Swiss pension fund association Afiaa has made its second UK investment with the acquisition of Quartermile 2, a brand-new building in Edinburgh. 'AFIAA is systematically continuing its investment strategy of making anticyclical investments,' the company said.
Swiss pension fund association Afiaa has made its second UK investment with the acquisition of Quartermile 2, a brand-new building in Edinburgh. 'AFIAA is systematically continuing its investment strategy of making anticyclical investments,' the company said.
The property, part of a multi-award winning development project, was acquired from local developer Gladedale Capital for an undisclosed amount. With a total area of 5,000 m2, the building was designed by the internationally-renowned Foster&Partner architectural office. The property is located near the city's business centre and is majority-let to a major solicitor's office with a long term lease contract.
'With the recession now over and the lack of new projects around, demand for first-class office properties in a central location is expected to rise in the coming years for the financial centre of Edinburgh,' Afiaa said, adding that the UK also offers a favourable exchange rate at the moment.
With worldwide offices in Zurich, Munich, Vienna, Madrid, New York, Toronto and Sydney, Afiaa entered the UK market in April 2009 with the acquisition of the long leasehold of an office building in the City of London for around £70 mln (EUR 77 mln).
Also this week, CLS Holdings' wholly-owned Durnvale unit exchanged contracts to buy Apex Tower, High Street, New Malden from Palmer Active Value Fund II for £21 mln, or a net initial yield of 8.66%. Apex Tower consists of 15 upper floors of offices (9,200 m2), four retail units and a four-storey car park at the rear. It is fully let save for one retail unit which is under offer and in solicitors' hands. It generates £1.86 mln income per annum, of which 94% is from BAE Systems which has a lease on the whole of the offices expiring in June 2020. The retail tenants include Tesco Stores and William Hill Organisation. The net initial yield to CLS is 8.66%.
Apex Tower marks CLS's first acquisition in the London market since 2006. Savills represented CLS and Knight Frank and BNP Paribas advised the vendor.
