Redevelopment option

Sixties office block Argyle House sold for £38m

Argyle House has divided opinion in Edinburgh

One of Edinburgh’s least loved buildings, Argyle House, has been acquired by PGIM Real Estate in a £38 million deal that could see it redeveloped.

The global investor has bought the 1960s office block in the shadow of Edinburgh Castle from Kennedy Wilson in an off-market transaction.

Argyle House, located at 3 Lady Lawson Street, is the home of Codebase, the technology incubator and recently appeared in the Irvine Welsh ‘Crime’ series.

It has been voted the city’s ugliest building, but has its supporters as an example of post-modern architecture.

Charles Crowe, head of UK investment at PGIM Real Estate, said: “Supported by the strong underlying fundamentals of the city, Argyle House combines a secure income stream with fantastic long-term potential for redevelopment and regeneration in the heart of Edinburgh city centre.”

Matt Milroy, head of asset management for the UK at Kennedy Wilson, added: “We acquired Argyle House opportunistically as part of a larger non-performing loan portfolio in 2014, identifying a strong underlying asset in a fantastic location generating government-backed income.

“Having reached the end of our business plan for Argyle House, we’ve taken the opportunity to realise our investment with the sale demonstrating the continued strength of the Edinburgh market.”

PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial.

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