One of biggest deals in Scotland
Starwood acquires Plaza developer Abstract
St Vincent Plaza: diverse income stream
A subsidiary of private investment firm Starwood Capital Group has acquired Abstract (Glasgow), the company which developed and owns the St Vincent Plaza office development in Glasgow.
Terms of the transaction were not disclosed but it is understood to be one of the largest investment transactions in Scotland in recent years.
The 12 storey office building which comprises 172,307 sq ft is multi-let to a range of occupiers including KPMG, Whyte and Mackay, Scottish Ministers, Mott Macdonald, Wood Group and Zurich Insurance which has just become the latest tenant.
The building was completed in late 2015 on St Vincent Street opposite the new ScottishPower HQ.
Mark Glatman, chief executive of Abstract, said: “St Vincent Plaza is the third of our ‘Uncompromising Value’ series of office buildings and it is always satisfying to see the outcome of a good project.
“We are delighted that Starwood has recognised the quality of this building and the strong and diverse income stream we have created from the fantastic range of tenants who have been attracted to the property.”
Christopher McPherson, development director added: “We have been working on this project for a number of years and it is great to see the stewardship of the property move to the next stage.
“The remaining floors in the building are the best new office space left in Glasgow and with no new development likely to come on stream for at least two or three years we are confident that it will fully let up soon.”
James Fogarty, vice president for Starwood Capital Group, said “We are excited about the acquisition of St Vincent Plaza which is the first European acquisition for our recently established vehicle focussed on Value Add opportunities.
“St Vincent Plaza is a well-designed, high quality asset in a strong location with good transportation links – all of which has helped to deliver the very strong tenant roster. Glasgow has very limited Grade A vacancy, almost no new supply, and will continue to be a strong occupational market for the right asset.”
Lambert Smith Hampton and CMS acted as financial advisors to Starwood Capital Group. Pinsent Masons acted for the shareholders of Abstract (Glasgow).
Zurich Insurance is the latest global occupier to commit to the scheme. The business is relocating from The Eagle Building in Bothwell Street in mid-2018 and will take the entire 7th floor of the development comprising 17,222 sq ft on a 10 year lease.
Joint agents for St Vincent Plaza are CBRE and Ryden. JLL represented Zurich.