PROPERTY developer Ediston has its sights set on doing more deals in Edinburgh following the official launch of its £10 million speculative office development.
Danny O’Neill, the company’s owner and senior director, said: “We’d like to do more in the city. We are working hard to carry on with more schemes.”
The former Standard Life property fund manager added that the Haymarket corridor – where the new five-storey office building, 145 Morrison Street, is based across from the recently extended conference centre and Atria development – was “improving”.
In its most recent transaction, the company acquired Robroyston retail park in Glasgow for £14m from Dawn Group.
“We are very selective and very opportunistically led,” added O’Neill. “The assets we are typically buying in both the retail and commercial sectors are buildings that are really well located but they are mis-priced.”
He said that investor confidence in general was returning to the commercial property market.
“The regional market is improving. We buy buildings that are unfashionable but are 100 per cent prime locations, and we turn them into investable buildings,” said O’Neill.
“The stock we have been buying in the last year wouldn’t have been bought by institutions, but you can guarantee they will be bought by them when we have finished.”
The group is backed by real estate investment fund Europa Capital, a subsidiary of Mitsubishi, in a £250m joint venture – called the Ediston Opportunity Fund.
Stuart Heslop who heads real estate finance at RBS said of 145 Morrison Street: “Ediston has demonstrated real vision in getting this scheme to market early and ahead of what should be an exciting period, with further development activity to come in the Haymarket corridor.”
Ediston’s £100m strong portfolio includes an office in Aberdeen and the Heathfield Retail Park in Ayr.