With a second office investment in Glasgow, Union Investment is further broadening its property portfolio in the UK. The Hamburg-based real estate investment manager has acquired the fully let premium property G1, located in Glasgow's business district. The purchase price is not disclosed.
Completed in 2010, the new build comprises around 12,200 m² of rental space and will be added to the open-ended real estate fund Unilmmo: Deutschland. The fund already owns the Equinox office building in Glasgow, which is likewise fully let. With around 2.2 million m² of office space, Glasgow has the largest office market in the United Kingdom outside of London.
"As a core market with relatively low market rent volatility compared with London, Glasgow is very well placed to contribute to diversification of our portfolio in the UK," says Volker Noack, Member of the Management Board of Union Investment Real Estate GmbH, Hamburg. Union Investment's open-ended real estate funds currently have five office and hotel investments in UK regional markets across Cardiff, Glasgow, Manchester and Stansted worth a total of 310 million. The proportion of regional cities in the UK portfolio thus amounts to approximately 30%.
A grade-A listed building, G1 is centrally located in George Square, directly adjacent to Glasgow City Chambers and within walking distance of the main shopping district centered around Buchanan Street and Argyle Street.
This prominently located building was renovated in 2010 while preserving the listed sandstone façade which together with the striking glass roof gives the property its landmark status. The refurbishment was undertaken in exemplary fashion, balancing respect for this key Victorian building at the heart of George Square with the need to add state-of-the-art office space, conference rooms and restaurant space.
In 2011, G1 was awarded Best Commercial Workplace at the British Council for Offices (BCO) Awards. The property has a total of seven financially sound long-term tenants with an average lease of 13.7 years, thereby generating stable rental income for Unilmmo: Deutschland. BREEAM 'Very Good' certification underscores the building's high level of energy efficiency. The building benefits also from a "B" rated Energy Performance Certificate.
Source: Union Investment
