Starwood Capital Group, a private alternative investment firm with a core focus on global real estate, energy infrastructure, and oil & gas, have made a serious investment in Scottish real estate, acquiring the entire share capital of real estate management company Abstract (Glasgow) Limited in one of Scotland’s largest investment transactions in recent years. As part of this deal they will be taking ownership of the 172,307sq ft of Grade-A office space at St. Vincent Plaza, a high-quality modern office building developed by Abstract in 2015.

Img: PRNewsfoto/Starwood Capital Group
While the exact terms of the deal have not been disclosed, the 12-storey EPC-A office building with a certified BREEAM rating of ‘Excellent’ is sure to prove a lucrative investment for Starwood Capital Group. Much of the available office space is already multi-let to a range of occupiers including KPMG, Whyte and Mackay, Scottish Ministers, Mott Macdonald, Wood Group, and Zurich Insurance, with high levels of interest being shown in the remaining two floors.

On top of the building’s recognised quality and eco-friendly credentials, the investors also saw value in its good access to transportation links and prominent position on St Vincent Street opposite the new HQ for Scottish Power, which further adds to the development’s appeal.

Mark Glatman, Chief Executive of Abstract, commented on the deal, “St Vincent Plaza is the third of our ‘Uncompromising Value’ series of office buildings and it is always satisfying to see the outcome of a good project.  We are delighted that Starwood has recognised the quality of this building and the strong and diverse income stream we have created from the fantastic range of tenants who have been attracted to the property.'”

Christopher McPherson, Development Director for Abstract, added, “We have been working on this project for a number of years and it is great to see the stewardship of the property move to the next stage. 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 2 or 3 years we are confident that it will fully let up soon.'”

James Fogarty, Vice President of Starwood Capital Group, stated, “We are excited about the acquisition of St Vincent Plaza which is the first European acquisition for our recently established vehicle focussed on Value Add opportunities. St Vincent Plaza is a well-designed, high quality asset in a strong location with good transportation links – all of which has helped to deliver the very strong tenant roster. Glasgow has very limited Grade A vacancy, almost no new supply, and will continue to be a strong occupational market for the right asset.”

Sam Bonson

Sam is an aspiring novelist with a passion for fantasy and crime thrillers. He is currently working as a content writer, journalist & editor as he continues to expand his horizons.
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