A
commercial development firm has sold a major Edinburgh asset to a foreign
property investment firm.
The Quartermile II development has been sold by Gladedale Capital to Swiss pension fund AFIAA for £23 million, according to the Scotsman.
This deal represents a net yield of 6.75 per cent for the seller - a welcome boost for the whole Quartermile scheme which has been badly hit by the recession.
Reports suggest that the £450 million is five years behind schedule, with work on the next set of commercial developments not set to begin for another two years, the publication notes.
Gladedale Capital has admitted it needs to attract the interest of a major hotel chain in order to really get the commercial development back on track.
Recent figures from the Investment Property Databank indicate that the UK commercial property market is stalling, with asset value growth rates falling to just 0.2 per cent in July.
Posted by Lisa Fear.
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