West Midlands Pension Fund, advised by CBRE Global Investors, has purchased Edinburgh’s Citypoint office building from Rockspring Hanover Property Unit Trust for £14.5m.
The multi-let block, in the city’s Haymarket district, comprises 41,955 sq ft of fully-occupied office space. Tenants include BDO, Harper Macleod and NATS.
Citypoint generates an annual income of £885,510 and the purchase price reflects a net initial yield of 5.76%.
Knight Frank acted on behalf of WMPF/CBRE Global Investors; Eric Young & Co represented Rockspring Hanover Property Unit Trust.
Knight Frank partner Alasdair Steele said: “This will be a strong strategic purchase for West Midlands. There are clear signs that the imbalance between supply and demand in the Edinburgh office market is starting to lead to rental growth.”
Rockspring fund manager Mischa Davis said: “The tram and train station development has improved Haymarket as an office location. Letting the final vacant floor has allowed us to sell Citypoint and complete our strategic business plan.”
