UBS Asset Management’s real estate and private markets business completed the acquisition of prime office building Quartermile 2 on the site of the former Edinburgh Royal Infirmary for £28.5 million.
The 58,840 sq ft Grade A building was acquired on behalf of a separate account from the Swiss-based fund, AFIAA.
Quartermile 2 is located within Edinburgh’s larger Quartermile development, a mixed use scheme comprising more than 1,000 new build apartments, 350,000 sq ft of office space, together with retail and leisure developments.
Designed by Foster & Partners and extending to 19 acres, the entire Quartermile development houses more than 20 businesses that employ 2,200.
Howard Meaney, head of real estate UK at UBS-AM, says: “Having long been impressed by Edinburgh’s transformational Quartermile area, we’re very pleased to now gain access to it through our acquisition of this prime office asset.
“Edinburgh continues to see robust occupier demand for high quality and well-located office assets that offer tenants a bespoke working environment alongside access to a range of amenities, open spaces and excellent transport links.
“The Quartermile development goes from strength to strength as one of the city’s most desirable mixed-use schemes, having achieved a number of major pre-lets with ambitious plans in the pipeline to capture further growth.
“We look forward to enjoying some of the upside as this district continues to thrive, while our asset management team will also be working hard to let out remaining space to maximise the value of our latest investment.”
Maximillian Opitz, transaction manager for Europe at AFIAA, says: “We want to thank UBS for their professional collaboration.
“The great result for both parties has underlined the strength of the Scottish market.”
Stuart Agnew, Senior Director at GVA, the sole selling agent, adds: “We are delighted to have secured this result for our client following some competitive bidding for the asset.
“It is an example of improving market sentiment in Scotland where both domestic and international investors are seeking good quality stock providing a comfortable yield discount to London, but with strong occupational dynamics.”