Glasgow seeing 'more realistic pricing' as two prominent office buildings sell for £18m

Two prominent office buildings in the centre of Glasgow have changed hands for just over £18 million, with property experts forecasting further activity amid “more realistic pricing”.

New Amsterdam Invest has acquired 2-4 Blythswood Square for £9m and Sutherland House on St Vincent Street for a further £9.05m. Property advisor Knight Frank acted for New Amsterdam Invest on the purchase of 2-4 Blythswood Square and for the vendor – BMO/Columbia Threadneedle – on Sutherland House.

Currently the Scottish headquarters of whisky giant Chivas Brothers, the Blythswood Square property is a Grade B-listed office building at one of the city’s most prestigious addresses. It consists of 27,125 square feet of office space spread over five floors. Sutherland House is located in Glasgow’s central business district and includes Murphy Wealth, law firm DAC Beachcroft and recruiter Michael Page among its occupiers. The Grade B-listed building totals 39,378 sq ft of office space over nine levels and has been extensively refurbished in recent years.

Douglas Binnie, capital markets partner at Knight Frank Glasgow, said: “The deals for 2-4 Blythswood Square and Sutherland House underline the attractiveness of and value that can be found in Glasgow. With more realistic pricing creeping in, we are beginning to see expectations between buyers and sellers move closer together – there are lots of opportunities in the current market for those looking to invest, particularly if you are a cash buyer. The economic backdrop has undoubtedly been tough for investors, with rising interest rates and, therefore, the increasing cost of debt. But, with a lot of good stock currently on the market in Glasgow and these two deals concluding, we hope to see more follow in the city over the coming months.”

Earlier this week, two landmark Edinburgh office buildings changed hands for a combined sum approaching £40m as investor interest gathers pace. In separate deals, 7 Castle Street – located on the corner of Princes Street and Castle Street – and Caledonian Exchange in the city’s Exchange district were acquired by FSX Holdings and Catella APAM, respectively. Knight Frank acted on behalf of the vendors on both of those deals.

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