On behalf of Kames Property Income Fund, international real estate advisor Savills has sold 140/141 Princes Street, Edinburgh, to Whinstane LLP, part of Thistle Properties Group, for £2.55 million, representing a net initial yield of 5%.

Situated on the western end of Princes Street, the property totals 6,926 sq ft (645 sq m) of space, comprising ground floor retail with offices and ancillary space on the upper three floors. The entire property is let to Tesco Stores Ltd on a 20-year lease from 2012 at a rent of £135,000 per annum, with a tenant only break option in 2022. The 2017 review of the lease is index linked to the Retail Price Index (RPI).

Mark Fleming, director of investment at Savills Scotland, comments: “A prominent retail site on one of Edinburgh’s main thoroughfares, 140/141 Princes Street is a solid investment opportunity with a secure income stream.  The sale represented a good prospect for the vendor to trade out of a smaller lot size in the fund at a profit whilst offering the purchaser a well secured prime investment opportunity.”

 Whinstane was represented by Montague Evans.