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£21m Cordea sale may prove Quay to success

posted 30 Jan 2010, 10:35 by David Rintoul   [ updated 22 Nov 2011, 08:08 by TollcrossOnline Admin ]

A prime development in Edinburgh's Fountainbridge has been sold for £21.1 million, providing a boost for a new financial district, which many feared was losing its appeal to investors and tenants.

Edinburgh Quay 2, a joint venture between Miller Developments and British Waterways, has been sold to the Luxembourg-based Cordea Savills European Commercial Fund. The deal reflects a yield of 6.1 per cent.

The property, which houses several firms including Baker Tilly and Pinsent Masons solicitors, is one of several major office developments in the area, which it had been hoped would extend Edinburgh's financial district beyond The Exchange area.

Since the onset of the credit crunch in 2007, developers have struggled to shift land and office space. About 20 per cent of the 60,134sq ft Edinburgh Quay 2 remains to be let, and some tenants in surrounding developments are looking to leave the area.