A major legal occupier has had to terminate negotiations for a potential HQ after a Scottish energy company agreed to buy the building for its own occupation.
Scottish & Southern Energy is in talks to buy the 60,000 sq ft 1 Waterloo Street from Stockland for around £25m. The Australian developer completed the building earlier this year.
The deal, which is expected to be concluded in around three weeks, means that prospective tenant Shepherd and Wedderburn – which was under offer to take 10,000 sq ft across two floors – has been forced to look elsewhere for a home.
The law firm is based in around 13,000 sq ft at 155 St Vincent Street but has to move ahead of a lease break in August next year.
It is facing a limited number of options as there are only three new buildings in the Scottish city with floorplates of more than 10,000 sq ft: the 65,000 sq ft Capella, the 98,000 sq ft Cuprum and the 40,000 sq ft G1 on George Square.
Agent CB Richard Ellis is also a tenant in one floor of the building. It is expected that a deal will be struck between CBRE and SSE so that the energy company can occupy the entire office.
It is the second time this year that an office occupier in the city has been forced out of a building it was in negotiations to take because of a sale.
In March, the National Farmers’ Union bought the 75,000 sq ft Clarion for its own occupation, despite law firm Maclay Murray Spens being under offer to take 40,000 sq ft.
Also this week, German fund Union Investment has gone under offer to buy the Equinox building for £28.3m, reflecting a yield of around 5.65%.
The fund bought the 64,000 sq ft office from a private investor in its first purchase outside London this year.
Stockland and Union declined to comment.
NB Real Estate and BNP Paribas Real Estate are advising the Equinox vendor; DTZ is acting for Union.
bridget.oconnell@estatesgazette.com
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