On behalf of the Moorfield Real Estate Fund III (MREF III), Moorfield Group (Moorfield) has sold Atlantic Quay 3, in Glasgow City Centre to LGIM Real Assets (Legal & General) for £50 million.
Atlantic Quay 3 is a 79,500 sq ft high quality modern office built to a ‘Grade A’ specification and is fully let on a long-term lease to the Scottish Courts and Tribunals Service.
Newly refurbished Atlantic Quay 3 features a new double-height reception; new VRF air conditioning system; new LED lighting; three 13 person lifts with a separate goods lift. The building benefits from 24-hour security, 31 secure car parking spaces and 100 cycle racks in the basement.
MREFIII acquired Atlantic Quay 1, 2 and 3, which comprise 280,000 sq ft of office space, in September 2015 for c.£60 million, reflecting an initial yield of 8.5% for the three buildings. Moorfield is partnered with Resonance Capital to manage the three buildings.
The entire Atlantic Quay area comprises a unique office complex that fronts the River Clyde. It is just a short walk from Glasgow’s main shopping, leisure and entertainment districts and accessible to all major road, rail, air and bus links.
Commenting on the disposal on behalf of MREFIII, Charles Ferguson Davie, Chief Investment Officer, Moorfield, said: “We identified the Atlantic Quay buildings as high quality offices at the heart of Glasgow’s International Financial Services District, in a prime riverside location and in an office market starved of new space. They were ready for refurbishment when we purchased them in September 2015 and we are proud to have developed such a successful scheme with Resonance Capital.
The recent lettings in the vicinity (including the Government Property Unit’s selection of Atlantic Square for a 300,000 sq ft regional hub) also support our belief in the quality of the location. The evolution of Atlantic Quay is underway and we will continue to work on fulfilling the potential of Atlantic Quay 1 and 2.”
Legal & General was represented by Savills and Addleshaw Goddard.