TWO prominent commercial buildings in Edinburgh have been sold in deals worth nearly £40 million.
The properties, 7 Castle Street on the corner of Princes Street and Castle Street, and Caledonian Exchange in the city’s Exchange district have been acquired by FSX Holdings and Catella APAM respectively.
Spread over six stories, 7 Castle Street provides more than 40,000 square feet of office and retail accommodation. Tenants include Vodafone, CBRE, and SSE.
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Caledonian Exchange, on Canning Street, comprises nearly 60,000 sq ft of Grade A office space, with occupiers including law firm Lindsays and Young Scot, the youth information platform.
Property firm Knight Frank, which acted for the vendors on both sales, said the deals come as investor interest in “core-plus” assets picks up in the city.
The deals take the value of core-plus deals completed in the city to £100m over the last 12 months, following the sales of Orchard Brae House, Edinburgh Quay 1, and Exchange Tower.
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Alasdair Steele, head of Scotland commercial at Knight Frank, said: “The deals for 7 Castle Street and Caledonian Exchange show that investor demand for offices in Edinburgh remains strong, despite a challenging macro-economic and lending backdrop.
"7 Castle Street is a unique asset, facing onto one of the most popular tourist attractions in Europe, while Caledonian Exchange is among the Exchange’s best-known buildings.
“Combined with other recent deals, around £100 million of core-plus offices have been sold in Edinburgh during the last year. At a time when the ‘flight to quality’ has been a major trend across the UK, the deals demonstrate the resilience and the depth of investor interest in the city, with prime stock relatively limited and the occupier market remaining strong.”
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