BAM Properties — which claims to be the first developer to return to Glasgow after the recession — has sold its CONNECT11ONS office block in the city for £70m.
In a statement, issued from BAM’s Bunnik, Netherlands, headquarters, the company confirmed the sale of the commercial development in the heart of Glasgow’s business and retail district to Deutsche Asset & Wealth Management (Deutsche AWM).
The building — which is still under construction and is not slated for completion until June next year — will eventually contain 143,000 sq ft of Grade A office space across eight floors. There will also be 19,000 sq ft of retail space on the ground floor.
Parts of the building, located at the junction of Queen Street and Ingram Street in Glasgow’s so-called “style mile”, has already been let. Scotland’s largest law firm Brodies is set to occupy 25,000 sq ft and leading chartered accountancy firm Grant Thornton has leased more 15,000 sq ft on the eighth floor.
“Deutsche AWM recognised the strength of the Glasgow market and that CONNECT110NS was the most attractive, highly sustainable, commercial property coming on stream in the near future,” explained John Burke, managing director properties at BAM Construct UK.
“Our development fits with the profile of properties they invest in, such as One Angel Square, Manchester, which was also built by our construction division BAM Construction.”
Burke said BAM was the first developer to return to the commercial market in Glasgow after the collapse of the property sector. “The support of £10m investment from the Scottish Partnership for Regeneration in Urban Centres (SPRUCE) fund was instrumental in going forward and we are delighted that we have delivered on that investment,” he added.
“The high level of interest from top class companies vindicates our decision to develop and we are delighted that the building has attracted an international investor of the calibre of Deutsche AWM.”
The developer said it will continue to work with CONNECT11ONS’ new owner to manage the building throughout the handing over process until full occupancy.
BAM Properties has recently announced further activities in Glasgow, and says it has “well advanced” plans to invest £100m in a new development in the city’s financial district.
The sale follows losses in BAM’s UK construction division earlier this year. In its latest results, the group made a loss of €3.8m (£3m) on a turnover of €927m (£741m), compared with profits of €9.1m (£7.3m) on a turnover of €861m (£688m) during the first half of 2013.
