Patrizia Immobilien AG has acquired the Apex House office complex in Edinburgh from Catalyst Capital for £26m.
The acquisition was made on behalf of a value-add fund managed by PATRIZIA for a large German pension fund based in Northern Germany.
James Muir, Patrizia’s managing director for the UK & Ireland, said: “The acquisition of Apex House presents an opportunity to invest in a value-add asset in a market with strong fundamentals. The UK economy remains resilient with good levels of GDP growth and consistently high levels of employment.
“In addition to this, investor appetite for UK real estate has increased significantly following the aftermath of the Brexit vote. As a UK financial centre, Edinburgh is second only to London and the demand-supply imbalance in the city makes this acquisition a tremendous opportunity to deliver excellent value for our clients.”
Built in 1991, Apex House offers more than 90,000 sq ft of space across three buildings, in addition to 136 parking spaces.
The property is around 80% occupied with an average remaining lease term of four years. Tenants include Scottish Enterprise, Scottish Further and Higher Education Funding Council, Mazars LLP and Svenska Handlesbanken AB.
Through active asset management and targeted refurbishment, Patrizia said it plans to “take advantage of the tight market conditions in Edinburgh in leasing the remaining vacant space”.
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