Waverleygate sold for $106m to Beverly Hills firm


Beverly Hills-based international real estate investment company Kennedy Wilson said it has acquired Waverleygate, the historic prime office building opposite the Balmoral Hotel in central Edinburgh, from the real assets investment manager Patrizia for $106 million, excluding closing costs.

Waverleygate is 97% occupied by tenants including Amazon, Microsoft, H&M, the Scottish Government and the National Health Service.

Kennedy Wilson has offices throughout the US and Europe, with global headquarters in Beverly Hills, California.

In its quarterly results in November, Kennedy Wilson reported assets under management of $20.5 billion.

“With a Class A vacancy rate in Edinburgh City Centre of 2%, Kennedy Wilson will invest in the property to provide first class amenities and take advantage of the significant growth opportunity in the Edinburgh market,” said Kennedy Wilson.

“Waverleygate, which currently produces approximately $6 million of annual net operating income, underwent a significant renovation in 2004 that delivered approximately 203,400 square feet of modern open-plan office space across eight floors and retained the Grade A listed Italian Renaissance façade.

“The property’s ESG credentials now include an energy rating of EPC B and BREEAM Very Good, and Waverleygate’s wellness features include four landscaped roof gardens with panoramic views, shower facilities, a basement level gym occupied by The Gym Group, bike parking and 50 dedicated vehicle parking spaces.”

Mike Pegler, Head of UK at Kennedy Wilson, said: “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.

“Waverleygate immediately adds solid recurring income from a strong tenant base and presents multiple opportunities to grow NOI and asset value by further enhancing environmental credentials and overall management of the property.”