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 company provides comprehensive brokerage services, specialising in commercial and residential property mortgages, as well as various types of complementary insurance. Utilises a network of third-party and directly employed brokers based across th...
LEASEHOLD
A multifaceted organisation operating with several divisions providing a comprehensive, specialist offering. Provides a variety of tax compliance and advisory services, including tax returns, tax investigations, asset tracing and cryptocurrency advic...
LEASEHOLD
Offers a variety of core consultancy services, including professional services, automated software, managed services and provision of software licenses. Caters to 12 active, international clients and benefits from high retention rates, with all of it...
RELOCATABLE
28
|
Jun
|
Administrators hopeful of finding buyer for Bristol transport firm | ADMINISTRATION
Bristol-based transport, trucking and railroad firm Toogood ...
27
|
Jun
|
Administrators seek buyer for listed pharmaceutical company | ADMINISTRATION
Listed pharmaceutical firm 4D Pharma Plc has fallen into adm...
24
|
Jun
|
E-commerce imports retailer up for sale for £1.6m | BUSINESS SALE
Deals Incorporated, a Manchester-based e-commerce retailer t...
Sign up to receive our acquisition alert emails to get your FREE guide
26
|
Sep
|
RBS non-core asset sale continues with Glasgow City Hilton | COMMERCIAL PROPERTY
The Royal Bank of Scotland has continued with its "non-core"...
22
|
Jun
|
Looming rent day may put retailers to the test | BUSINESS NEWS
The high street is bracing itself for another wave of compan...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources