M7 Capital has provided an €8.6m (£7.3m) loan, on behalf of UK debt fund TREC II, to Garroch Investments, supported by Craigend Properties a regional real estate investor and asset manager, to finance the acquisition of Princes House, an office building situated in the centre of Glasgow’s financial services district. M7 Capital will provide the financing in two tranches, with an initial €7.5m (£6.3m) loan to support the acquisition of the asset and a further €1.1m (£1m) facility to fund Craigend Properties’ strategy to transform the asset into an expanded Grade A office building, which will be released subject to planning consent.
Originally constructed in the mid-1960s, the former home of Lloyds Banking Group, and more recently Barclays, is located in a 100% prime office pitch within Glasgow’s Central Business District. It occupies a prominent corner plot on Waterloo and West Campbell Street, only a 2-minute walk from Glasgow Central Station. Situated in a prime location at the heart of Glasgow’s international financial district, where strong occupier demand is generating a significant shortfall in Grade A office space.
Hugh Fraser, Chief Executive Officer of M7C said: “This new loan facility continues our longstanding relationship with Craigend Properties. Strong demand in the Glasgow office market has led to a squeeze on the supply of Grade A office space, with a number of blue-chip companies looking to base themselves in the city. We are pleased to be supporting Craigend Properties in their plan to significantly upgrade and expand the office space offered at Princes House, leveraging their impressive track record to deliver high quality, attractive products.”
Andrew White, Development Manager at Craigend Properties Limited and Garroch Investments Shareholder, said: “I have been looking for an office development opportunity in Glasgow for the last couple of years, and I am delighted that, with Savills assistance, Garroch has been able to secure such a prime opportunity in the current development cycle where there is such a shortage of Grade A accommodation.”
