BLME have acquired the head quarters for the Scottish Gas division of British Gas for £26.9m. Darin Partners advised BLME on the transaction and have been appointed as asset manager.
The Foster and Partners designed office building is located on the Edinburgh waterfront. The 91,124 sq ft Grade A office is let to GB Gas Holdings and guaranteed by Centrica plc, a FTSE 100 company. The property has a WAULT1 of 15.8 years to expiry and over 10 years until a break. In March 2019 an extension to the Edinburgh tram line was approved which will provide additional transport links. The building comes with 198 car park spaces.
“This is a compelling investment and aligned with our investment strategy of acquiring income generating assets with index linked rent reviews. The asset is backed by a strong tenant and we are encouraged by their commitment to the building and the continued investment and regeneration of the Edinburgh Waterfront area. The asset was acquired at an attractive price and expect to generate a steady return for our investors.” said Khaled Alanani, head of real estate investments, BLME.
BLME has a well established reputation for real estate finance and investment in the UK. BLME sources and co-invests in commercial real estate opportunities alongside professional investors from the Middle East. Abu Dhabi Islamic Bank provided Sharia’a compliant financing on this transaction.
“Edinburgh is one of the strongest performing office markets in the UK, with overall vacancy currently at 2.9%, the lowest on record, and historically high levels of demand. Prime City Centre Grade A office yields, like many other cities in the UK currently stand at 4.75%. 1 Waterfront Avenue, provides our client with secure long dated income with index linked reviews at an attractive Net Initial yield of 6%." said Darin Partners CEO David Bell.
Darin Partners is a UK real estate advisor that acts on behalf of its clients from the GCC.