Hermes Property Unit Trust (HPUT), advised by King Sturge has sold 3-5 Morrison Street in Edinburgh to Climate Change Capital. The disposal price of £23.89 million reflects a net initial yield of 7.38%.

The building extends to a total of 81,000 ft² and was built speculatively in 2002 by PPG. It consists of 57,000 ft² of offices over five floors, let to asset manager Franklin Templeton. The remaining space includes a 5,000 ft² supermarket on the ground floor let to Sainsbury’s and a 19,000 ft² four-screen cinema on the basement let to Odeon. The annual rental income for the property is £1.86 million and all three tenants have around 13 years remaining on their leases.

The sale involved both the Investment and Asset Management teams and King Sturge has been retained by Climate Change Capital to continue to manage the property.

King Sturge advised Hermes, whilst Knight Frank acted for Climate Change Capital.