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Two Scottish Office Assets Move for $178M

EDINBURGH-The office assets at the mixed-use development known as Crewe Toll deliver a 5% yield for the seller.

By Anita Howarth | Updated on November 21, 2006

EDINBURGH-LaSalle Investment Management has sold two office buildings in Edinburgh to a syndicate of private investors. The price was euro 139.18 million ($178.46 million), reflecting a net initial yield of 5%.

The assets are at Crewe Toll, a mixed-used development to the north of Edinburgh City Centre at the gateway to the Granton Waterfront. They are part of a euro 358-million ($459-million) portfolio that BAE Systems transferred to its pension fund earlier this year in a bid to plug a euro 5.9-billion ($7.6-billion) deficit in the fund. The fund has now sold these through LaSalle, and the buildings have been let to BAE’s Electronics Ltd. subsidiary. That lease, which expires in 2024, guarantees rental uplifts capped at 3% per annum. The current annual rental income from both properties is euro 7.4 million ($9.5 million).

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