FORE and Kier Property acquire prime office building in Glasgow
FORE Partnership, the pan-European real estate investment club for family offices and private
investors, with joint venture partner Kier Property, the development division of the Kier Group have
exchanged contracts to acquire an 89,300 sq ft period office and retail building in Glasgow for
£23.25 million from M&G Real Estate. The transaction is expected to complete in September.
The building at 50 Bothwell Street provides 77,000 sq ft of office space over six floors and 12,300 sq
ft of retail space across three ground floor units. The office space is let until December 2017 to
Standard Life Investments, and the retail space is let to Marks & Spencer, Superdrug and Costa
50 Bothwell Street is the second joint venture for FORE Partnership and Kier Property. In November
2012 they acquired the empty building at 58 Victoria Embankment in London’s Midtown for a
speculative office development. The partnership sold the 48,000 sq ft development; “View 58” for
£50.95 million a year ahead of completion.
The building is also the second office in Glasgow to be acquired by FORE Partnership in the last two
months. In July, it acquired the prime development site, New Exchange, at the corner of Cadogan
and West Campbell streets, with planning consent for a 95,000 sq ft office building.
The office space at 50 Bothwell Street is in need of some refurbishment. As part of this, the joint
venture will implement FORE’s Responsible Real Estate agenda, which focuses not only on the
traditional “green” features designed to reduce carbon, but also more broadly on trends around
how space is used, the built environment, community, urbanisation, and a holistic view on the
responsibility landlords have and the role real estate plays in people’s daily lives. Health and
wellbeing will be promoted, with the introduction of bike storage, showers and changing facilities, as
well as an upgraded basement gym.
Basil Demeroutis, Managing Partner of FORE, said: “We are delighted to have made our second
acquisition in Glasgow. We believe in the long-term strength of this market, one of the largest and
deepest in the UK. In spite of recent volatility, Glasgow remains fundamentally short in supply of
quality office space, and is particularly lacking in buildings with sustainable credentials.”
Tom Gilman, Managing Director for Kier Property in the North, commented: “This is an opportunistic
acquisition of a classic building in the heart of the city. Kier Property is increasing its investment
focus in Scotland and the north of England in key towns and cities including Glasgow, Edinburgh,
Manchester, Liverpool, Hull, Sheffield, Newcastle, Leeds, York andDerby. And this approach is
underpinned by an increase in joint venture activity with leading partners like FORE”.
BNP Paribas advised FORE and Kier, and Knight Frank advised M&G.
Read more about 50 Bothwell Street.