Boutique real estate investment manager Ardstone Capital has sold Sentinel, a prime Glasgow office scheme, to a joint venture between Scottish property firm Ediston and Strathclyde Pension Fund for £19.6 million.
The circa 84,000-square-foot property was sold by the investment manager on behalf of Ardstone Regional Office Fund, a joint venture with CBRE Investment Management.
It has been acquired by Clydebuilt II Limited Partnership, a joint venture between Ediston and SPF, with the new owners saying the Waterloo Street offices' income can be improved through active asset management and the letting vacant floors.
Those already in the building include JLL, legal firm DWF, insurance provider Chubb, energy expert Aggreko and Sedgewick International, the risk and claims administration partner.
The office, spread over ground and nine upper floors underwent refurbishment in 2022 and provides an all-electric specification, EPC ‘A’ rating and WiredScore ‘Gold’ certification. CoStar data shows it last traded for circa £25 million.
Calum Bruce, fund manager of CLP II said in a statement: "Sentinel provides Clydebuilt with an attractive income stream which can be further improved through active asset management and the letting of the vacant floors.
"In a market with a limited supply of high-quality office accommodation, Sentinel is an attractive opportunity for tenants looking for new premises, with good interest already being shown by prospective occupiers."
Lismore Real Estate Advisors represented Ardstone Regional Office Fund. Lismore director Simon Cusiter added: "The sale of Sentinel represents one of the most notable office investment transactions in Glasgow city centre this year, reinforcing investor appetite for prime, income-producing assets in Scotland’s largest city.
"Ardstone Capital repositioned the building, helping attract high quality tenants and providing a platform for future performance. The quality of the building was highlighted by the competitive nature of the sale process."
A number of Glasgow offices have been put on the block in recent months, with BNP Paribas REIM looking to sell Central Exchange, a circa 95,000-square-foot, multilet Glasgow office, for £23.7 million.
Savills has also been appointed to sell Eastgate, a 56,537-square-foot office at 727 London Road in the Clyde Gateway regeneration area of the city, by Tarian Trustees.