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Glasgow, 11 February 2013 - Jones Lang LaSalle and CBRE, acting on behalf of McKay Securities PLC, have agreed the sale of a landmark city centre office building in the heart of Glasgow’s Central Business District.
The sale of 100 Bothwell Street follows a 10-year lease renewal which could see the building occupied by the Student Loans Company until December 2023. The prime office property, which occupies one of the most sought after island sites in the city, will continue as the UK headquarters of the organisation.
The nine-storey, 102,320 sq ft building was developed by McKay Securities PLC in 1989 and has been sold to a private investor after joint marketing from Jones Lang LaSalle and CBRE.
Simon Perkins, managing director of McKay Securities, said: “The significant lease extension agreed with the Student Loans Company last year generated an uplift in value, which we decided to realise through this disposal. This asset has performed well for the Group, and the time is now right to move on to new opportunities.
“The sale proceeds will be recycled into assets within our key office and industrial markets of London and the South East, where we can apply our management and development skills to generate income and capital gains.”
Ross Burns, National Director, capital markets at Jones Lang LaSalle, said: “When we set the asking price for 100 Bothwell Street we were keen to set it at a level that would attract attention. The 100% prime location and government tenant were also major factors in attracting interest which resulted in 14 viewings.
“There are investors keen to buy in Glasgow but they are very selective, and there was a lack of stock in 2012. Many require a prime location and a well-specified building let to strong covenants. There are a limited number of buildings in Glasgow that meet this criteria.”
Campbell Docherty, Senior Director, capital markets at CBRE, said: “100 Bothwell Street is the first significant office investment to be sold in Glasgow this year. With only five city centre office investments traded in Glasgow in 2012, many in the property industry will be hoping 2013 will see more activity.”
Student Loans Company Ltd administers the Government’s mortgage-style loan schemes which provide funds and support to students in higher education. The company employs over 2000 people throughout the UK. 100 Bothwell Street is their headquarters, where they now occupy 100 per cent of the lettable floor area for their customer contact centre, information and communications technology department, and corporate offices.
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