On behalf of Aberdeen Standard Investments, Savills advised on the sale of a major mixed use development in the heart of Edinburgh, marking the largest mixed-use investment deal in Scotland since October 2016.
Costing a total of £75 million and extending to 180,000 sq ft, the development was originally completed in 2016 by the Standard Life Pooled Property Pension Fund in a joint venture with Peveril Securities and won the Commercial Development of the Year title in the 2017 Scottish Property Awards. Prior to the sale, the office tenant Standard Life Aberdeen reaffirmed its commitment to the building for use as its headquarters by agreeing a lease extension to 20 years. The offices account for 60 per cent of the total income with retail chain TK Maxx, and restaurant and bar outlets Vapiano, The Ivy, Gaucho, The Refinery and Wagamama accounting for the remaining 40 per cent of income.
A successful sale was completed in April 2019 following a selective marketing campaign to German pension fund, die Ärzteversorgung Westfalen-Lippe (ÄVWL) c/o KanAM Grund Group for £120 million, reflecting a net initial yield of 4.45 per cent.
Savills has been involved in the development from site purchase in 2013 through to the recent investment sale. By instructing Savills, the client had the benefit of local, national and international experience in selling assets of this scale. A select group of buyers were approached and the sale progressed to exchange and completion without the wider market being aware. It is the record price for an asset of this nature in Scotland, and indeed across the regional markets, despite wider political uncertainty.