Relocation boost for city

Glasgow offices earmarked for HMRC hub

Atlantic Square

Atlantic Square: government target

UK government tax staff are expected to move into a new office development in Glasgow in what will be a signifiant boost to the city’s commercial property market.

The Government Property Unit (GPU) is believed to have chosen the 300,000 sq ft Atlantic Square development as part of a relocation of staff and the creation of a regional hub in the city.

It is finalising terms with the development’s owner Taylor Clark Properties and joint venture partner BAM Property, after selecting it from a shortlist of three, according to industry sources.

It will be let mainly to HMRC and will form the first phase of a larger government presence in the city, with the total requirement believed to be up to 600,000 sq ft.

Planning consent has been obtained for two office buildings of 180,000 sq ft and 80,000 sq ft alongside a third building for residential and retail space.

The GPU has been looking at a number of new developments to reduce the current 170 HMRC offices to 13.

It recently announced plans to move 2,900 tax staff into new space being developed in New Waverley, Edinburgh, two in London, and others in Bristol, Cardiff and Liverpool.  It is looking at other schemes in Belfast, Birmingham, Leeds, London and Manchester.

Atlantic Square was picked from an original shortlist of three Glasgow developments. It also considered HFD Group’s planned 215,000 sq ft office in Bothwell Street and Drum Property Group’s planned regeneration of the Tradeston Street area, according to Property Week which says the Scottish Courts and Tribunals Service is under offer to take 80,000 sq ft at 3 Atlantic Quay.

The court service was believed to be interested in 6 Atlantic Quay but will now take space at the Moorfield Group-owned Number 3 building.

The Department for Work and Pensions – which was under offer on 3 Atlantic Quay – will now take 80,000 sq ft of space at 1 Atlantic Quay, which is also owned by Moorfield. The quoting rent for the scheme was £25/sq ft. The Credit Suisse-owned 6 Atlantic Quay will be re-marketed.

Cushman & Wakefield is acting for Taylor Clark and BAM and JLL is acting for the government and Moorfield Group.

The investment coincides with the latest big transaction involving the sale of offices in Nelson Mandela Square.

> Daily Business understands that Osborne House, a four-storey office development near the Haymarket in Edinburgh, is under offer to Square and Crescent.

Owner Ian Harding denied a deal had already been done, but sources say talks are ongoing. Knight Frank is acting for the vendor.

£11.1m office deal in central Glasgow

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