Distinctive office building in Edinburgh’s west end has new owner after multi-million deal

A distinctive office building in Edinburgh’s west end has a new owner following a multi-million-pound property deal.

The building, 145 Morrison Street, has been acquired along with an office block in Newcastle for a total of £31.4 million by Topland. It has bought the two properties from a listed trust managed by the Ediston Property Investment Company (Epic).

The Morrison Street building is located in the Scottish capital’s Exchange financial services district. It provides some 26,900 square feet of grade A office accommodation over ground and four upper floors.

The building is entirely let to outsourcing giant Capita until July 2030. It was acquired for just over £12m, reflecting a net initial yield of 5.8 per cent.

The 145 Morrison Street building is located in Edinburgh’s Exchange financial services district. It provides some 26,900 square feet of grade A office accommodation over ground and four upper floors. Picture: McAteer Photograph

Sol Zakay, chairman and chief executive of Topland, said: “These are quality assets, very well located in dynamic office markets.

“These latest acquisitions come off the back of a very busy year for Topland. On the equity side we have deployed over £240m in 2021 - our investment strategy continues to be deal-led with single and multi-let investments across the retail, industrial and office sectors.

“We have also been deploying capital through joint ventures in both London and the regions, again across a range of sectors and including development opportunities. We remain acquisitive and will be looking to continue with our investment drive into 2022.”

The larger Newcastle office building, Citygate II, sits in the heart of the city and is located adjacent to two prominent developments, Strawberry Place and The Helix, Innovation Quarter.

Property adviser Savills acted for Topland on the acquisition. Property consultancy Allsop acted on behalf of the seller.

Richard Merryweather, joint head of UK investment at Savills, said: “Both buildings are positioned in prime locations and are perfectly placed to capitalise on investment into the wider area with significant rental growth potential.”

The Newcastle building comprises office accommodation totalling some 63,000 square feet, arranged over ground and five upper floors. The building is 100 per cent let to three tenants producing about £1.6m per annum, and was acquired for just under £19.4m, reflecting a net initial yield of 7.8 per cent.

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