Orchard Street acquires Holyrood Park House, Edinburgh

Orchard Street Investment Management LLP, the specialist commercial property investment manager, has acquired Holyrood Park House in Edinburgh on behalf of St James’s Place property funds for £8.715 million, reflecting a net initial yield of 9.25%. The vendor was Henderson Global Investors.

Holyrood Park House provides 46,680 sq ft of flexible, Grade A office accommodation and 12 on site car parking spaces. The multi let property has an annual rental income of £851,603. Tenants include Citigroup, Intersystems Corporation, Universities Scotland, the Royal Pharmaceutical Society and ESRI.

Situated less than 10 minutes walk from Waverley Railway Station, the Holyrood area is an established city centre business location that boasts a number of national and international organisations including the Scottish Parliament, the Scotsman Group, BBC, University of Edinburgh and the City of Edinburgh Council.

Commenting on the acquisition, Barney Rowe, Partner at Orchard Street said:

“Holyrood Park House occupies an excellent position in the heart of Edinburgh’s political district and presents significant asset management opportunities. This is a high-quality asset with strong reversionary potential as current rents are at a £10 per sq ft discount to traditional core rental levels.”

Martin Payne at Henderson Global Investors said:

“This was a strategic sale for the Fund having completed the short term business plan of achieving 100% tenant occupation.”

JLL acted on behalf of Orchard Street and Cushman & Wakefield for the vendor.