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Tuesday, September 12, 2023

Pentland Gait in Edinburgh sold for £16.85 million

EDI has sold Pentland Gait, a 62,000 sq ft office development in Edinburgh, for £16.85million to a private Irish investor. The price paid reflected a net initial yield of 6%.

Pentland Gait comprises three high quality office pavilion buildings situated at the junction of the A71/A720 city bypass and M8 interchange on the west of the city.

Internally, the buildings provide good quality open plan office space, extending to 62,603 sqft plus 275 car parking spaces.

The accommodation is let to Sykes Global Services Ltd, Scottish Water and Capital Bank plc on leases expiring between 2017-2021, with some tenant break options in 2011/2012. The total income generated by this investment was £1,066,525, which reflected rental rates of between £16 and £18 per sqft.

Commenting on the sale, Ian Wall, Chief Executive of EDI pointed out EDI's proven record of success has allowed it to generate significant value for its shareholder, The City of Edinburgh Council. He said: "EDI's valuable property portfolio, developed over the last 10 years, has enabled us to dispose of selected assets at the top of the market, to generate a special dividend to our shareholder, the Council.

"We have a strong and deep portfolio and will continue to develop this in the years ahead. Our development role is unaffected and we presently have both residential and industrial schemes on site.

"Several major projects are in the pipeline including Freer Street in the city's Fountainbridge area and Albion Road, while our new company, PARC, is going on site next year in Craigmillar with three projects with construction costs in excess of £15 million."

Montagu Evans marketed the site for EDI and there were expressions of interest reported from a number of parties.

The purchasers were represented by James Barr.

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