Global real estate investment company Kennedy Wilson has acquired Waverleygate, a prime office building in Edinburgh, UK, from the real assets investment manager Patrizia for $106 mln (€121 mln), excluding closing costs.
Waverleygate is one of the most prominent office buildings in the heart of Scotland’s capital city and is 97% occupied by national tenants including Amazon, Microsoft, H&M, the Scottish Government, and the National Health Service.
With a Class A vacancy rate in Edinburgh City Centre of 2%, Kennedy Wilson plans to invest in the property to provide first class amenities.
Waverleygate, which currently produces $6 mln of annual net operating income, underwent a significant renovation in 2004 that delivered 203,400 sq ft (18,900 m2) of modern open-plan office space across eight floors and retained the Grade A listed Italian Renaissance façade. The property’s ESG credentials now include an energy rating of EPC B and BREEAM Very Good.
‘This acquisition reflects our view that, at current pricing levels, there is attractive value in the UK office market particularly for assets located in major employment hubs with high-quality educational institutions,’ said Mike Pegler, head of UK at Kennedy Wilson. ‘Waverleygate immediately adds solid recurring income from a strong tenant base and presents multiple opportunities to grow NOI and asset value by further enhancing environmental credentials and overall management of the property.’
