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News Release

Edinburgh

Edinburgh Council sells Atria office development for £105m


EDINBURGH, 11 APRIL 2016: The City of Edinburgh Council has sold the Atria office development to a German investment company for £105 million.

The sale to Deka Immobilien, a global real estate investment company, is the culmination of a sales process launched last October, which the council said generated "significant interest".

Edinburgh Council said proceeds from the sale will be used to repay the monies borrowed to facilitate the development and bolster its Strategic Development Fund.

Completed in 2013, the 200,000 sq ft Atria, split between two buildings - Atria One and Atria Two - was developed and funded by the City of Edinburgh Council with part-funding from Scottish Enterprise.

The Grade A development was at the time the largest speculative office development of more than 100,000 sq ft outside of central London.

Cllr Barrie, Convener of the council's economy committee, said: "I'm delighted that we have concluded the sale of Atria.

"This is a further endorsement of the Council's decision to create an innovative funding package to develop much needed Grade A office space in the city to attract new, and retain existing, businesses in the Capital while also cross-subsidising the cost of an expansion to the Edinburgh International Conference Centre (EICC).

"The fact that we have been able to attract investment into Edinburgh from a major overseas real estate company is testament to the quality of the building and its occupiers.

"Our plan was always to sell Atria once the development was completed and the economic conditions were right to achieve the best possible return for the Council's investment and I believe we have achieved this."

Colin Finlayson, Director of JLL added:

"The sale of Atria underlines the robustness of demand for prime assets in Edinburgh and an excellent return on investment for the Council."

JLL, Montagu Evans and Shepherd & Wedderburn acted for the City of Edinburgh Council and Savills, CBRE and HBJ Gateley represented Deka Immobilien.

ENDS