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MAS buys Bank of Scotland Edinburgh home for £71m

By Paul Norman - Tuesday, May 08, 2018 15:00

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JSE- and Luxembourg-listed MAS Real Estate has bought two adjoining office buildings in Edinburgh - Princes Exchange and New Uberior House – leased to Bank of Scotland for £71m from Aerium Finance backed by a £39m DekaBank loan.

MAS, via its subsidiary MAS (IOM) Holdings, has completed a sale and purchase agreement to buy the entire issued share capital of New Uberior House, which owns the two adjoining commercial buildings.

The £71m purchase price was settled in cash.

MAS has agreed £39m of bank lending for the acquisition from DekaBank alongside a net equity investment of £32m, before acquisition costs. The debt is for a term of five years at a margin of 1.5% over LIBOR.

Morné Wilken, CEO of MAS,said: “This further leverages our significant experience in the Edinburghproperty market, having delivered on the award-winning New Waverley mixed-use development.”

The 158,701 sq ft (14,718 sq m) office buildings with 175 parking spaces are located in the heart of the financial district of Edinburgh.

The property is let to Bank of Scotland over several leases expiring in December 2025.

Bank of Scotland is a subsidiary of the Lloyds Banking Group. The passing rent is £4.15m a year.

CBRE brought the buildings to market earlier this year on behalf of Aerium seeking ££68.5m reflecting a net initial yield of 6.03%.

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