M&G Real Estate has acquired a prime office asset, Aurora, in Glasgow, for £72.6 mln (€99.4 mln) from CS EuroReal, reflecting a net initial yield of 6.18%. This off-market transaction was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and Justin Upton.
The acquisition demonstrates strengthened institutional investor appetite for Grade ‘A’ stock at the heart of the UK’s dominant, regional cities. Aurora presents a rare opportunity to purchase a prime, pre-let asset in Glasgow’s city core where, over the last 24 months, total office supply has halved, falling from 658,000 ft² (61.130 m²) to 314,000 ft² (29.171 m²).
Built in 2006, the 176,500 ft² (16.350 m²) office scheme is located on Bothwell Street and sits within Glasgow’s International Financial Services District. Current tenants include Barclays Bank, Aecom, BNP Paribas, Burness, Mark & Clerk, Aggreko Plc and Knight Frank.