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THE GRASS IS GREENER
for its Greenside office development in Edinburgh’s Blenheim Place. The deal will see the award-winning
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fintech firm take exclusive occupancy of the 2nd floor and partial occupancy of the 3rd floor office space on a 10 year lease commencing this coming November, and relocating its 180 staff from its current HQ in the city centre. Greenside, which backs onto Calton
Hill, provides 38,000 sq.ft of office accommodation arranged over five floors, with Nucleus - an innovative wrap provider set up in 2006 to initiate a sea- change in the investment and pensions market – taking just under half of this. CSG is in the process of redeveloping
the building. Having originally been built in 1988 as a computer centre for Scottish Equitable, it is set to be replaced with a vibrant new ‘de-furbished’ and modern Grade A, energy efficient office space. The fit out, by GHI Contracts, has
seen back-up generators and chiller plant rooms being stripped out. High ceilings have been created from removing suspended ceilings giving Nucleus an impressive amphitheatre stair.
hris Stewart Group (CSG) has agreed terms with Nucleus Financial Limited
SOLID SECOND QUARTER FOR GLASGOW OFFICE MARKET G
lasgow’s office occupier market performed in line with five year
averages over the second quarter of 2017 but was bolstered by a handful of large lettings, according to new research from JLL.
Office take-up in the city centre in Q2
(April-June) was 130,322 sq.ft, an increase of 26 per cent compared to Q1, but down by 21 per cent year on year. In total, there were 58 deals completed
across Greater Glasgow, with 20 of those taking place within city centre properties. The previous quarter saw 24 city centre deals completed. The second quarter’s largest letting saw
The Student Loans Company take 40,853 of office space within the Europa Building on 450 Argyle Street. Other notable deals include the 3rd
floor letting at Commonwealth House to OFGEM, Britain’s energy market regulator, who took 21,155 sq.ft at the Albion Street offices. Most recently, engineering consultants Jacobs took 14,824 sq.ft on the third floor of 95 Bothwell Street. JLL were involved across 29 per cent of activity during the quarter and advised on two of the quarter’s four biggest deals. Many decisions were delayed due to uncertainty surrounding the General
POTENTIAL SCOTTISH RECORD OF
£3,871 PER SQUARE FOOT ACHIEVED AS SALE SECURES LAWNMARKET SHOP TO PRIVATE INVESTOR
sold to a private investor for an unverified Scottish record of £3,871 per square foot (£41,666 per square metre) by DM Hall, one of Scotland’s largest independent firms of chartered surveyors, acting on behalf of the vendors. The 258 square feet premises, which currently operates as a
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newsagent, sits close by the global tourist attraction of Edinburgh Castle. Its current occupier, J&S, pays an annual rent of £18,100 on a full repairing and insuring lease due to expire in April 2034. Margaret Mitchell of DM Hall who concluded the deal said:
“Not only did we achieve a wonderful price for our client but it was positive to see competing offers around this level.” Ross Wilson, DM Hall’s Head of Agency for the East of Scotland,
said: “We believe, subject to final confirmation, that this investment sale has attracted the highest price per square foot ever paid for a commercial property in Scotland. “With a footfall on the Royal Mile of four million plus people a
year and a world heritage site like Edinburgh Castle, which has been a focal point for over one thousand years virtually next door, it is safe to say that this acquisition represents an exceptionally attractive long-term investment. “When we were given the brief to market this rare investment
opportunity, our closeness to the Edinburgh market allowed us to rapidly target prospective buyers then to enter successfully into a competitive bidding situation which ensured that we extracted full asset value for our client.”
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he heritable interest of a retail premises at 499 Lawnmarket, in the heart of Edinburgh’s Old Town on the Royal Mile has been
Election, according to JLL, with the market for mid-sized occupiers remaining particularly strained. The majority of deals in Q2 were for sub 4,000 sq.ft office space. Around 47,000 sq.ft of lease renewals
took place during the quarter, suggesting some pockets of the market exercised caution, choosing to stay put rather than looking for brand new accommodation. Claire Watson, Senior Surveyor from
JLL, said: “Despite concerns over the wider economy due to this year’s snap General Election and doubts over the nature of the UK’s exit from Europe, Glasgow’s office market returned a solid second quarter in line with five year averages. A handful of lettings at the larger end have undoubtedly shored up a quarter where the majority of deals were for office space under 4,000 sq.ft. “There continues to be a chronic lack of
supply across Glasgow’s office market, with no speculative developments on the horizon. Tellingly, 100 per cent of office lettings in Q2 were for second hand office stock, with the majority being grade B offices, indicating the lack of high quality, available office stock on the market. With a further tightening of Grade A supply, expect to see further refurbished Grade B accommodation return to the market.”
SEVEN FIGURE PROPERTY SALE ‘SPOOKS’ GLASGOW
A
townhouse in the centre of Glasgow’s business district has changed hands in a seven-figure deal after being snapped up
by a major speculative development and construction firm. 6/7 Blythswood Square comprises 16,200 sq. ft and has been
sold for £2.45m to Marshall CDP. The buyer was not put off by the legend that the corner townhouse is haunted by Madeleine Smith, a woman who stood trial accused of poisoning her lover with arsenic at the address in the 1850s. GVA acted for the seller whilst Paul Hamilton Chartered
Surveyors represented Marshall CDP, who will be working with local development partners HKI. Alison Taylor, Senior Director
for Business Space at GVA, said: “Despite being vacant for several years the sustained level of interest in the building and intense competition for Grade A space in Glasgow made a sale inevitable. Enquiries came in for a number of end uses including hotels, office and residential. “The price represents a capital rate of about £150 sq ft. This
is an increase from under £100 per sq. ft. on sales of similar townhouse properties in the city that we have been involved in recently. However at present the Glasgow market remains undervalued and offers good value to investors. “Given the lack of Grade A stock coming through and the
loss of office space to other uses in the city’s central business district, we expect a high-level of interest in the neighbouring 2- 4 Blythswood Square, which has recently undergone a refurbishment.”
COMMERCIAL PROPERTY MONTHLY 2017
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