Investor Topland has bought two offices in Edinburgh and Newcastle for £31.4m from EPIC, the REIT.
Topland bought the buildings, 145 Morrison Street in Edinburgh and Citygate II in Newcastle, for £12.1m at a 5.8% yield and £19.4m at a 7.8% yield, respectively.
145 Morrison Street sits in Edinburgh’s Exchange district and contains 26,900 sq ft of offices across the ground and four upper floors.
It is single let to outsourcer Capita until 2030, with a rent of £740,000 a year.
Citygate II is in central Newcastle and has 63,000 sq ft of office space over the ground and five upper floors. It is fully let to three tenants, and makes £1.59m a year in rent.
Topland chief executive Sol Zakay said: “These are quality assets, very well located in dynamic office markets. We remain acquisitive and will be looking to continue with our investment drive into 2022.”
The acquisitions round off a busy year for Topland, which has deployed more than £240m in 2021 in equity, with a focus on retail, industrial and office deals.
Savills advised Topland on the deal. Richard Merryweather, joint head of UK investment at the agency, said the buildings were “perfectly placed to capitalise on investment into the wider area with significant rental growth potential”.
Allsop acted on behalf of EPIC.
See also: EPIC continues office sell off
To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews
Photo © Paul Brown/Shutterstock
Discover which agents are transacting the most space in Edinburgh and Newcastle >>
