M&G Real Estate has bought a prime office building in Glasgow’s financial district for £72.6 mln (€100 mln), reflecting a net initial yield of 6.18%.
M&G Real Estate has bought a prime office building in Glasgow’s financial district for £72.6 mln (€100 mln), reflecting a net initial yield of 6.18%.
The 16,400 m2 Aurora building on the Scottish city's Bothwell Street was acquired from CS EuroReal on behalf of the M&G Property Portfolio.
Tenants of the 10-storey development include Barclays Bank, Aecom, BNP Paribas, Burness, Mark & Clerk and Knight Frank.
Portfolio manager Justin Upson said the deal illustrated the high demand for Grade A stock in the UK’s regional cities as institutional investors look beyond London for better value.
‘The sector’s previous peak of £29.50 per sq ft [€437 per sq m] has already been reached and investors expect a new record of £30 per sq ft to be achieved in the next tranche of lettings,’ said Upson.
The deal marks the second addition in a week to the M&G Property Portfolio, following the purchase of 20 Kingston Road in Staines-Upon-Thames for £20 mln from Boultbee (Rivergate) Ltd.
