Glas­gow’s for­mer stock ex­change site sold in £ 33m deal

● AEW Europe City Re­tail Fund buys site from Aberdeen Stan­dard In­vest­ments

The Scotsman - - BUSINESS - By SCOTT REID [email protected] scots­man. com

The build­ing that once housed the Scot­tish Stock Ex­change in Glas­gow has changed hands in a ma­jor £ 33 mil­lion prop­erty in­vest­ment deal.

The ac­qui­si­tion of the build­ing at the cor­ner of Buchanan Street and Nel­son Man­dela Place also marks AEW Europe City Re­tail Fund’s first ac­qui­si­tion in the UK. It has bought the site from Aberdeen Stan­dard In­vest­ments.

The land­mark cit y cen­tre prop­erty is fully let to nine ten­ants. The ground and first t wo floors are an­chored by North Face and Ur­ban Out­fit­ters, which have been trad­ing there since 2001.

The third and fourth floors are let to the Scot­tish arm of the NHS, while the fifth floor com­prises three smaller of­fice suites.

Three fur­ther res­tau­rant and leisure units on the ground a n d l owe r g r o u n d f l o o r s fronting onto Nel­son Man­dela Place are oc­cu­pied by Sub­way, Carls­berg UK and Ab­surd Bird.

The f ive - storey build­ing, which is ad­ja­cent to Glas­gow’s Ap­ple store, is po­si­tioned in the heart of the city’s shop­ping dis­trict known as the “Style Mile” with the re­tail frontage on Buchanan Street.

AEW said the ac­qui­si­tion pro­vided it with own­er­ship of “one of the most sig­nif­i­cant and well- po­si­tioned re­tail sites in Scot­land”.

Spencer Corkin, di­rec­tor of in­vest­ments, said: “This is one of the best re­tail as­sets in Scot­land, re­flect­ing our highly se­lec­tive ac­qui­si­tion strat­egy in the UK.

“Buchanan Street is sec­ond only to Lon­don’s West End in terms of foot­fall and re­tail spend, yet it pro­vides a sig­nif­i­cant prime yield mar­gin. The mi­cro lo­ca­tion’s fun­da­men­tals re­main par­tic­u­larly at­trac­tive with al­most zero avail­abil­ity and ro­bust oc­cu­pier de­mand driv­ing strong rental growth in re­cent years.”

Christina Of­schonka, fund man­ager at Europe City Re­tail, added: “Through this ac­qui­si­tion we have added an­other high qual­ity as­set to the fund port­fo­lio and we have a strong pipe­line of fur­ther po­ten­tial in­vest­ments.

“Over the last 12 months we have ex­panded the breadth and depth of our in­vestor base with new in­vestors from Italy and the Nether­lands, re­flect­ing the strong ap­petite among in­sti­tu­tions for this fo­cused re­tail strat­egy.”

AEW was ad­vised by Brodies and Cush­man & Wake­field while Aberdeen Stan­dard In­vest­ments was ad­vised by Shep­herd + Wed­der­burn and CBRE.

The Europe City Re­tail Fund fo­cuses on ac­quir­ing “high q u a l i t y, i n c o me p r o d u c - ing as­sets in prime lo­ca­tions across Europe’s cap­i­tal and tier one cities”. The Glas­gow deal brings the fund’s port­fo­lio to 21 as­sets across ten cities, in­clud­ing Copenhagen, Dublin, Madrid, Mi­lan and Paris, with a to­tal value in ex­cess of € 620 mil­lion (£ 540m).

AEW is one of the world’s largest prop­erty as­set man­agers, with some € 65.4bn un­der man­age­ment as of 31 De­cem­ber. It has 700 em­ploy­ees, with its main of­fices in Bos­ton, Lon­don, Paris and Hong Kong.

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