A South Korean fund, clients of Knight Frank Investment Management, has acquired a period bank property in Glasgow, Scotland in an off-market deal for £48.4 mln (€54 mln).
The asset was divested by Savills Investment Management, under advice from Savills. The owners recently completed a major refurbishment of the property's 100,000 ft2 (9,200 m2) of office space, while retaining its original listed facade and the historic banking hall.
'110 St Vincent Street is one of Glasgow’s most impressive buildings and represented a rare opportunity to acquire an iconic building with a long-standing tenant,' said Alex France, associate director at Savills in Glasgow.
'Glasgow continues to draw interest from international investors recognising the strong fundamentals of the market and attractive yields on offer,' France added.
Originally constructed in 1927, the city centre property was designed by architect James Miller as the head office of The Union Bank of Scotland. Following a merger with the Bank of Scotland, it became the group's headquarters.
'The deal for 110 St Vincent Street underlines the resilience of the Glasgow office market, despite an uncertain macro-economic backdrop,' added John Rae, head of office at Knight Frank Glasgow, advisors to Knight Frank Investment Management.
'The city’s fundamentals are strong, with demand continuing to outstrip supply, and it offers a discount relative to other UK regional centres,' Rae noted. 'Overseas investors have come to represent a significant portion of the market in recent years and we believe that will remain the case, with interest continually coming in from new sources.'
Knight Frank Debt Advisory advised the buyer on aspects of debt.