L&G has sold a 43,774 sq ft Audi dealership in Edinburgh to financial services firm Wesleyan.
The site, located on Bankhead Drive in Sighthill, traded for £9.1m at a 7.5% net initial yield.
Operating since 2009, the showroom is the German car brand’s long-term home in the Scottish Capital. The dealership is operated by Lomond Motors, a subsidiary of Lookers.
Purpose-built to a high specification, the dealership was among the first in Audi’s UK network developed to its latest corporate architecture. It also underwent a £2m expansion and upgrade in 2016 following a strong period of trading.
Euan Kelly, capital markets partner at Knight Frank, which acted for the vendor, said: “The deal for Edinburgh Audi underlines the value available in the commercial property market for alternatives.
“Car sales have been remarkably robust in the years since the pandemic and the occupier is committed to the site long term, with RPI-linked rent reviews providing a level of protection against inflation.
“We expect more alternative property assets to transact in the next few months as investors look to different opportunities for long-term income in a more settled interest rate environment.”
Galbraith represented the buyer.
Image © Knight Frank
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