EUROPE – The Capella office building in Glasgow has been purchased by Invesco Real Estate (IRE) for German institutional investors.

The 11-storey building with a rental space of 10,710sqm has been sold by the pension fund of British Airways for around £43m (€52m) in an off-market transaction.

The property was bought for closed-end Invesco Real Estate-UK III fund, which is closed for further investments.

Tobias Simon, director of fund management at IRE, said Glasgow was “a strong regional office market in Great Britain”, and that Capella was “one of the best grade-A office buildings” in the city.

The steel and glass tower has long-term tenants including Glasgow City Council, CapQuest, ATOS and MacRoberts.

According to Ernst & Young’s latest real estate barometer, the risk appetite among investors across Europe is on the rise.

The researchers expect cross-border transactions to increase and deal volumes on the whole to rise.

In a statement, it said: “In Central and Eastern Europe, investors are looking mainly into residential properties, while in Western and Southern Europe they show higher interest in office properties.”

Retail properties are less sought after, as European investors believe in a strengthening of the e-commerce trend, Ernst & Young said.