The consortium behind a proposed speculative scheme on Glasgow’s waterfront is to fund the scheme itself after withdrawing it from the market.
Pacific Quay Developments (PQD), a joint venture between Miller Developments, Grosvenor and Manchester-based CTP, last month instructed Jones Lang LaSalle to find bidders for a £20m forward sale of the 60,000 sq ft Pacific Quay 2 scheme.
Interest came from Prudential and other investors.
But because of improved market conditions, PQD has decided to hold out for a better price after completion.
Miller development director Pamela Grant said: “The buoyancy of the letting market makes us feel fairly confident that we will achieve a prelet throughout the consideration period or close to practical completion.”
Based on an anticipated £20 per sq ft rent and a 6% yield, a forward sale was expected to have fetched £20m. PQD hopes now hopes to sell it for £24m.
Construction of the consented scheme is due to begin in February and completion is scheduled for spring 2008. Jones Lang LaSalle and CBRE are letting agents for PQD.
References: EGi News 10/11/06
