The 1 West Regent Street office building in Glasgow is now fully owned by M&G Real Estate.
The 11-storey building, spanning 143,000 square feet of offices and three ground-floor retail units, was developed by M&G in a joint venture with property fund manager Clearbell in a speculative project aimed at addressing the shortage of Grade A office space in Glasgow city centre.
Clearbell has now sold its 50 per cent stake in the building to M&G. No value was disclosed, but the firm said it had made a “significant” return on its investment.
1 West Regent Street, completed in April 2015, is almost three-quarters let, with tenants including law firms CMS and Shepherd and Wedderburn, Glasgow-based engineer Weir Group, media organisation Global and professional services companies Arup and FDM Group.
Manish Chande, senior partner at Clearbell, said: “We recognised the need for better quality office space for businesses in Glasgow and for institutional investors seeking long-dated income. The development at 1 West Regent Street was intended to address this need. We have ensured the building has excellent sustainability and design credentials to attract a high calibre of organisation.
“Since finishing the development we have secured a number of high-calibre tenants, highlighting the quality of the building design and accessible location. By capitalising on the demand for office space outside of London, we have achieved a significant return on our initial investment.”
Hugo Henkes, investment director at M&G Real Estate, added: “We are pleased to have completed the acquisition of Clearbell’s 50 per cent interest. The scheme has enjoyed enormous success and attracted a range of tenants providing secure income – a clear reflection of the quality of the building and its prime location. Interest in the remaining space is strong and we expect to secure additional occupiers in the near future.”
Bilfinger GVA and JLL are letting agents for the office development, with CBRE and Culverwell marketing the ground-floor retail units.