M&G Real Estate has confirmed its £49.1m acquisition of the four-acre mixed-use development site known as the Haymarket in Edinburgh.
The site, located in the Scottish capital’s Exchange District, has planning permission for three office buildings totalling 350,000 sq ft, 40,000 sq ft of retail and leisure space, a 190-room hotel and a 172-room aparthotel.
It has a gross development value of around £280m.
M&G has been expanding its office development portfolio in Scotland and has previously agreed a deal to fund the construction of Quartermile 3 and Quartermile 4 in Edinburgh, in addition to plans to provide a £100m workplace at office building the Grid in Glasgow.
Chris Perkins, head of business space at M&G Real Estate, said: “With the current supply/demand dynamics, bringing 350,000 sq ft to the market will reinforce the Exchange District as a prime hub for business in Europe.
“While Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities.
“As a provider of investment solutions across geographies, sectors and product types, this investment reinforces our strategy of acquiring assets with potential for sustained income and strong capital appreciation located in targeted growth zones.”
Savills represented M&G Real Estate.
To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
