Hermes Investment Management is buying the Skypark business park in Glasgow for in excess of the £80m asking price, reflecting a 7.16% yield.
LoneStar instructed JLL to market the office investment and development opportunity in October.
It comprises 508,144 sq ft of office space, 8,573 sq ft of retail and 21,530 sq ft of warehouse and ancillary accommodation.
There are six office buildings in total as well as three development sites. It is multi-let with 69.54% of the income payable by 12 tenants.
The property is in Finnieston, Glasgow’s digital media quarter, and has an overall WAULT of 5.48 years to expiry and 4.1 years to break.
It produces £6.6m pa in rent, with office rents in the building ranging from £12-30 per sq ft. Prime rents in Glasgow are currently at around £31 per sq ft for grade-A space.
The office investment market in Glasgow has proven a popular choice among international investors.
Office grade-A rents in Glasgow are currently the lowest of all of Scotland’s Big Six cities at around £30 per sq ft, suggesting a strong potential for rental growth, which is attracting investor interest.
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