Glasgow offices acquired by Tristan Capital Partners

Tristan Fund invests £23m in 100,000 sq ft Cuprum Building

Article posted: 13 Sep 2011

Pan-European property investment manager Tristan Capital Partners is backing its confidence in the future of Glasgow’s office market, with the purchase by one of its funds, Curzon Capital Partners III (CCPIII), of a newly developed building in the Scottish city for around £23m, a net initial yield of 9.0%.

Cameron Spry, Partner, Head of Investments for Tristan Capital said: “Tristan has had its eye on this asset for some time, as it is top quality development and is built to the highest environmental standards. We believe that the acquisition represents a compelling core plus investment because it’s underpinned by solid current income and the potential for increasing value, due to the improving occupancy fundamentals in the Glasgow market.”

The “Cuprum Building” comprises six storeys of Grade A office space in the west end of Glasgow city centre close to the M8 motorway. It is the latest phase of the Codogan Square development offering 100,416 sq ft of flexible accommodation, with 37 secure car parking spaces.

The vendor was Lloyds Bank through administrators Grant Thornton, as the property was originally sold by the developer Taylor Wimpey to the Scots property investment firm Kenmore, which subsequently went into administration. The deal was financed by HBOS, which became part of Lloyds Bank.

Ric Lewis, Tristan Capital’s CEO added: “There has been a chronic lack of office development in Glasgow during the last three years, so now it is one of the few UK regional markets beginning to experience a shortage of Grade A space. With little or no further speculative development planned over the next 24 months in a market already showing tightness, we are confident that the Cuprum Building will attract tenants within a short time period.”

The property is being jointly marketed to prospective tenants by agents Jones Lang LaSalle and DTZ.

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Posted by Janet