Real estate investment firm Capreon announced it has acquired Edinburgh Quay, a city centre complex of three office buildings at the east end of Fountainbridge in Edinburgh, for £36.8 million.

The acquisition is the third addition to Capreon’s European “smart workplaces” portfolio and follows a recent transaction for three buildings in Madrid, Spain.

The Edinburgh Quay offices are 92% leased to top tier tenants such as Bloomberg, Apple and the Financial Conduct Authority, have a replacement value of £49 million, and a Weighted Average Lease Break (WALB) of over five years.

Adjacent to the buildings, a quayside residential development is under construction. Capreon plans to further develop the buildings include bringing the Quay 1 property to operational Net Zero Carbon status.

Capreon is partner-owned and part of the Noé Group of companies, and has over €2.5 billion of assets under management.

Capreon said: “Capreon’s smart workplace strategy is centred on investing in areas where people want and need to work, in offices with excellent amenities and strong ESG credentials, high tech campuses and life science assets.

“The strategy is focused on defined districts of certain high-innovation cities within the UK, Spain and the Netherlands.”

Capreon MD George Minns said: “We are delighted to close this transaction on three buildings in Edinburgh which are a fantastic asset in Capreon’s ever-growing portfolio.

“We are buying income with excellent covenants in an undersupplied market, at a 25% discount to replacement cost, while also delivering a Net Zero Carbon business plan.”