Edinburgh city. Picture: ISTOCK
Edinburgh city. Picture: ISTOCK

MAS Real Estate made its second acquisition in less than a week on Friday, buying two office buildings known as Princes Exchange and New Uberior House in Edinburgh, Scotland, for £71m.

MAS, through subsidiary MAS (IOM) Holdings, concluded a sale and purchase agreement to acquire the entire issued share capital of New Uberior House, which owns the two adjoining commercial buildings.

The £71m purchase price was settled in cash. Bank debt of £39m, would be drawn against the property, which will result in a net equity investment of £32m, before acquisition costs.

Morné Wilken, CEO of MAS, said the acquisition of the grade A office buildings in the heart of the financial district of Edinburgh "proved the unique deal-making capabilities of the team".

"This further leverages our significant experience in the Edinburgh property market, having delivered on the award-winning New Waverley mixed-use development," he said.

The office buildings are grade A and have an aggregate gross lettable area of 14,718m² with 175 parking spaces. They are located in the heart of the financial district of Edinburgh.

The property is let to a sole tenant, Bank of Scotland, over several leases, all of which expire in December 2025.

Bank of Scotland is a subsidiary of the Lloyds Banking Group. The current passing rent is £4.15m a year.

Last Monday, MAS announced that it had acquired Militari shopping centre in Bucharest, Romania for €95m.

Metope Investment Managers CE Liliane Barnard said MAS was freeing up capital for accretive opportunities.

"The company’s investment case on a slowly improving retail environment, and a portfolio of great assets, remains solid in my opinion," said Garreth Elston a research analyst at Golden Section Capital.