Commercial property: Knight moves and takes Capital assets

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Developer Knight Property Group has bought two adjoining prime city centre buildings on George Street, Edinburgh, from Royal London Asset Management.

Both properties comprise a retail unit at ground level, with basement floors and three self-contained upper-floor office suites.

Knight paid in excess of £8 million for the pair at number 67 and 69 on the Capital street renowned for its high-end shopping, leisure and nightlife offerings.

The retail units are currently occupied by lifestyle clothing retailer Fat Face and active wear specialists Sweaty Betty.

The office suites above both outlets offer a mix of cellular and open-plan space for tenants, with one refurbished suite available to let at present.

The buildings are situated in a prime block on the New Town thoroughfare, with surrounding occupiers including Lyle & Scott, Laing the Jeweller and Laura Ashley, and several restaurants, including Contini George Street and Miller and Carter.

Howard Crawshaw, director at Knight Property Group, says: “These properties truly offer tenants a great space and location, situated on one of the main retail pitches in Edinburgh.

“We believe in George Street as a niche retail destination for aspirational brands, and the current retailers trade exceptionally well from these locations.”

The purchased buildings have an interesting history. Number 67 served time as the Capital premises of Yorkshire Insurance, and its facade was refurbished in 1935.

Number 69 used to house the British Linen Company Bank, and its ornate exterior dates from 1905 with distinctive depictions of the
12 signs of the zodiac.

JLL acted for Knight and Mark Woodcraft of MWM acted for Royal London Asset Management in the purchase.

Close by, Knight has recently completed other developments in the Capital at 4 North on St Andrew Square and 2 Castle Terrace.

The 4 North project achieved completion in May, having been made Deal of the Year at the 2018 Scottish Property Awards.

Purchased in spring 2016, the speculative redevelopment created 41,487sq ft of modern office space.

During the reconstruction, the whole property was pre-let to Australian stock transfer company Computershare on a 20-year lease.

The refurbishment of 2 Castle Terrace created four floors of office accommodation with outstanding views of Edinburgh Castle.

The continuing investment by Knight in the Capital market marks a shift in focus for the company, which has its origins in the North East of Scotland.