LSH has advised on one of the largest investment transactions in Scotland in recent years. A vehicle associated with Starwood Capital Group, a private investment firm, has acquired the entire share capital of Abstract (Glasgow) Limited, the company which developed and owns the St Vincent Plaza office development in Glasgow. Lambert Smith Hampton and CMS acted as financial advisors to Starwood Capital Group.Terms of the transaction were not disclosed.
The 12 storey BREEAM excellent EPC A office building which comprises 172,272 sq ft is multi let to a range of occupiers including KPMG, Whyte and Mackay, Scottish Ministers, Mott Macdonald, Wood Group and Zurich Insurance.
The building was completed in late 2015 and is located in a prominent position on St Vincent Street opposite the new HQ for Scottish Power. There are strong levels of interest in the two remaining floors.
Mark Glatman, Chief Executive of Abstract commented: “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 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 for Starwood Capital Group said “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.”