A syndicate of private investors has bought two office buildings in north Edinburgh from LaSalle Investment Management, on behalf of BAE Systems Pension Funds Trustees, for £94 million.

The sale reflects a net initial yield of 5.04%.

The offices are at Crewe Toll, a mixed used development to the north of Edinburgh City centre at the gateway to Granton Waterfront.

The two properties, Crewe Toll West and East, on Ferry Road, are let to BAE Systems Electronics Limited until 28 November 2024 with guaranteed rental uplifts capped at 3% per annum. The current annual rental income from both properties is £5m.

Julian Agnew, a Director at LaSalle Investment Management, said: ‘We will look to immediately reinvest the money into industrial assets and will also look at alternative sectors, such as car parks.’

Kenny Waitt, director of Capital Markets at Jones Lang Lasalle Edinburgh, said the deal was a vote of confidence in Edinburgh.

‘It represents a vote of confidence in the regeneration of north Edinburgh and the city's waterfront.’

Jones Lang LaSalle advised LaSalle Investment Management. Barrs Freer Smith and Steadman Brierley acted for the syndicate of private investors.