Starwood Capital Group has invested in a 172,307sqft office development in Scotland for a new real estate fund.
The private equity firm said it had acquired the St Vincent Plaza office building in the Scottish city for an undisclosed sum.
James Fogarty, vice president for Starwood Capital Group, said it was “the first European acquisition for our recently established vehicle focused on value-add opportunities”.
Fogarty did not name the vehicle, but Starwood is understood to have raised in excess of $3bn for Starwood Global Opportunity Fund XI, which aims to invest in distressed debt, value-add assets and corporate transactions.
Starwood said it had bought the entire share capital of Abstract, the company that developed and owns the St Vincent Plaza office development.
The building was completed in late-2015 and has let 10 of its 12 floors to a number of tenants.
Fogarty said Glasgow has limited grade-A vacancy, almost no new supply, and will continue to be a strong occupational market.
Christopher McPherson, Abstract’s development director, said: “The remaining floors in the building are the best new office space left in Glasgow and, with no new development likely to come on stream for at least two or three years, we are confident that it will fully let up soon.’’