Cordea Savills fund acquires phase 2 of Edinburgh Quay scheme

Cordea Savills European Commercial Fund has acquired phase 2 of the multi award-winning mixed-use scheme Edinburgh Quay in Edinburgh, Scotland for £21.1 mln (EUR 24 mln). The price reflects a net initial yield of 6.1% based on contracted income. The vendor was Edinburgh Quay Ltd.

Located in Fountainbridge, Edinburgh Quay is a canalside scheme which complements the existing financial Exchange district. The company behind the scheme, Edinburgh Quay Ltd, is a joint venture between Miller Developments and British Waterways.

Quay 2 comprises 60,134 sq ft (5,587 m2) of grade A offices with the benefit of 29 designated basement car parking spaces. The building is currently home to high calibre tenants with office rents ranging from £27.50 per sq ft to £30 per sq ft.; Baker Tilly, Barclays Bank, Pinsent Masons, Companies House & Lloyds TSB Bank with 13,272 sq ft in two suites available to let. Tesco is to trade from the ground floor retail unit. The sale to the fund, which is advised by Cordea Savills LLP, also includes the basement car park which is let to Britannia Car Parking.

Chris Lewis, Cordea Savills LLP said, 'Securing a Grade A multi-let office in Edinburgh fits ideally with the profile of Cordea Savills European Commercial Fund. The fund is active throughout Europe, and with Edinburgh's international reputation for quality and the high calibre of Quay 2 and its tenants, our investors are pleased to add this property into the portfolio in a highly competitive market.'

Edinburgh Quay Ltd was represented by Jones Lang LaSalle. Kenny Waitt, director at Jones Lang LaSalle, said, 'International investors continue to focus on the underlying strength of the Edinburgh economy and are comfortable making significant investments in the commercial property market.'

Cordea Savills was represented by CBRE.