Property investment firm Kennedy Wilson has acquired Waverleygate from investment manager PATRIZIA for £78m, excluding closing costs.
The prime office building in Edinburgh is 97% occupied by tenants including Amazon, Microsoft, H&M, the Scottish Government, and the NHS.
Kennedy Wilson stated that it will invest in the property to provide “first class amenities and take advantage of the significant growth opportunity in the Edinburgh market”.
Waverleygate currently produces approximately £4.4m of annual net operating income. It underwent a renovation in 2004 that delivered approximately 203,400 square feet of open-plan office space across eight floors and retained the Grade A listed Italian Renaissance façade.
The property’s sustainability credentials now include an energy rating of EPC B and BREEAM Very Good, and the building also includes four landscaped roof gardens, shower facilities, a basement level gym occupied by The Gym Group, bike parking and 50 parking spaces.
“This acquisition reflects our view that, at current pricing levels, there is attractive value in the UK office market particularly for assets located in major employment hubs with high-quality educational institutions,” said Mike Pegler, head of UK at Kennedy Wilson.
“Waverleygate immediately adds solid recurring income from a strong tenant base and presents multiple opportunities to grow net operating income and asset value by further enhancing environmental credentials and overall management of the property.”
Waverleygate sits adjacent to Waverley train station on St Andrew Square, opposite the recently-opened St James Quarter shopping centre.
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