South Gyle office sells for £48.3m

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An office building in the South Gyle area of Edinburgh has been sold in a £48.3 million deal seen as reinforcing the capital's continued appeal as an investment destination.

Glasgow-based commercial law firm Leslie Wolfson acted in the transaction for Manchester-based private clients. The Grade A site is occupied by NHS National Services Scotland and is fully let to Scottish Ministers until June 2029.

Leslie Wolfson, which was established in 1955 and focused on commercial property, litigation, corporate and private client work, said the sale price reflected a a net initial yield of 5.76 per cent after purchasers’ costs.

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Senior partner Howard Beach said: “This significant investment of Middle Eastern funds into the Edinburgh office market, in the run-up to the UK referendum, demonstrates the continued appetite of foreign funds to invest in quality assets with long-term secure income and is further evidence of the UK’s appeal on the worldwide stage.

"We have, more recently, seen evidence of private equity investment in Scotland at a time when many funds’ nervousness over the Scottish political situation is creating a clearer path for those who view this as a time of opportunity.”

The law firm also noted that over the past year it has acted in "a number of other large deals" including the sale, for a Helical plc-led joint venture, of the Clyde Shopping Centre in Clydebank for £68m; advising Tapi Carpets on the rollout of their Scottish expansion programme; the acquisition of the Quartermile Car Park in Edinburgh for retained client Q-Park, and ongoing property work for established clients such as London-based Danobe Securities, Handelsbanken, and Beaverbrooks the Jewellers.