Longmead makes first move into Scotland with office deal
123 St Vincent Street: refurbished
One of Scotland’s flagship office developments has been sold by Aviva to Longmead Capital for £37.8 million in one of the largest property deals in the city this year.
The acquisition of 123 St Vincent Street in central Glasgow is Longmead’s first in Scotland. The £280 per sq ft deal represents a yield of 7.57%.
The building provides 134,517 sq ft of office space over nine floors and is fully let to institutional-grade tenants including KPMG, The Secretary of State for Communities and Local Government, and Hutchinson 3G. It has an annual net income of £3m.
The steel-framed heritage building was redeveloped by Scottish Mutual in 2000, preserving the three listed façades and adding a full glazed façade behind the existing infrastructure. In 2015 three of the floors were refurbished.
Colliers International represented Longmead Capital in the deal and CBRE represented Aviva.
The building was put on the market early this year with a price tag of £40.3m. It has been under offer several times. One potential buyer was Goldman Sachs.
The £48.4m sale in June of the Bank of Scotland building in the same street is the largest transaction in the city this year. Savills Investment Management sold it to Korean investors.