Ryden - Offices Development - Edinburgh, Calton Square

Date: 03 Apr 2001

Pillar Property PLC and Parlison Properties Limited are pleased to announce the forward sale of Calton Square, Edinburgh to the Matrix Calton Square Limited Partnership, a syndicate arranged by Matrix-Securities Limited. The investment transaction was agreed at a consideration of £65M including syndication costs, representing a net initial yield to the purchaser of 6.62%.

Scheduled for completion in March 2002, the property will be headquarters to leading fund manager Baillie Gifford and will represent a landmark development comprising approximately 152,000 sq.ft of air-conditioned office accommodation with additional storage and private car parking for 30 vehicles. Specified to the highest contemporary standards the building will provide individual floor plates up to 29,181 sq.ft accessed through two impressive entrance cores.

The investment transaction follows the announcement in early January of the pre-let to Baillie Gifford of over 106,000 sq.ft. for a term of 20 years with effect from completion at a rental of £27 psf. Approximately 45,000 sq.ft over two levels remains available and is being marketed by Ryden and Jones Lang LaSalle.

Raymond Mould, Chairman of Pillar Property PLC said: "In terms of lot size and location, this represents the most significant investment transaction in the Edinburgh office sector over recent years. The early pre-let and the forward sale shortly after we started on site demonstrate occupier and investor confidence in the scheme and the Edinburgh office market. Strong tenant demand is anticipated for the remainder of the accommodation given the well documented shortage of grade A space and the large floor plates offered by Calton Square."

In addition to the office scheme Pillar and Parlison are also building out the adjacent 250,000 sq.ft leisure development, 'OMNI' whose tenants include Holmes Place and Warners. Upon completion, the overall development will add significant profile to the east end of the city.

The developer was advised by joint letting agents Ryden and Jones Lang LaSalle with legals undertaken by Shepherd and Wedderburn. The purchaser was represented in the transaction by Insignia Richard Ellis and S.J. Berwin.

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