French investor Remake Asset Management has bought 40 Princes Street in Edinburgh for close to £30m, reflecting a net initial yield of 7.5%.
The mixed-use office and retail block, in a prime location next to Waverley Station, St James Quarter and St Andrew Square, was put up for sale by Redevco on behalf of owner Arioso UK Properties in May.
Developed in 2005, it is one of only a handful of modern developments on the historic pitch of Princes Street offering large retail space and grade-A offices.
It has been home to H&M for almost 20 years and has a fully let office line up.
Cubo is the most recent tenant signing, taking space earlier this year for its first Edinburgh flex offering.
BNP Paribas Real Estate advised the purchaser.
Gary Cameron, head of Scotland at BNP Paribas Real Estate, said: “Our client has bought a landmark Edinburgh asset with a strong income profile at a time in the cycle where pricing is offering discount to longer term average yields.”
Lismore Real Estate Advisors advised the vendor.
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