Mountgrange Real Estate Opportunity Fund (MoREOF) and PRUPIM have completed on the acquisition of 1 West Regent Street in Glasgow and have appointed Sir Robert McAlpine to construct the project on the basis of a design and build contract.
The development will deliver approximately 143,000 ft² (approx. 13,284 m²) of NIA grade-A office and retail space, giving a significant boost to the city's office market. MoREOF and PRUPIM acquired the site from Duddingstone House (Renfield Street) Limited.
The development site is located in the central core of Glasgow, near to Queen Street station and adjacent to the Buchanan Street retail scheme, the city's premier shopping area. The development will be the first significant newbuild grade-A office building started in Glasgow's Central Business District in nearly five years and will seek to address the shortage of centrally located, modern grade-A offices.
The new scheme is expected to be valued at £60 mln (approx. 74 mln).
Nick Berry, partner at Mountgrange Investment Management, commented: "We have identified Glasgow as a prime target for commercial investment and believe this provides an excellent opportunity to respond to the shortage of grade-A space in the heart of the city. We are delighted to invest alongside PRUPIM, one of the UK's premier real estate institutions, who share our vision."
Demolition is expected to commence on site shortly, which will be completed by the end of the year. Mountgrange will oversee the development of the 10-storey building which is expected to be completed in December 2014.
This is the fourth investment by MoREOF in Scotland. It follows on from the joint acquisition this week of a portfolio of 24 office, industrial and retail properties Henderson Casper LLP yesterday which included three properties in Scotland. It also trails the acquisition of land in Aberdeen for office, industrial and distribution space in May 2012, and previously an investment in a major residential development site in Edinburgh.
Duddingston House Management will remain involved in the project in an advisory capacity.
Source: The HeadLand Consultancy