by Jane Roberts
Standard Life has stormed into the Edinburgh office market to mop up space for its rapidly expanding operation.
The life company is negotiating to buy the remaining phases of CALA-Morrison’s Exchange Plaza for a 10,590m2 (114,000 sq ft) HQ. CALA-Morrison had been discussing a speculative office scheme with other funds.
Neither side would comment on the terms of the deal, but CALA-Morrison will build the new space – Exchange Crescent – which will be opposite Standard Life’s existing headquarters on Lothian Road.
Local agents said it was likely to be based on rents around £248 per m2 (£23 per sq ft) – the highest achieved at Exchange Plaza’s first phase – and a 6.5% yield.
The first phase of the development, Clydesdale Bank Plaza, is almost fully let and there is no other modern, open-plan office space left in the city centre. Peter Smolker of Hillier Parker said: “By taking the remaining phases Standard Life has also made a severe dent in the development pipeline.”
Standard Life has also taken 5,295m2 (57,000 sq ft) of short-term overflow accommodation from PACE at 20 Brandon Street next to its Tanfield administration building. PACE was advised by Ryden; Jones Lang Wootton is acting for Standard Life.
- Standard Life is also buying a small refurbishment scheme in Mayfair, with Paul Jackson’s Victory Land, for about £4m.
The building, at 66 St James’s Street, is nicknamed “the rocketship” because of its striking aluminium cladding. It was originally owned by the Gas pension fund, which sold it three years ago to the German manufacturer of the cladding after a dispute between them about liability for correcting faults in the building. The faults were corrected.
The property has 808m2 (8,700 sq ft) of vacant office space and an apartment above. Jackson said it would be ready for occupation by August. Conway Relf and Churston Heard are advising.
