Global asset manager, Carlyle Group, has sold its award-winning office block in the centre of Edinburgh to Rockspring’s UK Value Two Fund for £56m. The property is the eighth British asset acquired by the fund and brings its holding to £260m. The Scottish retail and business space specialist, Eric Young & Co, acted for the buyer.
The latest addition is the second Scottish property bought by the Rockspring fund – formed eight months ago – and which is the fastest fund ever raised in Rockspring’s 30 year history.
Providing 190,846 sq ft of Grade A office space, One Tanfield received several industry awards for a recent upgrade to its three floors which made it particularly attractive to businesses in the telecommunications sector.
The building is currently 80 per cent let to eight tenants including Dell; the online ticket seller Trainline.com; Aecom the architecture, design, engineering, and construction services group, and FNZ, a provider of integrated wealth management platforms. Three office suites totalling 38,281sq ft are currently available.
“Tanfield provides us a robust cash flow and the opportunity to add value through lease up of the existing space and facilitating tenant expansion within the building,” commented Richard Bains, Rockspring partner and fund manager of the UK Value Fund series.
“Alongside the other office properties already in the portfolio — Peter House in Manchester and Guildhall in Glasgow — this acquisition broadens the fund’s exposure to the strong UK regional office market which we believe offers compelling market dynamics and rental growth potential,” he added.
Rockspring recently announced the closure of the seven year Value Two Fund which raised a total of £342m from its 11 investors. With its European headquarters in London, Rockspring also launched its TransEuropean VI Fund this month with a target equity of £286m to invest in offices and retail and industrial properties across mainland Europe and the UK.
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