One of Glasgow’s best-known office buildings has been sold for £19.6 million in a transaction seen as a vote of confidence in the city’s commercial property market.
The Sentinel building, a Grade A office block on the corner of Waterloo Street and Douglas Street, was acquired by Clydebuilt II Limited Partnership, a joint venture between the Scottish property company Ediston and Strathclyde Pension Fund.
The property was sold by Ardstone Capital’s Regional Office Fund, a joint venture with CBRE Investment Management, with Lismore Real Estate Advisors acting on its behalf.
The 84,095 sq ft building, which includes 26 basement car parking spaces, underwent a comprehensive refurbishment completed in 2022.
ALL-ELECTRIC SPECIFICATION
The upgrade introduced an all-electric specification and improved sustainability standards, giving the property an EPC ‘A’ rating and WiredScore ‘Gold’ certification. The repositioning helped secure tenants such as JLL, DWF, Chubb, Aggreko and Sedgwick International.
The sale marks one of the largest office investment transactions in Glasgow this year, at a time when the Scottish office market has been under pressure from subdued occupier demand and cautious investor sentiment.
Simon Cusiter, Director at Lismore, says: “The sale of Sentinel reinforces 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.”
LONG-TERM OPPORTUNITIES
Calum Bruce, fund manager of Clydebuilt II, said the acquisition offered both immediate and longer-term opportunities.
And he adds: “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 limited supply of high-quality office accommodation, Sentinel is well placed to capture demand from tenants seeking new premises.”
