£215m deal

Glasgow offices sold to Spanish owner of Zara

177 Bothwell street
177 Bothwell Street is Glasgow’s biggest office building

A new Glasgow office development has been sold to a Spanish investment vehicle that controls Inditex, the owner of fashion retailer Zara, in a deal worth around £215 million.

HFD Group has offloaded 177 Bothwell Street, Scotland’s largest new office building, to investment firm Pontegadea.

It is the billionaire Ortega family’s investment vehicle, with a 59.29% stake in Inditex and managing a portfolio of property investments.

The deal has notched a few records. It is the largest Scottish office investment transaction and the largest deal involving a single multi-let office building in the regions, as well as beibng the third biggest sale of a single office property outside London.

Amancio Ortega is the founder and majority shareholder of Inditex, which is best known as owner of the Zara chain. Mr Ortega began by running a small family business making dresses and dressing gowns in 1963 but is now the world’s sixth-richest man, according to Forbes, and Pontegadea, founded in 2001 to invest his dividends from Inditex, has become a property buyer on a big scale.

It is based near the north-western Spanish city of A Coruña and is said to be the biggest landlord on London’s Oxford Street.

It also owns Amazon’s Seattle HQ, and the Facebook offices in the same city as well as properties on the Champs-Élysées, Madrid’s Castellana Avenue and Rome’s Via del Corso. In 2019 it bought the London headquarters of consultancy McKinsey for about £600m, one of five property investments it made across the world in 2019.

The Bothwell Street deal, first reported by the React News website, has emerged as work is completed on the 315,000 sq ft development which will house blue chip tenants Virgin Money, BNP Paribas, AECOM, CBRE, and Transport Scotland.

Bellshill-based HDF last week announced that it will relocate its headquarters from Strathclyde Business Park to the building, where it has taken over the top floor. The move also set a new headline rent in Glasgow of £40 per sq ft.

The building meets all the latest environmental standards and features a rooftop terrace and running track, 318 cycle spaces, electric vehicle charging points, and touchless technology.

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