German real estate fund manager Deka Immobilien has purchased the Atria office and retail property in Edinburgh for £105.3 million (€130.2 million; $147.7 million).
Frankfurt-based Deka acquired the site, which is located in Edinburgh’s Exchange district, one of the Scottish capital’s financial centers, from Edinburgh City Council.
The two buildings, Atria One and Atria Two, together total approximately 200,000 square feet and are currently home to ten tenants including PwC, IBM, Aon, Brewin Dolphin and The Law Society of Scotland, while retail occupiers include Co-operative Food and Café Klaris.
Deka purchased the property, which was constructed in 2013, for its Deka-Immobilien Europa open-ended mutual real estate fund, which focuses on investments in Germany, Europe and the rest of the world.
John Heaver, director of Savills, said: “While the majority of space is well let, the leasing fundamentals in Edinburgh, where demand for prime office space increased by 44 percent in 2015, are encouraging for the vacant accommodation. Moreover, Deka was attracted to the comparable good value as Scotland’s investment market continues to trade at a discount to the rest of the UK.”
According to Savills’ own research, Scotland’s investment market continues to attract increasing levels of international interest with overseas investors now taking a 41 percent share of total investment in Scottish commercial property in 2015.
Real estate services provider Savills, property services firm CBRE and law firm HBJ Gately advised Deka while Edinburgh City Council was advised by chartered surveyors Montagu Evans, commercial and residential property services JLL and law firm Shepherd & Wedderburn.
In one of its most recent deals, Deka bought the Mac 567 office complex in Milan, Italy, for approximately €115m from Doughty Hanson & Co European Real Estate II this year.
While last year, Deka acquired the Whitewater Shopping Center in Newbridge, County Kildare, Ireland, for €180 million.
At the end of 2015, Deka had €29 billion of property assets under management.