EDINBURGH’S Audi dealership, located on Bankhead Drive in Sighthill, has traded hands in a £9.1 million deal.
Operating since 2009, the showroom is the German car brand’s long-term home in the Scottish Capital. The dealership is operated by Lomond Motors, a subsidiary of Lookers.
The 43,774 sq. ft. site has been acquired by financial services firm Wesleyan from Legal & General, with the deal reflecting a net initial yield of 7.5%. Independent commercial property consultancy Knight Frank acted for the vendor, with Galbraith representing the buyer.
Purpose-built to a high specification, the dealership was among the first in Audi’s UK network developed to its latest corporate architecture. It also underwent a £2 million expansion and upgrade in 2016 following a strong period of trading.
Euan Kelly, capital markets partner at Knight Frank Edinburgh, said: “The deal for Edinburgh Audi underlines the value available in the commercial property market for alternatives. Car sales have been remarkably robust in the years since the pandemic and the occupier is committed to the site long term, with RPI-linked rent reviews providing a level of protection against inflation. We expect more alternative property assets to transact in the next few months as investors look to different opportunities for long-term income in a more settled interest rate environment.”
