West Midlands Pension Fund, clients of CBRE Global Investors, advised by Knight Frank LLP, have acquired Citypoint, a prime multi-let office building in the Haymarket district of Edinburgh, from Rockspring Hanover Property Unit Trust (RHPUT) for £14.475 million.
The building is located next to Haymarket train station, Edinburgh’s main commuter rail station, and provides 41,955 sq ft of high quality office accommodation. The building is fully let with a strong tenant line up including BDO, Harper Macleod and NATS. Citypoint generates an annual income of £885,510 and the purchase price reflected a net initial yield of 5.76%, after allowing for standard purchaser’s costs.
Lucy Perry, Senior Associate at CBRE Global Investors commented “This acquisition fits well with the WMPF’s strategy of buying modern, multi-let assets in improving locations.”
Alasdair Steele of Knight Frank LLP, who advised the purchaser said “we think this will be a strong strategic purchase for West Midlands. There are clear signs that the imbalance between supply and demand in the Edinburgh office market is starting to lead to rental growth.”
Mischa Davis, fund manager, of Rockspring Hanover Property Unit Trust commented “The tram and train station development has improved Haymarket as an office location. Letting the final vacant floor has allowed us to sell Citypoint and complete our strategic business plan.
Knight Frank LLP acted on behalf of WMPF/CBRE Global Investors, with Eric Young & Co representing Rockspring Hanover Property Unit Trust.
