German investor Patrizia is to buy the Apex 123 office block in Edinburgh from Catalyst Capital in an off-market deal for around £28m – a 7.06% yield.
The office, next to Haymarket Interchange, comprises 90,960 sq ft of space and currently generates an annual rental income of around £2.1m.
Its tenants include Scottish Enterprise, the secretary of state and Stewart Milne Group.
Patrizia may be able to add additional value through asset management by arranging lease regears.
There are also a number of known requirements in the Edinburgh office market, including Pinset Masons, which is looking for 30,000 sq ft, and First New Zealand Bank, which is looking for 20,000 sq ft. Both are understood to be considering Apex 123 as an option.
This is the latest in a number of German investments made in the Scottish capital. Most recently, German investment fund GLL Real Estate Partners Pan European Property Fund bought Exchange Place 1 from Aberdeen Asset Management for £47m. The deal completed in May.
Last year, German fund Triuva has bought Quartermile Four in Edinburgh for £68m – a 5.25% yield.
Cuthbert White is advising Catalyst Capital.
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