Prudential has added to its recent spate of office acquisitions with the purchase of Atlantic Quay in Glasgow for £65.75m.
In one of the biggest property deals the city has seen for two years, the office complex which hosts Scottish Powers headquarters was sold by German bank, CGI, in an off-market deal which was pushed through to beat the Budget. The price reflects a yield of just over 7%, and rent increases expected in the next 18 months should boost the income further.
Glenn Laurie of Conroy Laurie, adviser to Prudential, said: “We have been negotiating this deal for a number of months, and looking for a commodity of this kind for Prudential. Its the biggest investment deal for a long time, and we feel that the ingredients are there for rental growth in Glasgow, which will further increase the value of the investment.”
Atlantic Quay is the first phase of a major riverside development constructed in 1991, comprising three buildings which provide a total of 26,000 sq m (280,000 sq ft.)
CGI purchased the complex three years ago for around £47.5m.
Other tenants include BAe Sema, Lloyds TSB plc, Axa Provincial Insurance and Hilton Group.
Jones Lang LaSalle also advised Prudential, while DTZ Debenham Tie Leung acted for CGI.
EGi News 03/04/00
