£33m deal for Merchant City block
Granite House sale ‘reflects market interest’
New owner of Granite House is confident of driving occupancy
Granite House in Glasgow’s Merchant City has been sold to Ambassador LB Holdings in a deal worth about £33 million.
The building in Stockwell Street provides 148,989 sq ft of office accommodation and 33,956 sq ft of retail space.
Office tenants include Clydesdale Bank, House of Fraser, Ingeus and Utilita Energy retailers Tesco, Poundland, Specsavers and Shelter.
David Davidson, partner at Cushman & Wakefield, said: “Granite House has performed extremely well for the current owners who have invested in the property and improved occupancy levels.
“This sale demonstrates the increasing interest in the Scottish investment market from investors based outside Scotland who see long term value and an attractive pricing discount for similar properties in Birmingham or Manchester.”
Ambassador LB Holdings is a joint venture between ICG-Longbow and Ambassador Group, with the purchase of Granite House taking their portfolio to nearly £100m in the last 12 months.
Chris Richardson, investment director at Ambassador Group and Ambassador LB Holdings, said: “We are confident that with further investment in Granite House, we can drive rents, increase occupancy levels and look to the longer term further development potential of the building.
“We are delighted to be working with ICG-Longbow on this opportunity and growing our JV portfolio across Scotland and the UK.”
This transaction follows the recent investment sales of St Vincent Plaza, 122 Waterloo Street (Morgan Stanley), City Park and Capella all within the last 3 months.