Quartermile retail development sold for £3.3 million
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Private investor snaps up retail investment at Gladedale Capital Edinburgh development The retail units let to High Street names Starbucks and Sainsbury’s within Edinburgh’s prestigious Quartermile development have been sold for £3.3 million.
A private Scottish investor client of purchasing agent Ryden bought the 7,000 sq ft retail development at a price reflecting a net initial yield of 4.95%
As well as Sainsbury’s and Starbucks, the retail units within the Quartermile development fronting onto Middle Meadow Walk are also home to upmarket Swedish baker Peter’s Yard.
Leading food and grocery retailer Sainsbury’s leased a 4000 sq ft unit and Starbucks leased a 1,800 sq ft unit next to Sainsbury’s in March this year.
Quartermile is a joint venture development between Gladedale Capital and HBoS.
Colin MacPherson, development director for Gladedale Capital, said: “Quartermile has now established itself as a prime commercial and residential location and we have been overwhelmed by the response to the development by retailers.
“Attracting blue chip tenants such as Sainsbury’s and Starbucks legitimised Quartermile as a retail destination and it was therefore no surprise to see it proving attractive to investors.
“We are now working hard to secure further retail and leisure tenants to the current phases of the development to ensure we deliver on our promise to make Quartermile a true mixed-use location.”
CB Richard Ellis represented Gladedale Capital on the deal, while Ryden represented the purchaser.
Steven Hendry, associate director at CB Richard Ellis said: “Although we were not actively marketing this investment opportunity, we were approached by a number of interested parties and we’re delighted with the enthusiasm shown by potential investors.
“The price achieved represents a yield of just under 5%, which is a tremendous result in the current climate.
“The price paid reflects the high quality nature of Quartermile and demonstrates the multi-let type of product is still popular with investors, despite the difficult market at present.”
Both Starbucks and Sainsbury’s have taken 15 year deals at Quartermile. The two deals came in the wake of the letting of 1,800 sq ft of retail space to Swedish bakers Peter’s Yard. The company became Scotland’s first ever Swedish baker when it moved into its premises at the end of 2007.
Once completed in 2012, Quartermile will feature over 300,000 sq ft of premium office space, over 55,000 sq ft of retail and leisure space, more than 900 new and converted modern apartments and seven acres of landscaped gardens and public space.
More than 150 apartments within the development have already been sold and the first residents have moved in.
Top rated legal firm Morton Fraser has just signed a deal to pre-let the top four floors at the new office building being constructed at Quartermile.
Earlier this year, construction commenced on the 52,500 sq ft, six storey office development, which will further bolster the new business district being created at Quartermile. The Quartermile Two building will also include around 7000 sq ft of retail and restaurant accommodation at ground floor level, which is scheduled to complete in October 2009.
The stunning £450 million Quartermile development is Scotland’s largest urban redevelopment project, on the site of the former Edinburgh Royal Infirmary. It is set to eventually support over 3,800 jobs.
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