Kenmore will complete the sale of its Citypoint office scheme in Edinburgh tomorrow (Friday) to Rockspring Property Investment Managers for over £18.5m. The deal reflects an initial yield of 5.47%.
The investment manager, formerly known as PRICOA Property Investment Management, purchased the 42,000 sq ft building for its Rockspring Hanover PUT.
Citypoint was acquired with vacant possession by Kenmore in July 2005.
It was subsequently refurbished and let to HBOS and TIE, the Edinburgh tram initiative.
Both were let recently on 10-year leases with break options at year five.
Grant Rawlinson, Kenmore’s investment director, said: “The market supports strong pricing for assets like this. It is in an improving location and we did the majority of the work in terms of letting, and have put a rental guarantee on the final vacant floor.
“The rents are at realistic levels and that has bought a lot of interest. We think Rockspring has a pretty good deal.”
The vacant floor is just over 8,000 sq ft and is attracting interest from occupiers keen to position themselves close to proposed new links to The Exchange, Edinburgh’s financial district.
The building produces an annual rent roll of just under £1m.
James Barr acted for Kenmore and Eric Young & Co represented Rockspring.
References: EGi News 18/05/06
