Edinburgh development sold to real estate investment firm PRUPIM
The Waverleygate office development in Edinburgh city centre has been sold to investment firm PRUPIM in a £46 million deal.
Waverleygate, a multi-let office development at the east end of Princes Street, was acquired by Highcross in 2010 for £35 million after the original developer, Castlemore Securities, fell into administration having spent £100 million on the overall redevelopment of the site.
Highcross, a property fund manager, first indicated its intention to sell the development in March 2012 and had invited offers in the region of £50 million.
The building stood empty for nearly five years following renovation works to convert it from the city's former Post Office depot, though it began to fill up when headline rents were reduced from £30 per square foot to around £15 per square foot.
PRUPIM, the real estate investment management arm of M&G Investments, agreed the deal with the building's owner Highcross last week.
Natalie Andrews, associate director at PRUPIM, said: “This well located, excellently redeveloped asset provides an attractive mix of long secure income and asset management opportunities and with a day one income return of 7.3 per cent is a welcome addition to the portfolio.”
PRUPIM was advised by Jones Lang LaSalle and the selling agent was Montagu Evans.