Edinburgh Quay 2 Shatters All Rumours of Investor Disinterest, Sells for £21M
February 5th, 2010
Edinburgh Quay 2, a joint initiative development product, was bought for £21.1 million by the Luxembourg-based Cordea Savills European Commercial Fund. Proving all speculators wrong that investors were no more interested in the development, the sale brought in a profit of nearly 6per cent and is expected to be a big boost to the reputation of the new financial district.
The Edinburgh Quay 2 has already attracted many of the big names including firms like Pinsent Masons solicitors and Baker Tilly and is said to be the most extensive shared office project in the region. It was earlier thought that development would be helpful in the growth of the financial district of Edinburgh.
After the emergence of the financial market credit squeeze in 2007 developers have found it hard to shift office space and land with 20per cent of the Edinburgh Quay 2 area still requiring tenants. If sources are to be believed some tenants are even thinking of quitting the general area.
The development site itself is situated near the former headquarters of HBOS before Lloyds Banking Group bought it.
The development was managed by the Edinburgh Quay Ltd., who claim that the building had several people and organizations bidding for it even before a formal advisement was released to attract potential buyers.
But according to a commercial property insider, the development is not a very good deal as it is too close to the Bank of Scotland offices, which be emptied by the bank very soon leaving the nearby area vacant, a scene that prospective tenants may find very unappealing.
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