The Hurbicide Guru

The Luxembourg-based Cordea Savills European Commercial Fund has bought over Edinburgh Quay 2, the joint venture development creation for a whopping sum of almost £21.1 million! Notwithstanding the fear of loss of appeal for potential investors, the development has made a yield of about 6%, and is expected to boost the financial sector.

Already an old player playing home to companies such as Pinsent Mason’s solicitors and Baker Tilly, Edinburgh Quay 2 is said to be one of the biggest commercial developments in this space. However, the financial sector of Edinburgh had invested its hopes on this development diversifying outside of the Exchange Area.

Almost 20% of the area of Edinburgh Quay 2 is still left to be occupied, owing to the credit crisis in 2007 throwing a challenge for developers in terms of shifting their shared office space. Reports mention that some tenants are currently contemplating vacating the general area as well.

The development layout, before being bought over by the Lloyds Banking Group, was situated near HBOSs former headquarters. Edinburgh Quay 2, now heading the development, claims that the building was in the bidding even before being largely advertised to potential buyers.

Sources from the commercial property department state that the development is risky business owing to its proximity from the offices of Bank of Scotland that have all the chances of being abandoned. These offices are likely to have no takers, and hence, would leave the entire surrounding area deserted with no visual appeal.