Climate Change Capital is buying 3-5 Morrison Street in Edinburgh from Hermes Property Unit Trust for £23.9m (€28.1 million; $39 million).
The deal is the second for Climate Change Capital’s property fund since it raised £50 million last year.
Its debut deal was announced this March when it revealed the acquisition of a prime office and retail building in Birmingham’s central business district.
The Edinburgh property comprises 57,000 square feet of office space let to Franklin Templeton Global Investors until 2021 and a smaller component of retail space let to Sainsbury’s until 2022. The net initial yield is 7.39 percent.
Tim Mockett, joint managing director of the firm’s property team, said in a statement that the fund was working with the occupiers to achieve improved sustainability and reduce operating costs.
Joint managing director, Esme Lowe, added the vehicle might look at higher-risk profile opportunities as part of the investment programme.
Climate Change Capital is an investment bank focused on clean energy and a low carbon economy. Investors in the property fund include Dundee-based Alliance Trust, Dutch banking group SNS Reaal, Australian investor IAG, and Stanhope, the UK property company.