The Edinburgh headquarters of aviation business John Menzies PLC has changed hands for £10.3 million.
The new owner of the 43,676 sq ft office building at Lochside Avenue in Edinburgh Park is Glasgow-based commercial property investor Regional REIT.
Regional, whose assets are managed by London & Scottish Property Investment, will make an initial yield of 8% on the office which is fully let to Menzies for the next three years and nine months at £880,000 per annum.
Stephen Inglis, CEO of London and Scottish Property Investment Management, said: “This is a prime asset in the best position on the internationally renowned Edinburgh Business Park. It is let to a quality tenant and we have been able to take advantage of uncertainty in the UK political and economic outlook at the time of agreeing this deal.
“This has allowed us to acquire an asset on Park dominated by large institutional investors and a market that was simply not previously within our reach given our investment criteria and returns requirements.
“This acquisition demonstrates our ability to secure deals on favourable terms and offers us an accretive asset management opportunity in the medium term to optimise value for our shareholders. Further, we are delighted to incorporate another major letting to a significant international blue chip tenant within our portfolio.”
Regional REIT is an AIM-listed company focused on a portfolio of mainly office and industrial property worth more than £700 million.
The three-floor John Menzies head office building has a gym and 42 parking spaces. Menzies sold its famous newspaper and magazine distribution business in 2018 to private investor Endless and now concentrates on services such as baggage and cargo handling and refuelling at airports worldwide.