UBS Asset Management has purchased the Quartermile 2 office building in Edinburgh from Swiss-based fund AFIAA for £28.5m – a yield of 5.4%.
The 58,840 sq ft prime asset is located in the Edinburgh Quartermile development, a mixed-use scheme of more than 1,000 new-build flats, over 350,000 sq ft of offices and retail and leisure space.
Quartermile 2 is let to five tenants with a weighted average lease term of about seven years.
Howard Meaney, head of real estate UK at UBS-AM, said: “Edinburgh continues to see robust occupier demand for high-quality and well-located office assets that offer tenants a bespoke working environment alongside access to a range of amenities, open spaces and excellent transport links.
“We look forward to enjoying some of the upside as this district continues to thrive, while our asset management team will also be working hard to let out remaining space to maximise the value of our latest investment.”
UBS-AM was advised by CMS Cameron McKenna Nabarro Olswang; AFIAA was advised by Brodies WS and GVA.
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