US investor and asset manager PGIM Real Estate has bought the Argyle House office building in Edinburgh, UK, from global real estate investor Kennedy Wilson, for an undisclosed sum.
The 11-storey building consists of 20,439 m2 of offices and is located at 3 Lady Lawson St, close to Edinburgh’s key tourist attractions and major student hub.
Argyle House is situated halfway between Waverley and Haymarket railway stations and is well served by the local bus and tram network.
Charles Crowe, head of UK investment at PGIM Real Estate, said: ‘Supported by the strong underlying fundamentals of the city, Argyle House combines a secure income stream with fantastic long-term potential for redevelopment and regeneration in the heart of Edinburgh city centre.’
Matt Milroy, head of asset management, UK, at Kennedy Wilson, added: ‘We acquired Argyle House opportunistically as part of a larger non-performing loan portfolio in 2014, identifying a strong underlying asset in a fantastic location generating government-backed income. Having reached the end of our business plan for Argyle House, we’ve taken the opportunity to realise our investment with the sale demonstrating the continued strength of the Edinburgh market.’
In 2016, UK infrastructure investor Equitix was poised to acquire Argyle House for £40 mln (€45.8 mln) but the deal fell through.
PGIM Real Estate was advised by hendersonherd and Brodies, while CBRE and Goodwin Proctor/Burness Paull advised Kennedy Wilson.