10th February 2014

Sale of Caledonian House, Aberdeen

The office and retail investment has been sold to Tesco Pension Fund on Christmas Eve 2013 for a price of £15.3 million, reflecting a net initial yield of 6.67%.

The 4 upper office floors, totalling circa 44,000 sq. ft. are let to Wood Group Kenny Caledonia Limited on a new 10 year lease with the 3 ground floor retail units, let to Pret a Manger and British Heart Foundation.  The property, which is currently being comprehensively refurbished by Ediston, has a total projected income of £1.08 million per annum.

Ediston Real Estate are staying involved, managing the refurbishment works to facilitate the new lease to Wood Group Kenny, with completion of the Works due in February 2014.  Ediston acquired the property in November 2012 for £7.75m.