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Thursday, March 02, 2024

Thistle Property Group buys 4m Edinburgh office building

Standard Life Investments has sold 116 Dundas Street, Edinburgh, to Thistle Property Group for 4.125 million, reflecting a net initial yield of 6.43%. Upon letting the vacant floor the yield will rise to around 7.5%.

The open plan office building extends to approximately 1,792 square metres (19,290 sq ft) and is currently multi-let with expiry dates of leases ranging from 2007-2013. Tenants include Robins McTear, Momentum Financial Services Limited and BUPA Investments Limited.

The accommodation is let at an average of 15 per square foot and the purchaser is proposing to upgrade elements of the property and let the remaining lower ground floor which is currently vacant.

Colin Finlayson from JLL said: "This is an interesting purchase as it gives Thistle Property Group an active management asset while providing an attractive initial yield. The Group is in a position to take advantage of the under supply of office accommodation in the city centre which is expected to impact on the market during 2006."

Derek Stephen of Thistle Property Group added: "We were attracted to this investment because of its proximity to the city centre and the fact that it offers small, flexible floorplates at an affordable rent with excellent parking provision."

Gavin Willins of CB Richard Ellis commented: "The property became too small for our client's portfolio and they decided sell on the back of the current strength of the occupational and investment markets.

"We received strong interest from investors and residential developers and, ultimately, the building's attributes for providing affordable open plan office space close to the city centre won through."

CB Richard Ellis acted for Standard Life Investments and Jones Lang LaSalle represented Thistle Property Group.