Edinburgh's Quartermile 2 office building sold for £28.5m

By The Newsroom
Published 21st Aug 2017, 11:43 BST
Updated 12th Sep 2017, 11:38 BST
UBS Asset Management has acquired Edinburgh's Quartermile 2 office building. Picture: ContributedUBS Asset Management has acquired Edinburgh's Quartermile 2 office building. Picture: Contributed
UBS Asset Management has acquired Edinburgh's Quartermile 2 office building. Picture: Contributed

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One of Edinburgh's major prime office developments has changed hands in a £28.5 million investment deal.

UBS Asset Management said it had completed the acquisition of Quartermile 2 – situated on the site of the former Edinburgh Royal Infirmary – with the deal representing a yield of 5.4 per cent.

• READ MORE: Quartermile lands year’s biggest letting in Edinburgh

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The real estate and private markets arm of the Swiss banking giant’s asset management business has bought the office complex from the Swiss-based fund AFIAA.

Constructed in 2009, the Grade A building is spread over six floors and currently houses five tenants, including legal firm Morton Fraser and the Scotch Whisky Association.

The mixed-use Quartermile scheme comprises more than 1,000 new-build apartments and some 350,000 square feet of office space, together with retail and leisure facilities. Designed by architectural firm Foster & Partners and extending to 19 acres, the development is home to more than 20 businesses currently employing about 2,200 workers.

The deal for the Quartermile 2 building comes amid a dearth of new Grade A stock which property experts believe will continue for some time given the limited development pipeline in the city.