Thu, 16 Dec 2021 | COMMERCIAL PROPERTY
Privately owned investment firm Topland Group has acquired two office assets in a deal totalling £31.4 million. The assets are 145 Morrison Street in Edinburgh and Citygate II in Newcastle (pictured above), with both being acquired from the Ediston Property Investment Company REIT (EPIC).
145 Morrison Street offers close to 27,000 sq ft of Grade A office space located nearby to Edinburgh’s financial district. The site is let entirely to Capita until July 26 2030, at total passing rent of £740,000 per year, a rental rate of £27.5 per square foot. Topland acquired the office for £12.06 million, which reflects a 5.8 per cent net initial yield.
Located in the heart of Newcastle, close to both The Helix, Innovation Quarter and Strawberry Place, Citygate II offers around 63,000 sq ft of Grade A office space set over a ground floor and five upper floors. The building is entirely let to three tenants, generating annual rent of £1.592 million, with the £19.375 million acquisition price representing a 7.8 per cent net initial yield.
For Topland Group, the acquisitions bring its total outlay over the course of 2021 to more than £240 million, with the group continuing to target single and multi-let investments in the office, retail and industrial spaces.
For EPIC, meanwhile, the sales appear to form part of its recently announced strategy to offset office-based assets and reinvest the returns in retail warehouses, which it views as more aligned with its asset management style and more suited to post-COVID retail.
Toplan Group CEO and Chairman Sol Zakay said: “These are quality assets, very well located in dynamic office markets. They provide a strong WAULT [weighted average unexpired lease term], a strong tenant base and also offer optionality in terms of investment strategy.”
“These latest acquisitions come off the back of a very busy year for Topland. On the equity side we have deployed over £240m in 2021 – our investment strategy continues to be deal-led with single and multi-let investments across the retail, industrial and office sectors.”
“We have also been deploying capital through joint ventures in both London and the regions, again across a range of sectors and including development opportunities. We remain acquisitive and will be looking to continue with our investment drive into 2022.”
Savills acted on behalf of Topland during the acquisition and the real estate agency’s joint head of UK investment, Richard Merryweather, commented: “Both buildings are positioned in prime locations and are perfectly placed to capitalise on investment into the wider area with significant rental growth potential.”
One of the best ways to find properties below market price is to look at recent administrations.
The Practice was established by the two present Partners in 1983. The Partners wish to retire although they are prepared to discuss individually proposals to continue working for an agreed time after disposal to assist with the transfer of the goodw...
This is a well-established, modern and progressive LTD Solicitors’ Practice based in the Rhondda Cynon Taff area, servicing Aberdare, Pontypridd, Talbot Green but also Cardiff and nationally. It is worth noting that they are Lexcel accredited and hav...
This Practice is situated virtually in the centre of this market town which has a population of around 17,500 and is on the main line rail network which connects through Plymouth, Exeter, Taunton and Bristol to Reading and London. This is a practice...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.