UBS Asset Management's real estate arm has completed the acquisition of The Grosvenor Building in Glasgow, Scotland from Standard Life Investments for £18 mln (€23 mln), representing a yield of 6.9%.
Located on Glasgow’s Gordon Street, the Grosvenor Building is a refurbished prime office and retail asset, providing 50,083 sq ft (4,645 m2) of office space arranged over six upper floors and a large retail unit extending to 6,323 sq ft at ground floor level.
The building is multi-let to strong covenants, providing an attractive weighted average unexpired lease term, with some vacancy at first and second floor levels.
'This investment represents GRE’s first transaction in Glasgow,' commented Howard Meaney, head of UBS Global Real Estate – UK. 'We were drawn to Glasgow having identified the highly attractive investment fundamentals on offer there, including a strengthening occupational market and high levels of demand for Grade A office space, coupled with a limited development pipeline and diminishing supply. As an established investor entering into a market which offers attractive yield discounts, I’m confident that this investment will deliver significant value to our clients, once our asset management strategy has been realised.'
