'Green shoot' on George Street
By Stewart McIntosh
While it is too early to declare a thaw in the market, an £8.7 million
deal on Edinburgh’s George Street could indicate a slight cracking in
commercial property’s nuclear winter.
In one of the first investment deals of 2009, Scottish Widows Investment
Partnership has sold George House at 126/128 George Street on behalf of
clients. The purchaser was Edinburgh-based Thistle Property Group and
the price reflects a net initial yield of 7.25 per cent.
Behind its listed façade, which dates back to 1785, the accommodation
comprises 18,500 sq ft of modern open plan office space, plus a leisure
or retail unit on the ground floor.
Marketing agent Alasdair Humphery of Jones Lang LaSalle said: “Despite a
challenging marketing environment we generated very credible interest
from the UK, Ireland and overseas. This sale demonstrates that quality
product is still sought after by a broad cross section of the market.”
Elliot Cassels, a partner a Montagu Evans in Edinburgh who acted on
behalf of Thistle
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Property Group said: “We are delighted to have secured this prime
property for our client, with income secured to the Scottish Ministers
and Scottish and Newcastle.”
Alasdair McCaig of Thistle Property Group argues that “sensibly priced”
commercial property investments are beginning to come onto the market.
“The recent reduction in borrowing costs means buying prime assets at a
sensible yield works well for us – and the acquisition of George House
fits in well with our existing portfolio,” he said.
Meanwhile, Infrastructure Management Ltd has taken 4,909 sq ft at 11
Thistle Street, Edinburgh, at a rent of £19 a sq ft. The company,
which provides vehicle management services, has struck a 10-year deal,
with a 5-year lease break. The landlord is Zurich Assurance Limited, for
whom JLL and DTZ are letting agents.
And in Glasgow, G1 – the former GPO HQ in George Square – has secured
its first tenant at a new headline rental for the city.
Gardiner & Theobold has signed a deal to occupy the 12,314 sq ft first
floor of the HF Developments scje,e and will move into the 131,000 sq ft
building when it is completed later this year.
| Announcement from Comprop
Following this issue, CompropScotland will be going offline for a while.
With more than two million hits per annum, we believe we’ve created a
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