Commercial Property News

Leading UK law firm, Shepherd and Wedderburn has advised Southside Capital Limited on three deals which together see over 180,000 sq ft of property sold for £81.4m and a further 50,000 sq ft let at Quartermile - Edinburgh's premier urban development area.

Acting for Southside Capital, a joint venture between Gladedale and Bank of Scotland, the firm's property team has advised on:

The sale for £21.4m of a planned seven-storey building, with a target of over 60,000 sq ft, to The Ascott Group for the development of the 'Citadines Edinburgh Quartermile' serviced residence. The 107-bed residence, which will be refurbished by Ascott for around £3.3m, marks the company's first acquisition in Scotland. The hotel is expected to open in mid-2009.

The £60m sale of Q2, a Norman Foster designed building at One Quartermile, to Norwich Property Trust Limited.

The lease of 50,000 sq ft, part of the Q2 building, to Maclay Murray & Spens LLP. Rental on the MMS space, which is spread over three floors of the building and includes 10 parking spaces, will be determined on completion of the property.
According to Nick Ryden, property partner at Shepherd and Wedderburn whose team acted, Quartermile presents major planning and construction issues. He commented: "We were able to bring together our planning and construction specialists in addition to property lawyers to achieve results for our client in what is a highly complex project."

He continued: "The deals illustrate signs of a pick up in the Edinburgh market, particularly in mixed-use developments. Creative and innovative developments are proving very attractive to both home grown and international investors, and by offering the right balance between residential, business and retail in a prestigious city location, Southside Capital has managed to get the Quartermile offering just right for today?s keen market."

This deal adds to Shepherd and Wedderburn's recent track record for key property deals, including:

The £680m transfer of almost one million square feet of retail property, and refinancing of Fort Kinnaird Retail Park, Edinburgh and Glasgow Fort Retail Park, on behalf of British Land/Hercules Unit Trust.

The lease, for McGrigors, of 36,500 sq ft over two floors at 141 Bothwell Street, Glasgow, for a rental of £912k per annum.

The deal which sees legal firm Biggart Baillie become the first tenant in Lochrin Square - the first building in Edinburgh's Exchange district. The £50m development is being delivered through a joint venture between Gladedale Group and Scotmid, and is expected to complete in October.