Private investment manager Ardstone Capital has completed two regional office acquisitions in Scotland for a combined investment volume of £59 mln (€70 mln).
Private investment manager Ardstone Capital has completed two regional office acquisitions in Scotland for a combined investment volume of £59 mln (€70 mln).
In the latest transaction, Ardstone and CBRE Global Multi Manager (CBRE GMM) completed the purchase of the Citymark building in Edinburgh for £33.7 mln on behalf of their UK Regional Office Fund.
The deal marks the second purchase for the fund following the acquisition in July of the Sentinel building in Glasgow for £25.2 mln.
The 9,500 m2 Citymark property in the financial district of Edinburgh is a Grade A office building let to Lloyds Bank of Scotland for a further 12 years. The purchase price of £33.7 mln reflects a net initial yield of 7.2%.
The Sentinel building in Glasgow is a 7,800 m2 Grade A office asset located in the city's traditional core district. Tenants include Morgan Stanley, AON and the British Steel Pension Fund.
Ardstone said it is in the process of letting the last remaining floor in the building, which will improve the running yield to over 7.4%. The £25.2 mln purchase price reflects a net initial yield of 6.9%.
The Ardstone UK Regional Office Fund has been established as a separate account by Ardstone Capital for investment by clients of CBRE GMM. The vehicle is continuing to target the acquisition of core office assets across the major UK regional cities.
Alex Bignell, head of UK at CBRE GMM, commented: 'The Regional Office Fund is a further example of our successful new approach of forming exclusive ventures with specialist managers to enable our clients to access our preferred niches of the UK property market.'
