France's Remake Asset Management has acquired a prime mixed-use property in Edinburgh from Redevco for £29.5 mln (€34.5 mln), at a net initial yield of 7.5%.
Developed in 2005, the office and retail block at 40 Princes Street is only one of few modern developments located on the historic street offering large retail space and Grade A offices.
The property benefits from a prime location close to Waverley Station, St James Quarter, and St Andrews Square.
It has been home to fashion retailer H&M for almost 20 years. The offices are fully let, with the latest tenant, flexible office provider Cubo, signing up earlier this year for their first Edinburgh offering.
BNP Paribas Real Estate and Lismore Real Estate Advisors brokered the deal for their respective clients.
Gary Cameron, head of Scotland at BNP Paribas Real Estate commented: ‘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.’
