Ardstone Capital, the private investment manager, and CBRE Global Investment Partners (“CBRE GIP”) have completed the purchase of the Citymark building, 150 Fountainbridge, Edinburgh for £33.7m on behalf of their UK Regional Office Fund. This is the second purchase for the Fund following an acquisition in July of the Sentinel building, 103 Waterloo Street, Glasgow for £25.2m thereby bringing its combined purchases in recent months to £58.9m.
The 102,115 sq ft Citymark building is a Grade A office building in the financial district of Edinburgh let to Lloyds Bank of Scotland for a further 12 years. The purchase price of £33.7m reflects a net initial yield of 7.2%.
The Sentinel building is a 84,104 sq ft Grade A office asset located in the city’s traditional core. The tenants include Morgan Stanley, AON and the British Steel Pension Fund and Ardstone is in the process of letting the last remaining floor in the building. This will improve the running yield to over 7.4%. The £25.2m purchase price reflects a net initial yield of 6.9%.
The Ardstone UK Regional Office Fund has been established as a separate account by Ardstone Capital for investment by clients of CBRE GIP. The vehicle is continuing to target the acquisition of core office assets across the major UK regional cities.
Ardstone Capital’s UK Managing Director, Craig McDonald, said “we are delighted to have acquired these high quality assets and are actively pursuing further acquisitions for our Regional Office Fund”.
Alex Bignell, Head of UK, CBRE GIP commented: “The Regional Office Fund is a further example of our successful new approach of forming exclusive ventures with specialist managers to enable our clients to access our preferred niches of the UK property market.”