The acquisition is the third addition to Capreon’s European smart workplaces portfolio and follows a recent transaction for three buildings in Madrid, Spain.

The Edinburgh Quay offices are 92% leased to tenants such as Apple, Bloomberg, and the Financial Conduct Authority, have a replacement value of £49m, and a weighted average lease break (WALB) of over five years.

Adjacent to the buildings, a quayside residential development is under construction. Capreon’s plans to further develop the buildings include bringing the Quay 1 property to operational net zero carbon status.

Capreon’s smart workplace strategy is centred on investing in areas where people want and need to work, in offices with excellent amenities and strong ESG credentials, high tech campuses and life science assets. The strategy is focused on defined districts of certain high-innovation cities within the UK, Spain and the Netherlands.

George Minns, managing director at Capreon, said: “We are delighted to close this transaction on three buildings in Edinburgh which are a fantastic asset in Capreon’s ever-growing portfolio.

“We are buying income with excellent covenants in an undersupplied market, at a 25% discount to replacement cost, while also delivering a Net Zero Carbon business plan.”

Raphael Noe, partner at Capreon, said: “This transaction highlights our ability to invest thematically on behalf of our investor clients and we have identified significant appetite from them to grow this strategy further in 2023.

“We are pleased to have now closed this deal and continue to look for further opportunities in the European market.”