Buccleuch Property has sold its investment at Shawfair Park, Edinburgh to Middle Eastern investor, Placid Invest for £14.2m, achieving a strong yield of 5.85%.
The 55,000 ft office and warehouse facility sits at the entrance to Shawfair Park and is currently the headquarters of the Scottish Qualifications Authority (SQA), the national body for the assessment and accreditation of non-degree qualifications in Scotland.
Buccleuch delivered the building in 2011, securing a pre-let to the Scottish Ministers on behalf of the SQA before completion. The team has successfully asset managed the building during this time and in September this year, the lease was re-geared to provide a term certain of 20 years, at which point the investment was put on the market.
Placid Invest has a track record of investing in UK commercial property, but this marks the company’s first investment in Scotland.
Phil Eves, Director at Buccleuch Property, commented: “We received excellent levels of interest in the building and were able to secure a deal in a relatively short timescale. Our asset management expertise allowed us to effectively secure a long-term tenant and deliver a bespoke facility, before taking a strong offering to market with guaranteed income from a government covenant.
“We continue to look across the UK for similar projects to invest in, enabling us to demonstrate our full range of capabilities across development, asset management and investment.”
Agents JLL and Montagu Evans acted on behalf of Buccleuch Property, while Property Vision acted for Placid Invest.