Unilever Pension Fund has bought Culzean House in Glasgow from a private client of CBRE for £9.2m.
The 36,000 sq ft multi-let retail and office sale reflected a net initial yield of 5.26%. Tenants include Singapore Airlines, Optical Express and Speirs & Jeffrey Stockbrokers.
Agents for the vendor said that the sale created a bidding frenzy with 20 viewings, seven formal bids and a number of informal notes of interest.
The property has refurbishment potential, is centrally located at 36 Renfield Street, and has a number of up-coming rent reviews.
CB Richard Ellis senior surveyor Tom Fulton, who acted for the vendor, said: “We received a substantial level of interest from a wide spectrum of investors including institutional investors, property companies and private individuals once Culzean House went onto the market.
He continued: “The asset management angle would be to refurbish and re-let the upper floors, once the leases come to an end.”
Leases on the office element expire between 2009 and 2013. The retail element on the ground floor is let until 2021. The building, which is fully let, generates an annual rental income of £512,000.
Unilever Pension Fund was represented by Ryden.
References: EGi News 17/08/06
