A landmark Edinburgh office block has been acquired by property investors in a £22 million deal that reflects confidence in the outlook for demand in spite of the shift to home working amid the pandemic.

Odysseus Capital Management bought Edinburgh One in the city’s financial district with a plan to increase the size of the building significantly.

The company has submitted a planning application for a development that will involve adding two new floors and an extensive roof terrace and overhauling the façade of the building on Edinburgh’s Morrison Street.

Odysseus has appointed Dobson Scotland and JLL as joint letting agents.

JLL said the repurposed building would help address a forecast critical shortage of Grade A office accommodation in Edinburgh city centre.

“Whilst the office market was subdued last year during the pandemic, there has been a significant increase in activity during 2021 as businesses prepare to return to the office,” said JLL.

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Cameron Stott, lead director in JLL’s Edinburgh office, noted: “Whilst many businesses believe they may require less space post pandemic, these same businesses have a preference for high quality space which will help them attract staff back into the office.”

JLL noted that numerous high-profile companies face lease events in 2023/24. It is expected the proposed revamp of Edinburgh One will be completed in mid 2023.

Odysseus Capital Management bought Edinburgh One from DEKA, a German investment fund.

Edinburgh One was the headquarters of the Scottish Widows Investment Partnership business, which was acquired by the former Aberdeen Asset Management in 2013.

Odysseus Capital Management investment director Peter Lillington was formerly head of real estate investment at SWIP.

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On its website Odysseus notes that it is the parent company of COREM Investment Management, which is a UK real estate investment and management platform for investors based primarily in Israel.