TH Real Estate has purchased the OMNi Centre, a mixed-use asset in Edinburgh, from Aviva Investors. The property, which is being acquired on behalf of the European Cities fund, was sold for an undisclosed sum.
'We believe the OMNi Centre is an attractive investment for the fund due to the strong forecasted income return, high occupancy rate of over 96%, a long, well-diversified and secure rental income base, and the asset’s prime location in Edinburgh’s East End,' commented Andrew Rich, lead fund manager for European Cities. 'The centre of gravity for retail and leisure activity is moving east in Edinburgh, as demonstrated by the new St Andrew Square development and Edinburgh St James (ESJ) redevelopment. The fund is in a unique position to benefit from the ESJ development as we can work with the teams delivering this project to ensure that we remain a complementary part of the offer at this end of the city.'
Totalling around 20,440 m2 of space, the centre is anchored by a 12-screen multiplex Vue cinema, and incorporates bars, restaurants, a health and fitness club and a five star hotel trading as The Glasshouse.
'In our view, the OMNi centre should benefit from a general uplift in footfall as the area experiences significant positive change, enhancing the desirability of the location over the medium to long term. We have also identified a number of asset management opportunities to increase income return for our investors,' added Rich.
The news came as TH Real Estate revealed it had also purchased a prime office asset in Berlin for the European Cities fund, dubbed The Cube. In a statement, the company said that this fund was targeting 'income-producing properties in ‘future-proof’ cities across Europe'. It noted that 'the OMNi centre fits strategically within the target initial portfolio being assembled' and that 'The Cube is complementary from a portfolio construction perspective, providing an opportunity for the fund to access this key investment market at a very attractive point in the occupational market'.
