Morgan Stanley is close to agreeing a deal for a new 150,000 sq ft Glasgow headquarters, which will double its presence in the city.
The investment bank is in advanced talks to prelet HFD Group’s Bothwell Exchange on Douglas Street in what would be one of the city’s largest occupational deals of the past decade.
CBRE has been handling the firm’s requirement. Other shortlisted options for a move, including Abstract Development’s recently completed St Vincent Plaza, have now been ruled out.
HFD Group’s development is close to Morgan Stanley’s existing offices at KUC Properties’ Cerium Building, where it has 55,000 sq ft, and CBRE Global Investors’ Sentinel Building, where last year it signed for 10,000 sq ft.
While Morgan Stanley has not completely ruled out regearing its current leases and reconsidering its expansion options in the city, it is pressing ahead with a deal at Bothwell Exchange.
The Bothwell Exchange scheme includes 180,000 sq ft of offices, a 320-bedroom hotel and ground-floor leisure.
It is expected that Morgan Stanley will sign a lease of more than 10 years in order to kick-start the development. Prime rents in the city are £29.50 per sq ft, according to research by Knight Frank.
The scheme is understood to be already attracting the attention of institutional investors as an investment opportunity.
l KPMG is close to securing a new Scottish headquarters in Glasgow at Abstract Securities’ 170,000 sq ft St Vincent Plaza.
The accountancy firm is looking at a 10-year deal for the top three floors of the building, totalling 39,000 sq ft, and is expected to pay £25 per sq ft.
Ryden and CBRE are letting agents at St Vincent Plaza; Knight Frank is acting for KPMG.
Morgan Stanley declined to comment.
