M&S store in heart of Glasgow to be transformed into student flats as £150m deal sealed

“This landmark development will not only help to address the city’s shortfall in student accommodation but will also revitalise the local area” – Brodie Berman, Fusion

Controversial plans to partly demolish a former Marks & Spencer store in the heart of Glasgow and create hundreds of student homes have been sealed.

Student flat developer Fusion Group said a £150 million deal to push ahead with the transformation of the former M&S store on the city’s Sauchiehall Street into a major mixed-use development had been concluded. The developer has now purchased the site from the retail giant to deliver new student homes and an “improved shopping environment” aimed at kickstarting the area’s regeneration.

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The deal comes after planning permission was granted by Glasgow City Council during the summer. An earlier proposal for the site had been narrowly rejected, for reasons including being too tall.

The M&S outlet had operated out of the historic art deco building since 1935 on one of Glasgow’s most famous shopping streets.The M&S outlet had operated out of the historic art deco building since 1935 on one of Glasgow’s most famous shopping streets.
The M&S outlet had operated out of the historic art deco building since 1935 on one of Glasgow’s most famous shopping streets.

As part of the scheme, 619 student beds will be delivered, alongside some 9,500 square feet of commercial space at street level via a new shopping arcade that will restore a historic pedestrian route through to Renfrew Street.

Developers said the project was expected to play a pivotal role in addressing the city’s shortfall of student accommodation, while acting as a catalyst for the wider regeneration objectives of the local council’s “Golden Z” initiative.

Brodie Berman, senior acquisitions associate at Fusion Group, said: “We are delighted to announce the acquisition of the former Marks & Spencer store, bringing us a step closer to delivering our exciting proposals that will kickstart the regeneration of Sauchiehall Street. This deal reflects the strong partnership we’ve built with Marks & Spencer, and we are grateful for their cooperation and positive engagement throughout the planning and acquisition process.

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“This landmark development will not only help to address the city’s shortfall in student accommodation but will also revitalise the local area, and we are excited to see the positive impact it will have on the city.”

As part of the scheme, 619 student beds will be delivered, alongside some 9,500 square feet of commercial space at street level.As part of the scheme, 619 student beds will be delivered, alongside some 9,500 square feet of commercial space at street level.
As part of the scheme, 619 student beds will be delivered, alongside some 9,500 square feet of commercial space at street level.

Will Smith, property director at Marks & Spencer, said: “We are pleased to have reached this milestone and concluded the sale of our former Sauchiehall Street store. Delivering long-term activity on the site aligns with our estate renewal strategy, and we’ve worked hard to find the right partners to ensure its future success. We’re confident that Fusion Group’s vision will contribute positively to the regeneration of Sauchiehall Street and Glasgow city centre,” he added.

The purchase of the site was funded by a loan provided by Octopus. Fusion Group was advised by TLT and Taylor Wessing, while M&S received counsel from Dentons, and the lender was represented by Memery Crystal and Lindsays.

James Nunn from Octopus said: “This marks the third loan we have provided to Fusion, and we are delighted to have played a role in supporting this key urban renewable project.”

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Steve Clinning from Memery Crystal added: “We are pleased to have supported Fusion Group and Octopus in this significant transaction. This development represents an exciting opportunity to regenerate Sauchiehall Street in Glasgow and foster a vibrant community. We are proud to have played a role in facilitating such an impactful project.”

Founded in 2013, Fusion Students acquires, develops and operates student housing across major UK university cities.

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