In one of the most significant retail property investment deals in Scotland this year, Aviva Investors on behalf of CIP Property (AIPT) Ltd, advised by King Sturge, has sold 129/130 Princes Street in Edinburgh to Rutley Capital Partners (on behalf of Lancashire County Council Pension Fund) for £9.65m.

The disposal price reflects a net initial yield of 7.4%. The Princes Street property occupies a prime retail site in Edinburgh city centre and is fully occupied by HMV UK Ltd on a lease which runs until 2023, at an annual rental income of £760,000.

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The property extends to 20,461 ft² (1,900.8 m²) and comprises a high quality retail unit arranged over basement, ground and two upper floors. The unit was redeveloped approximately 10 years ago behind its original façade.

Commenting on the deal, Simon Cusiter, partner of King Sturge said: "Despite testing market conditions, this property attracted interest from a number of Institutional and Private investors. It is proof that there is still demand out there for good quality stock, let to good covenants on long leases."

King Sturge represented Aviva Investors, whilst Knight Frank acted for Rutley Capital Partners.

(GK/JM)