Townhouse office investments in Edinburgh are continuing to find favour with private Irish investors, according to Lambert Smith Hampton, with the Northern Irish stealing a march on their counterparts from the South.
The most recent deal has seen a 333 sq m (3,584 sq ft) Edinburgh townhouse at 55 Melville Street go to a private Northern Irish investor for £725,000, reflecting a net initial yield of 7%. The property is let on a floor-by-floor basis to Abbey National Benefit Consultants, TDG and Hastings International, and produces a rental of £53,130 pa.
“Over the last two years, the economy in Northern Ireland has experienced a bit of a renaissance,” explained Graeme Davies, director of investment at the Edinburgh office of the purchaser’s agent Lambert Smith Hampton. “This has led to a number of high net worth individuals entering the property market, thus creating a weight of money for well-let investment product. However, recent fluctuations in exchange rates have had a detrimental effect on those investors based in the Republic of Ireland, which has reduced their purchasing power somewhat.”
“The Edinburgh townhouse market has been a happy hunting ground for those with money to spend. With prime yields at around 6.75%, well-let townhouses offer attractive returns and with lot sizes in the order of £1m, these are well within the reach of private investors,” added Davies.
NAI Gooch Webster advised the vendor.
ALIGN=”JUSTIFY”>EGi News 08/05/01
