Patrizia's Rockspring Property Investment Managers has completed the off-market acquisition of 9-10 St Andrew Square in Edinburgh for £25.75 mln (€29 mln), reflecting a net initial yield of 5.2%.
The asset, a prime office and retail building, was bought from Balmoral, owned by businessman Sal Lalani's Mont Regis Holdings of America, on behalf of Rockspring Hanover Property Unit Trust (Hanover).
9-10 St Andrew Square comprises a total of 53,455 sq ft (4,970 m2) across eight floors. Sainsbury’s occupies the retail unit, which is one of their top performing Scottish stores, while Regus, the specialist serviced office providers, leases the remainder of the building.
Mischa Davis, Hanover fund manager at Rockspring commented: 'The Edinburgh office market offers a compelling investment case with an undersupply of available space generating rental growth. Whilst fully let to strong covenants, this asset offers growth through asset management and capex investment.'
Established 50 years ago, Hanover is an out-performing, actively managed, open-ended, UK-focused real estate fund which, as at Q4 2017, has a NAV of £507 mln.
Germany's Patrizia Immobilien announced the acquisition of Rockspring in December 2017
