This well-known Edinburgh office building has been sold for £5m

An office building in Edinburgh’s New Town has changed hands for more than £5 million – a fifth above the initial asking price.

The building, which overlooks Queen Street Gardens, received World Heritage status in 1996. Picture: contributed.

Wemyss House, located at 6-8 Wemyss Place and facing on to Queen Street Gardens, has been purchased by an Austrian private family office.

It spans about 12,400 square feet over five floors, and is home to tenants including Savills, Quartermile Ventures, and legal software company Opus 2 International. It also features a residential penthouse on the fourth floor, which is owned separately.

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The transaction represents a net initial yield of around 5 per cent, with Knight Frank representing the vendor – also a private investor – and Savills acting for the buyer.

High demand

Euan Kelly, partner at Knight Frank Edinburgh, said: “The deal for Wemyss House underlines the strength of demand for quality office assets in Edinburgh – the sale attracted significant interest and the price achieved was around 20 per cent ahead of initial asking.

“It also reflects the continued prominence of international investors in Scotland’s commercial property market, who last year accounted for more than half the value of all transactions, and the growing role of high-net-worth individuals who are seeking secure, long-term sources of income.”

Mark Fleming, investment director at Savills in Edinburgh, added: “Our client was delighted to have secured this attractive, well-let investment against a background of fierce competition from other investors.

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“The quality of the building, its architecture and location within the New Town, which received World Heritage status in 1996, were all attributes that attracted our client. Further, the fact that residential values are soaring in the immediate locale, means the asset’s value is also substantially underpinned by residential as an alternative use.”

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