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Koreans take the high road for Scottish debut

New-Uberior-House

2 April 2016 – by Sheka Vyas

Hyundai Fire & Marine Insurance is in talks to buy a prime Edinburgh office building in what would mark the first major real estate acquisition by a South Korean investor in Scotland.

New Uberior House

The insurer is in exclusive talks with Aerium to purchase New Uberior House and the adjoining Princes Exchange in an off-market deal for more than £70m – reflecting a circa 5.25% yield.

Hyundai is being fronted by Knight Frank Investment Management, which also bought 21 Lombard Street, EC3, for £125m on its behalf last year.

New Uberior House and Princes Exchange at 1 Earl Grey Street total 158,000 sq ft and are let in their entirety to Bank of Scotland for 10 years.

Aerium bought the property from Invesco in 2014 for £61.8m, a 6.29% yield.



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Some transactions in Scotland having stalled this year as investors await the outcome of the EU membership referendum and Scottish parliamentary elections. However, Hyundai’s interest shows the enduring appeal of the country, and Edinburgh in particular, to foreign investors.

Overseas investors accounted for 41% of total investment in Scottish commercial property in 2015, according to Savills.

Deka recently completed its purchase of Edinburgh Council’s 202,000 sq ft Atria scheme for £100m and Triuva has acquired M&G’s Quartermile Four for £68m.

CBRE is acting for Aerium; Knight Frank is acting for Knight Frank Investment Management and Hyundai.



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