THE Edinburgh headquarters of drinks giant Diageo has been sold by the landlord for £6.55 million

Around 200 staff at the Lochside Way site will transfer to a nearby building in Edinburgh Park in November following the sale to Northwood Regional UK.

Stephen Kay, of CuthbertWhite said: “This building is probably one of the most connected within Edinburgh Park, being adjacent to Edinburgh Park Central tram station and will benefit from Northwood’s ability to reposition the asset following Diageo’s departure.”

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The firm said the Edinburgh office market “continues to be challenged” by a shortage of Grade A office space.

The sale was managed by CuthbertWhite. Northwood was advised by Savills, while Brodies LLP represented the seller and Dickson Minto advised the buyer.

Diageo, which said it was not involved in the sale of the Edinburgh Park building, currently has plans lodged with Edinburgh City Council to transform the former House of Fraser in Princes Street into a seven-floor whisky tourism and visitor experience.

CuthbertWhite has transacted in excess of £90m of Edinburgh office investments over the last 18 months, including Apex 123, Haymarket, Greenside, Blenheim Place and 9-10 St. Andrew Square.