TH Real Estate, on behalf of the Warburg-HIH KOOP Fund, has acquired an office building in Glasgow. The investment volume of £31.5 mln (almost €40 mln) reflects a net initial yield of 5.84%.
TH Real Estate, on behalf of the Warburg-HIH KOOP Fund, has acquired an office building in Glasgow. The investment volume of £31.5 mln (almost €40 mln) reflects a net initial yield of 5.84%.
The property at 2 West Regent Street in Glasgow was purchased from New York-listed Kennedy-Wilson Holdings, which had originally acquired the asset from a UK bank as part of a loan portfolio in early 2013 and took direct ownership of the asset in December 2013.
Built in 2009, the 7,135 m2, nine-storey Grade A office block occupies a prime location in the CBD, which has been significantly enhanced in recent years with the development of nearby Buchanan Quarter and the adjacent 1 West Regent Street.
2 West Regent Street is let to a range of corporate occupiers including Willis, Midlands Valley Exploration, Colliers, FanDuel and Digby Brown. Annual rental income equates to £1.8 mln and the average passing rent of £23.96 is low compared to the prime rent in the city of £31.00.
Montague Evans advised TH Real Estate and CBRE advised Kennedy Wilson.
Warburg-HIH KOOP Fund is managed by HIH Invest Real Estate GmbH, which was previously Warburg - Henderson before German banking group Warburg bought Henderson out of the venture and merged the business with its HIH real estate investment arm.
