M&G Real Estate has acquired a four-acre mixed-use development site - The Haymarket - in Edinburgh, Scotland, for £49 mln (€56 mln).
With a gross development value of circa £280 mln, the site has planning permission for the development of three Grade A office buildings totalling 350,000 sq ft (32,500 m2), provision for 40,000 sq ft of retail and leisure space, a 190-room hotel and a 172-room aparthotel.
The new site provides an opportunity to expand the Scottish capital’s growing financial quarter - the Exchange District – which is located next to Haymarket train station.
The acquisition extends M&G Real Estate’s office development portfolio in Scotland and follows deals to fund the construction of Quartermile 3 and Quartermile 4 Edinburgh, in addition to plans to provide a £100 mln workplace at The Grid in Glasgow.
Chris Perkins, head of business space, M&G Real Estate, commented: 'With the current supply/demand dynamics, bringing 350,000 sq ft to the market will reinforce the Exchange District as a prime hub for business in Europe. Whilst Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities.'
He added: 'As a provider of investment solutions across geographies, sectors and product types, this investment reinforces our strategy of acquiring assets with potential for sustained income, strong capital appreciation located in targeted growth zones.'
Savills represented M&G Real Estate.