Knight sets sights on western refurbishment
● Property group buys Edinburgh Park offices to let after modernisation
Knight Property Group has added to its Capital portfolio with the purchase of
4-5 Lochside Avenue in the city’s Edinburgh Park.
The property was purchased from a pension fund client of Lasalle Investment Management. The current lease ends this month and Knight intends to carry out a “comprehensive refurbishment”, with a view to offering letting space back to the market in early 2021.
The business park is situated west of the city and is home to 7,000 employees.
Surrounding occupiers include JP Morgan, Regus, HSBC and Royal Bank of Scotland.
Edinburgh Park benefits from good local amenities, including the Gyle Shopping Centre and Hermiston Gait Retail Park.
Howard Crawshaw, director of Knight Property Group, commented: “We are excited about the acquisition of this property and delighted to have acquired what we believe is one of the strongest properties in Edinburgh Park, given its configuration and location adjacent to the tram stop and other amenities.
“We intend to carry out a comprehensive refurbishment to the property and reposition what is currently a tired asset, while incorporating all the modern functions and facilities that businesses and employees would expect in the current climate.”
Royal Bank of Scotland provided Knight Property Group with a funding package for the purchase of the Lochside Avenue site. Jamie Drummond, real estate finance director at Royal Bank of Scotland, said: “We work very closely with the team at Knight to understand their business and support their plans, so it has been really rewarding to see this deal now conclude. The team at Royal Bank of Scotland had the expertise to understand Knight’s requirements and provide a high level of market insight, as well as financial support, and we look forward to seeing the company grow as one of the leading commercial property developers in the market.”
The pavilion-style building at Lochside Avenue has 40,992sq ft of open-plan office space and, upon completion of the refurbishment, it will deliver a contemporary and modern working environment to tenants.
It is expected to be an attractive prospect for many companies due to its proximity to Edinburgh International Airport,the City Bypass, Edinburgh Park railway station and the tram network.
Knight has been active in the market over recent months, and – aside from speculative office developments in Aberdeen, where the company originated – it has expanded its involvement in the Capital.
The completion of work on the company’s speculative city centre redevelopment of the office block 4 North on St Andrew Square in spring 2019, was added to later in the year when Knight purchased property on nearby Frederick Street.
At the end of 2019, the firm paid in excess of £8 million for adjoining properties at number 67 and 69 George Street, the renowned Capital shopping street, comprising retail units at ground and basement floors and selfcontained office suites above.
“We intend to re position what is currently a tired asset, while incorporating modern functions and facilities”