London-based private real estate investment firm Capreon has acquired three office buildings in Edinburgh, Scotland, for £37 mln (€41.7 mln).
This acquisition, which follows a recent deal for three buildings in Madrid, Spain, is Capreon's third addition to its smart workplaces portfolio in Europe.
The Edinburgh Quay offices are 92% leased to prestigious tenants like Apple, Bloomberg, and the Financial Conduct Authority.
They have a replacement value of £49 mln (€55 mln) and a Weighted Average Lease Break (WALB) of over five years.
A quayside residential development is being built close to the office buildings.
Capreon plans to upgrade the Quay 1 property to operational Net Zero Carbon status.
As part of its smart workplace strategy, Capreon invests in offices with excellent amenities and strong ESG credentials, high tech campuses and life science assets, mainly located in certain high-innovation cities in the UK, Spain and the Netherlands.
George Minns, managing director at Capreon 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.’
Raphael Noe, partner at Capreon added: ‘This transaction highlights our ability to invest thematically on behalf of our investor clients, and we have identified significant appetite from them to grow this strategy further in 2023. We are pleased to have now closed this deal and continue to look for further opportunities in the European market.’
