French investment firm Iroko Zen has acquired Morgan Stanley’s Glasgow office from KFIM for a fee in excess of £50m.
The 157,000 sq ft Grade A building at 122 Waterloo Street, which was sold by KFIM on behalf of overseas client, is let to Morgan Stanley until 2033.
Gary Cameron, head of Scotland at BNP Paribas Real Estate, which represented Iroko Zen on the deal, said: “This milestone transaction is significant for Glasgow’s office sector and serves as a reflection of the broader trends shaping the market including its strong rental growth prospects, top sustainability credentials and strategic location, all of which are becoming almost mandatory for certain investor groups.
“Since the start of the year, the Glasgow office market has been experiencing an improved flow of activity. The city continues to be a key destination for both domestic and international occupiers, thanks to its skilled workforce, and competitive operating costs compared to other major UK and European cities. There has been a steady demand for core high-quality space, driven by finance, technology, and professional services.”
“Looking ahead, the Glasgow office market is expected to continue its positive momentum. The city’s ability to attract major financial institutions, coupled with ongoing investments in infrastructure and regeneration projects, suggests a strong outlook for the sector. However, the market will need to continue adapting to broader economic challenges and the evolving needs of investors who continue to strive towards best in class income profiles and assets at a time where the pipeline of new stock is critically low.”
Knight Frank and Cushman & Wakefield acted on behalf of KFIM.
