Hermes Investment Management has acquired Skypark in Glasgow’s Digital Media Quarter (DMQ) from US private equity fund Lone Star.
Media reports suggest the deal volume was in excess of the £80 mln (€92 mln) price tag after the sale attracted numerous bidders.
Skypark is a campus scheme comprising six office buildings and three development sites, and is home to over 4,000 employees. The six office buildings, known as Skypark 1-6, comprises 508,144 ft2 (47,200 m2) office space, 8,573 ft2 (800 m2) of retail space and 21,530 ft2 (2,000 m2) of warehouse and ancillary accommodation.
'Our long-term investment strategy focuses upon those locations which will benefit from enhanced infrastructure and public realm, and buildings which offer active management potential,' said Chris Taylor, head of private markets at Hermes Investment Management.
'Skypark is an attractive high-income return asset, which is significantly below replacement cost, and allows us the opportunity to manage and introduce our placemaking experience and initiatives to deliver added value and sustainable, long-term financial returns to our beneficiaries.'
Net initial yield of 7%
The complex is currently 70% let to 12 tenants, including Capita, V Group, DC Thomson, Axis, Fleet Alliance, Hub West Scotland and Herbert Engineering Corp.
The asset was put on the market by Lone Star earlier this year through JLL, with the guide price reflecting a net initial yield of 7.16%. Lone Star bought the premises in 2015.
As well as a range of serviced office space and meeting facilities, Skypark has 695 parking spaces, an on-site cafe and a nursery.
The campus lies within Glasgow’s DMQ, which is situated on the north bank of the River Clyde and between the city’s West End and the city centre.
Resonance Capital acted for Hermes Investment Management, while JLL advised Lone Star.
