Precious Stones go for £35m

Published on Sunday 22 April 2007 01:26

A TRIO of buildings in Edinburgh occupied by Royal Bank of Scotland has been sold for more than £35m in one of the capital's biggest property investment deals of the year.

The office blocks known as "The Stones" at South Gyle Business Park were sold by Dunedin Property to Premier Diversified Property Fund, which is based on the Isle of Man.

Edinburgh-based Dunedin had put the whole of South Gyle Business Park - which covers 157,000 sq ft - up for sale in June at offers over 47m but had a change of heart in October after a deal with German investors is understood to have fallen through.

The Stones was put on the market in February with a price tag of 34m and was sold last week for 35.5m, which represents a net yield of 5.76%.

Dunedin bought the entire South Gyle Business Park for 37.5m in 2004.

Scott Gibson, director of Dunedin, said: "We decided to sell The Stones as we are active investors.

"The west Edinburgh office market continues to improve, so we will be concentrating on refurbishment and lettings of the core of South Gyle Business Park."

Alasdair Humphery of property agency Jones Lang LaSalle, which acted for Dunedin, said: "This sale reflects the increasing confidence in the area. There was significant international interest in The Stones."

RBS has leases expiring in 2020 on two of the three buildings - Broadstone and Forthstone - and a sub-lease from tenant Abbey National on a third, Cornerstone. That lease runs until 2013.

As well as its global HQ at Gogarburn, west of the Edinburgh bypass, RBS occupies Drummond House adjacent to the business park.