- What Franklin Templeton acquires its own office in Edinburgh
- Why US investor cancelled a 70,000 sq ft office move to 10 George Street at the last moment
- What next Signed a five-year extension at current HQ, which was then acquired for just short of £30m
Franklin Templeton Investments has completed the acquisition of its own Edinburgh headquarters for just shy of £30m from AXA Investment Managers – Real Assets, React News can reveal.
The deal for 3-5 Morrison Street brings an end to a protracted leasing saga involving Franklin Templeton, while also delivering the largest office sale and leasing deal in the Scottish capital so far this year.
Ryden had been instructed by AXA IM-RE to dispose of the asset on behalf of its closed-end Caesar Fund for £28m, with the real estate investment arm of Franklin Templeton concluding a deal around that level. It followed a major five-year leasing re-gear for 57,000 sq ft by Franklin Templeton Investments’ Edinburgh business at the office building.
The saga
At the time Ryden launched the asset to market last summer Franklin Templeton had an active requirement of up to 70,000 sq ft in the Edinburgh market looking for a new headquarters.
The US-based investment firm, which occupied all the office space at Morrison Street, subsequently went under offer to sublet 10 George Street from Aberdeen Standard Investments in its entirety. That deal stalled after a decision not to proceed was made at boardroom level by Franklin Templeton late in the deal process, according to market sources.
Concurrently AXA IM-RE was making progress with ARK, WeWork’s investment and asset management arm, over a deal at Morrison Street before the deal hit the buffers as WeWork’s IPO collapsed and the company restructured.
Franklin Templeton re-engaged AXA IM-RE to renew its lease at Morrison Street as its expiry in 2021 loomed large, with the US firm understood to have signed a five-year extension for 57,000 sq ft of office space.
The real estate investment arm of the New York-based business then moved to acquire the asset from AXA for just short of £30m.
The building is located in Edinburgh’s Exchange District, a prime office destination. It is an 82,000 sq ft five-floor building which includes 57,000 ft sq ft of office space. It also incorporates a 5,000 sq ft ground floor retail unit and an adjacent 20,000 sq ft four screen cinema let to Odeon.
Ryden represented AXA Investment Managers – Real Assets.
All parties declined to comment.
