Two Edinburgh office properties change hands for £40m

Two Edinburgh office properties change hands for £40m

7 Castle Street

In two separate transactions totalling nearly £40 million, two Edinburgh office properties have been acquired by FSX Holdings and Catella APAM.

The properties in question, 7 Castle Street and Caledonian Exchange, form part of a growing trend of investor interest in core-plus assets in Edinburgh.

The six-storey 7 Castle Street, located at the junction of Princes Street and Castle Street, comprises 40,249 sq. ft. of retail and office space. Its prominent location makes it attractive to current tenants like Vodafone, CBRE, and SSE.

The Caledonian Exchange, situated in the city’s Exchange district, boasts 59,710 sq. ft. of Grade A office space and houses notable occupiers including Lindsays LLP and youth platform, Young Scot.

Knight Frank represented the sellers in both deals, while GLJ Property and EYCO were responsible for advising the purchasers on 7 Castle Street and Caledonian Exchange, respectively.

Two Edinburgh office properties change hands for £40m

Caledonian Exchange

With these recent acquisitions, the total value of core-plus office deals in Edinburgh has soared to £100m over the past year. This figure includes the sales of Orchard Brae House, Edinburgh Quay 1, and Exchange Tower.

Alasdair Steele, head of Scotland commercial at Knight Frank, said: “The deals for 7 Castle Street and Caledonian Exchange show that investor demand for offices in Edinburgh remains strong, despite a challenging macro-economic and lending backdrop.

“7 Castle Street is a unique asset, facing onto one of the most popular tourist attractions in Europe, while Caledonian Exchange is among the Exchange’s best-known buildings.

“Combined with other recent deals, around £100m of core-plus offices have been sold in Edinburgh during the last year.

“At a time when the ‘flight to quality’ has been a major trend across the UK, the deals demonstrate the resilience and the depth of investor interest in the city, with prime stock relatively limited and the occupier market remaining strong.”

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