Edinburgh Quay 2 office building sold for £24.5m

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ONE of Edinburgh’s most prestigious office buildings has been sold in a £24.5 million deal.

Edinburgh Quay 2, home to companies including Baker Tilly, Barclays, Lloyds TSB Bank and Pinsent Masons, has been ­disposed of by Luxembourg-based Cordea Savills European Commercial Fund to unnamed clients of Knight Frank Investment Management.

The Edinburgh Quay building at Fountainbridge. Picture: Creative Commons

The Edinburgh Quay building at Fountainbridge. Picture: Creative Commons

The Fountainbridge office building is part of the Edinburgh Quay canalside scheme, a joint venture between Miller Developments and British Waterways developed to complement the existing financial Exchange ­district.

Nick Penny, director of investment in Savills Scotland, which secured the sale, said the Exchange district continued to develop and grow, and that Edinburgh Quay 2 had a strong visual presence within the city’s financial business district.

Cordea Savills European Commercial Fund had bought the property from Edinburgh Quay for £21.1m in 2010.

Edinburgh Quay 2 is 78 per cent let and generates a current net rental income of £1.72m a year, representing a 6.88 per cent net initial yield at the latest sale price.

The building has 60,134sq ft of grade A office space and 29 car parking spaces. The ground floor retail unit is occupied by Tesco.

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