The landmark building is prominently located at the corner of Semple and Morrison Streets, which leads to Haymarket Railway Station. The surrounding business district is home to leading financial institutions such as Scottish Widows. Climate Change Capital placed the Edinburgh Business Centre on the open market last autumn, having purchased the building for £23.89m in 2009.
During the period of ownership, CCC has invested in new equipment and implemented systems that have reduced the carbon footprint of the building by almost 30%. Having analysed the local occupational market, AXA is confident that the Morrison Street office rental will not only generate a secure income but that there is scope for added rental uplift in the medium term.
AXA Real Estate's Head of UK Transactions, Huw Stephens, commented on the deal that "3-5 Morrison Street with its prime location, strong tenants, potential of rental growth and sustainability credentials, all within a high quality modern building, fully meets our clients' requirement for exposure to Grade A office investments in the UK's major business hubs."
Funding for the acquisition came from the AXA’s Caesar Fund which was launched in Italy in 2012. With €330m of capital from institutional investors, the closed ended fund targets prime office buildings in across the Eurozone and the UK.
Giorgio Pieralli, Fund Manager of the Caesar Fund, said "The purchase of this asset demonstrates our ability to source core investment-grade product in the UK at a time when an increasing number of investors, driven by the tightening of yields in Central London, are seeking returns in the UK's other prime cities and fits perfectly with both the Fund's strategy..."