UK infrastructure investor Equitix is poised to acquire prime Edinburgh asset Argyle House for £40m – a 5% yield.
Kennedy Wilson has instructed CBRE to market the 220,402 sq ft office on Lady Lawson Street.
The site is let to the secretary of state for communities and local government until 2033 and generates £2.4m pa.
While the covenant generates long-term income, there is also redevelopment potential for a variety of uses, including student accommodation, flats, and residential.
The site is one of multiple assets that Kennedy Wilson has begun to shed after acquiring them through purchasing non-performing loan portfolios following the downturn.
It was bought by Kennedy Wilson in 2014 from Moises and Mendi Gertner as part of the Fordgate portfolio.
Equitix also bought the Avon loan portfolio from Kennedy Wilson for £100.3m. The portfolio comprises five fire control centres totalling 114,900 sq ft in Cambridge, Castle Donington, Durham, Wakefield and Wolverhampton.
Earlier this year, Kennedy Wilson sold the 76,800 sq ft 2 West Regent Street in Glasgow to Warburg HIH Invest Real Estate for £31.5m – a 5.84% yield.
The building was previously owned by CSE (West Regent Street), a company controlled by City Site Estates, before it went into administration in 2012.
EY’s Real Estate corporate finance team and Danesborough Properties advised Equitix.
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