Change of use
Offices sale paves way for more student rooms
A modern office block in central Glasgow has been sold for £9.3 million and will be demolished to make way for 527 student apartments.
Planning consent to demolish and rebuild on the site was gained in February by IQ which has now completed the property acquisition from AEW UK REIT.
The vendor said the sale agreement had required it to “negotiate with tenants” in order to vacate the offices.
Laura Elkin, portfolio manager of AEW UK REIT, said: “As the culmination of a long-running business plan, we are delighted to see this sale complete.
“The disposal not only maximises the value of the asset but will increase occupancy levels across the remaining portfolio, reduce running costs and boost earnings, once capital is reinvested.
“The proceeds from the sale are already under offer to assets in exclusivity and, as such, we expect to make further purchase announcements in the coming weeks.
Broomielaw hotel approved
An £18 million hotel development occupying Oswald House and the gap site between the building and the historic Clydeport HQ on Glasgow’s Broomielaw has been granted planning approval.
Alec Knowles, director at developer HMH One Clyde, said: ““Today, there are many vacant plots and brownfield sites along the Clyde. Such sites must be reclaimed as viable pieces of urban fabric to prevent unnecessary expansion and achieve Glasgow’s long-term aspirations for a high-quality built environment.
“Glasgow is anticipating a rise in demand for dedicated short stay accommodation with increased activity forecast in both the tourism/ leisure and business conferencing sectors, which this development will directly address.”
A report by property analysts Co-Star earlier in the summer raised questions about the ability of the conference and other elements of the short-term visitor sector to fill the growing number of hotel rooms in the city.