A European buyer has acquired a "landmark" property in Edinburgh's Princes Street in a deal valued at nearly £30 million.

France's Remake Asset Management has bought the mixed-use office and retail block at 40 Princes Street for £29.5m. The site, which has been home to retail chain H&M for nearly 20 years, was previously owned by urban real estate investment management company Redevco.

Developed in 2005, the property is one of only a handful of modern developments located on the historic pitch of Princes Street. It has a fully-let lineup of Grade A office space in close proximity to Waverley Station, St James Quarter and St Andrews Square, the newest being flexible office space provider Cubo.

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The block was marketed for sale in May by Lismore Real Estate Advisors on behalf of Redevco. Remake Asset Management was advised on the deal by the real estate division of BNP Paribas.

“At a time when the wider market is facing challenges, particularly around the office sector and finance pricing, it demonstrates that for a quality asset in a core location, investor appetite remains," said Gary Cameron, head of real estate in Scotland for BNP Paribas.

“40 Princes Street offers the best office space on the street and Princes Street continues to be the dominant retail pitch for the city, book ended by the nearby St James Quarter. New occupiers are committing to space with some significant retail, hotel and leisure redevelopments in the pipeline.

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“Our client has bought a landmark Edinburgh asset with a strong income profile at a time in the cycle where pricing is offering discount to longer term average yields."

He added: “The deal shows the reach of the BNP Paribas network. It was great to work with our London and Paris teams to help deliver a retained client into the UK.”