South Korea’s Hyundai Asset Management and the UK’s Roebuck Asset Management have completed a transaction to buy the Aegon UK head office in Edinburgh from M&G for just over £133 million.

The deal for the 247,500 sq ft office building at Edinburgh Business Park –near the Gyle on the west edge of the city — is the largest Scottish commercial property deal to be completed so far this year.

The property is let to Aegon UK for a further 17 years.

Nick Rhodes, managing partner at Roebuck Asset Management, said: “We are extremely pleased to have completed the acquisition of this prime office investment during the Covid-19 pandemic.

“The experienced acquisition team including Dentons, Ereira Mendoza, Centridge Partners and Sheridan Property Consultants managed to stabilise all areas of the transaction over the UK’s lockdown, enabling the purchase to continue.

“1-3 Lochside Crescent represents an exceptional investment opportunity, secured against robust credit and providing annual rental inflation.

“Edinburgh remains a highly attractive investment location offering favourable demand and supply dynamics.

“With the continued occupier requirements and future development constraints, we anticipate further evolution of these positive market trends.

“This will be the seventh transaction Roebuck have completed with South Korean investors and the second in Scotland.”

Hyundai Asset Management completed the acquisition of 1 South Gyle Crescent in Edinburgh for £55.17 million last year.