WG Mitchell has completed the purchase of the two office buildings in Edinburgh’s Charlotte Square, from Kwik-Fit founder, Sir Tom Farmer.
The £2.4m deal strengthens WG Mitchell’s presence on what is widely seen as Edinburgh’s most prestigious location.
The property investment company will now spend £600,000 refurbishing numbers 13 and 14 Charlotte Square.
The properties, which total over 5,400 sq ft, are expected to produce initial yields of 5.5% to 6%.
The refurbishment will be complete by spring, in anticipation of a pick up in activity in the New Town.
WG Mitchell’s Patrick Hegarty expects to achieve a rent of £20 per sq ft, up from typical levels of £19 per sq ft in Charlotte Square in 2005.
He said: “Conditions have improved in the whole of Edinburgh’s West End.
“Big firms need open plan space, but there is a niche market for the likes of architects and small law firms.”
A number of law firms have vacated Edinburgh’s West End town houses in favour of new build schemes in recent years.
WG Mitchell already owns five other buildings in Charlotte Square, and last year purchased 1-4 Glenfinlas Street, just off Charlotte Square, which houses law firm Maclay Murray & Spens.
Savills acted for WG Mitchell.
References: EGi News 25/01/06
