A client of DTZ Investment Management, represented by Knight Frank, has bought 133-137 Buchanan Street, Glasgow, for £21.2 million - reflecting a net initial yield of 5.5 per cent. The 35,197 sq ft building, previously owned by LNC Property Group, occupies an entire block on a prime retail location at the corner of Buchanan Street and St Vincent Street.
The premises include retail space at ground floor and basement level, with office accommodation on the upper floors. Tenants include Phones 4U, TM Lewin, The Post Office, and a former HBOS unit, currently being assigned to Jack Wills at an enhanced rent.
Tony Gibby, associate director at DTZ Investment Management said: "We feel that Glasgow and Edinburgh are showing good value at present - and with a further £600 million to spend across a number of clients I expect there to be further acquisitions north of the border. We are still looking to acquire similar assets in Glasgow, Edinburgh and across the rest of the major cities in the UK."
Alasdair Steele, investment partner at Knight Frank, said: "This deal represented a rare opportunity to acquire a prime Glasgow retail block including upper office floors. It's an attractive proposition, providing secure core income with some additional asset management opportunities. Properties of this nature on Buchanan Street will always be desirable, due to the high levels of tenant demand which results in strong rental growth,"
Knight Frank acted on behalf of DTZ Investment Management, with Culverwell representing the vendor, LNC Property Group.
