Remake Asset Management has bought a mixed-use office and retail block at 40 Princes Street, Edinburgh, for £29.525m from Redevco in a deal that reflects a net initial yield of 7.5%.
The block was developed in 2005 and the retail space has been occupied by H&M for almost 20 years. The Grade A office space is fully let, with the most recent tenant being flexible workspace operator Cubo.
Gary Cameron, head of Scotland at BNP Paribas Real Estate, which advised Remake AM on the deal, said: “At a time when the wider market is facing challenges, particularly around the office sector and finance pricing, it demonstrates that for a quality asset in a core location, investor appetite remains.
“40 Princes Street offers the best office space on the street and Princes Street continues to be the dominant retail pitch for the city, book ended by the nearby St James Quarter. New occupiers are committing to space with some significant retail, hotel and leisure redevelopments in the pipeline.
“Our client has bought a landmark Edinburgh asset with a strong income profile at a time in the cycle where pricing is offering discount to longer term average yields. The deal shows the reach of the BNP Paribas network. It was great to work with our London and Paris teams to help deliver a retained client into the UK.”
BNP Paribas Real Estate and Pinsent Masons advised Remake AM. Lismore Real Estate Advisors and Dentons advised Redevco.
