Iconic Glasgow office block sold to Canadian investor
Sutherland House in St Vincent Street is one of two purchases totalling £23.4m by BMO Real Estate Partners, part of BMO Financial Group’s £198 billion global asset management business.
The nine-storey Glasgow block, the former headquarters of global thread manufacturer J&P Coats, was built in the 1930s and underwent a £1.6 million refurbishment in 2016, which retained its period exterior.
The 40,000 sq ft of office space is 64% let with immediate opportunities to bring in new tenants at a time when availability of Grade A stock in the city is at historic lows. Tenants include private heath care company Bupa as well as CBRE, GVA and Murphy Wealth.
BMO also acquired a warehouse property in Horsham, near Gatwick airport, currently let to Glasgow-based packaging company Macfarlane Group; and the forward-purchase of an industrial scheme in Milton Keynes. The two buildings were purchased for £7.5m and £7m respectively.
Matthew Howard, Director, Property Funds at BMO Real Estate Partners commented: “These transactions reflect our disciplined efforts to recycle capital from recent disposals into a mix of both secure and value-add opportunities in core locations, in line with the mandate’s strategy.
“We consider the entry prices at which we acquired these properties to be attractive, while they each offer compelling long term prospects to continue generating income and growth on behalf of our client.”