TH Real Estate, on behalf of the Warburg-HIH KOOP Fund, a fund managed by Warburg HIH Invest Real Estate GmbH (Warburg-HIH Invest, previously: Warburg - Henderson), has acquired 2 West Regent Street in Glasgow. TH Real Estate will be responsible for the asset management of the property.
The asset was purchased from Kennedy-Wilson Holdings, Inc., who had originally acquired the asset from a UK bank as part of a loan portfolio in early 2013 and took direct ownership of the asset in December 2013. The asset was acquired for £31.5m (€39.9m).
Built in 2009, the 76,800ft² (7,135m²) nine-storey grade-A office block occupies a prime location in the CBD, which has been significantly enhanced in recent years with the development of nearby Buchanan Quarter and the adjacent 1 West Regent Street.
2 West Regent Street is let to a range of corporate occupiers including Willis, Midlands Valley Exploration, Colliers, FanDuel and Digby Brown.
Daniel Fahrer, senior fund manager, Warburg-HIH Invest said "The prime location, the excellent building quality as well as the sustainable rental income, provided by a strong mix of corporate tenants, are the key rationales of the KOOP fund to invest in 2 West Regent Street."
Martin Payne, senior fund manager, TH Real Estate, added "2 West Regent Street offers strong property fundamentals and asset management opportunities. The relatively low average passing rents create scope for rental growth going into a much stronger occupational market."
Montagu Evans advised TH Real Estate and CBRE advised Kennedy Wilson.
