Odysseus Capital Management (OCM) has received a £36m debt facility to help fund its acquisition of the former Scottish Widows Investment Partnership (SWIP) office.
The firm is the new owner of Edinburgh One at 60 Morrison Street for more than £22m. It plans to refurbish the building.
Moorhall Capital arranged the debt and equity deals behind the acquisition of the landmark office.
The advisory firm brought together the £36m debt facility from CBRE Global Investors Credit Strategies and JV Investment Partner for Odysseus Capital Management.
CBRE Global Investors Credit Strategies provided an acquisition and refurbishment facility in excess of £36m to OCM to acquire the building from Deka Immobilien Investment GmbH, and to facilitate its plans for the office.
As part of the deal Moorhall Capital also secured OCM the backing of a joint venture equity partner to enable initial acquisition as an off-market transaction and the proposed improvements to the building.
A plan has been submitted to increase the floorspace from 54,000 sq ft to about 85,000 sq ft adding two floors, including a roof terrace, along with a change to the facade.
The redesign by Edinburgh architecture practice CDA also includes plans to exceed the sustainable requirements for office buildings.
Richard Edlmann, managing director of Odysseus Capital Management, said: “It will address the forecast critical shortage of Grade A office space in Edinburgh City Centre and will be futureproofed to meet the demands of ESG sensitive corporate occupiers.”
Rob Jones, principal at Moorhall Capital, added: “Edinburgh’s office market has quickly rebounded this year proving the underlying strength of demand, but it faces limited supply of quality space in the future. By investing in Edinburgh One, and especially by reducing its carbon intensity, OCM will be delivering in one of the city’s most sought after locations at a vital time.”
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