Garroch Investments has acquired Princes House in Glasgow for an undisclosed amount.
Its redevelopment into Grade A offices - subject to planning permission - is expected to create around 1,200 new jobs and an end value in the order of £75m.
Originally constructed in the mid-1960s, the former home of Lloyds Banking Group, and more recently Barclays, is located within Glasgow’s central business district in a corner plot on Waterloo and West Campbell Street.
Andrew White, development manager at Garroch Investments, explained: “I have been looking for an office development opportunity in Glasgow for the last couple of years, and I am delighted that we have been able to secure such a prime opportunity in the current development cycle where there is such a shortage of Grade A accommodation.”
During the course of the transaction, the lease expired and the building became vacant.
Scottish arts and heritage charity Clutha Trust will be occupying the whole building until the period to demolition and agreed a short term letting at a nominal rent. They will act as a hub operator, providing office space for many different smaller charities in the city centre.
Savills acted for Garroch Investments, while the vendor was represented by Gerald Eve. Mosaic Architects has been appointed as architects.
Stuart Orr, director in the investment team at Savills Glasgow, added: “Only 2% of Glasgow’s total supply of offices carries an Energy Performance Certificate A rating, so clearly there’s a lot of work to be done in the city to improve the environmental and sustainability credentials.
“Subject to securing the necessary planning permission, it is Garroch’s vision to help provide a solution with a brand new building meeting the highest environmental credentials and providing the city with much needed new stock.”
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