LaSalle off-loads £21m Edinburgh building

    LaSalle Investment Management has completed the £21.24m sale of a mixed-use complex in central Edinburgh to a private Glasgow-based investor.   The buildings are at 33a-35 George Street and 66-90 Hanover Street and have been sold on behalf of Coal Pension Properties.   The sale reflects a net initial yield of 5.6%, rising to 6% on full reversion.   The site comprises 38,300 sq ft of offices, including Hobart House, and 11,500 sq ft of retail.   It includes seven prime shop units, two of which front George Street, three facing Hanover Street and two on Thistle Street.   The office space is let to tenants including HSBC, Mercer Human Resource Consulting, Towry Law Services and Sumerian Europe.   Income is split 60:40 between the office and retail elements and totals £1.26m annually.   The buyer is believed to be a Glasgow entrepreneur whose background is not in property and who is not a well-known name.   Steve Spray, director at LaSalle, said: “We got a good price and the purchaser got a good property, we’re both happy.”   Guy Strachan of Alan Watt Consulting, which advised the purchaser, added: “Our client is delighted with the acquisition of such a prime block of real estate in Edinburgh city centre which is rarely available on the open market.”   The scheme is 100% let and Hobart House has parking for 28 cars.   Glasgow-based Alan Watt was recently acquired by GVA Grimley. DTZ advised LaSalle.     david.quinn@rbi.co.uk