Ardstone fund buys Edinburgh office for GBP58.9m
Ardstone Capital and CBRE Global Multi Manager have completed the purchase of the Citymark building, 150 Fountainbridge, Edinburgh for GBP33.7m on behalf of their UK Regional Office Fund.
This is the second purchase for the fund following an acquisition in July of the Sentinel building, 103 Waterloo Street, Glasgow for GBP25.2m thereby bringing its combined purchases in recent months to GBP58.9m.
The 102,115 sq ft Citymark building is a Grade A office building in the financial district of Edinburgh let to Lloyds Bank of Scotland for a further 12 years. The purchase price of GBP33.7m reflects a net initial yield of 7.2 per cent.
The Sentinel building is a 84,104 sq ft Grade A office asset located in the city's traditional core. The tenants include Morgan Stanley, AON and the British Steel Pension Fund and Ardstone is in the process of letting the last remaining floor in the building. This will improve the running yield to over 7.4 per cent. The GBP25.2m purchase price reflects a net initial yield of 6.9 per cent.
The Ardstone UK Regional Office Fund has been established as a separate account by Ardstone Capital for investment by clients of CBRE GMM. The vehicle is continuing to target the acquisition of core office assets across the major UK regional cities.
Ardstone Capital's UK managing director Craig McDonald says: “We are delighted to have acquired these high quality assets and are actively pursuing further acquisitions for our Regional Office Fund."
Alex Bignell, head of UK, CBRE GMM, says: “The Regional Office Fund is a further example of our successful new approach of forming exclusive ventures with specialist managers to enable our clients to access our preferred niches of the UK property market.”