Prime Glasgow site is latest property disposal for Lloyds

Published on Wednesday 8 September 2010 22:30

LLOYDS Banking Group is seeking to offload a prime development site in one of Glasgow's most important conservation areas as it continues to reduce its exposure to the battered property sector.

The bank, which inherited a vast portfolio of property loans and assets following its rescue of HBOS, is searching for a buyer for 110 Queen Street, a former HBOS office.

Prior to the recession, Australian development firm Valad had planned to turn the site into a 40 million mixed-use office and retail scheme but the project never got off the ground.

CB Richard Ellis (CBRE) has been appointed to market the property, which comes with planning permission for 156,306sq ft of Grade A office space plus eight retail units at 13,424sq ft.

Audrey Dobson, senior director for business space at CBRE in Scotland, said: "110 Queen Street is a real landmark in Glasgow city centre and is the most exciting development opportunity to come to the market for some time.

"This opportunity is particularly attractive as it offers prospective purchasers both flexibility and location. We are confident that it will attract interest from a range of potential investors and developers."

The news follows the revelation that Lloyds is also set to sell its interests in housebuilder Crest Nicholson to US investment fund Varde.

The bank has so far refused to confirm a sale price for the firm, which was once a 50:50 venture between Scottish entrepreneur Sir Tom Hunter and HBOS.

In May it was reported that Hugh Osmond, the tycoon behind Pizza Express and Punch Taverns, had made an approach thought to be worth about 350m for the business while it was believed that a number of other housebuilders including Redrow, Galliford Try, Redrow and Persimmon were also interested.