Knight Property Group has brought its heritable interest, equivalent to an English freehold interest, in a multi-let office in Edinburgh to market for £11m, which reflects a yield of roughly 9.1% and a capital value of £259 per sq ft.
The building at 4-5 Lochside Avenue in Edinburgh Park offers 42,519 sq ft of office space spread across the building’s three storeys, which are let to SP Transmission PLC, Pulsant Ltd, and Lumacron Technology Ltd.
The property produces an annual rental income of around £1.1m per year, at an average rent of £25 per sq ft, with an average remaining lease term of roughly 7.6 years to expiry and 4.9 to breaks.
Prime city centre rents are currently at £46 per sq ft for new build, Grade A stock and are expected to reach £47.50 per sq ft by the end of the year due to a shortage of high quality space.
Agents Lismore has been appointed to market the asset.
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