A HISTORIC Edinburgh landmark building is set to be sold, according to reports.
Waverley Gate, an A-listed Renaissance building, stands on the corner of North Bridge and holds the offices of several international companies.
A report by Green Street News claims that Kennedy Wilson, a real estate company and the building’s owners, are set to sell the property to California-based Melford Capital for £85m.
It states that the sale would be “one of the biggest Scottish office deals in many years”.
Kennedy Wilson purchased the property in 2022 for £78m.
It was reported: “Melford Capital, which is building a reputation for acquiring larger lot size regional offices while there is a liquidity crunch, is in talks to purchase Waverley Gate from Kennedy Wilson.
“A deal at around the £85m mark would reflect a net yield of circa 7%.”
The building was built in the 19th century. C: Google Maps
Mike Pegler, of Kennedy Wilson, said at the time of the 2022 purchase that “this acquisition reflects our view that, at current pricing levels, there is attractive value in the UK office market particularly for assets located in major employment hubs with high-quality educational institutions”.
He added: “Waverley Gate immediately adds solid recurring income from a strong tenant base and presents multiple opportunities to grow NOI and asset value by further enhancing environmental credentials and overall management of the property.”
Current tenants in the property include several commercial giants such as Amazon, H&M, and Microsoft, as well as offices of the NHS and the Scottish Government.
It is unknown whether the sale would impact the tenancy of the listed companies.
Waverley Gate is next to Waverley Station and near the St James Quarter shopping store, which holds the John Lewis department store.
CBRE and Kennedy Wilson have been contacted for comment.
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