UK-headquartered Islamic bank BLME has struck a deal to acquire the Edinburgh headquarters of British Gas’s Scottish arm, at 1 Waterfront Avenue.
The bank has bought the waterfront offices from Palm Capital for £26.9m; this reflects a yield of 6.03%. The sale price is some way above its initial £24m price tag.
Darin Partners, which advised BLME on the deal, has been appointed as its asset manager.
Palm Capital had instructed JLL to market the grade-A offices as a long-income opportunity, at a net initial yield of 6.79%. It had previously bought the offices from Bargina Enterprises for around £16m.
The 94,124 sq ft offices were designed by Foster & Partners. They are fully let to GB Gas Holdings for 15.8 years on a full repairing and insuring lease expiring in February 2035, subject to a tenant break option in 2030.
“The asset was acquired at an attractive price and is expected to generate a steady return for our investors,” said Khaled Alanani, head of real estate investments at BLME.
The buyer also sought advice from CBRE.
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