Lothbury Investment Management, on behalf of Lothbury Property Trust, has disposed of its retail and office holding at 78-90 Buchanan Street and 9-17 Exchange Place, Glasgow for £31 million. The purchaser is Pontegadea.
The sale represents an initial yield of 3.99%. The 35,000 sq ft property comprises retail, leisure and offices and produces annual rental income of £1.3 million.
Buchanan Street, known as Glasgow’s ‘Style Mile’, is home to a number of international retailers and is the second busiest retailing street in the UK, after London’s Oxford Street.
At the end of last year, Lothbury agreed an extension of Vodafone’s lease on their prominent corner unit by a further 10 years from December 2019 at £320 per sq ft ITZA, a 23% uplift and a new record rental for Buchanan Street.
Mike Toft, Senior Fund Manager and Executive Director of Lothbury Investment Management, said: “Buchanan Street has been one of Lothbury Property Trust’s top performing assets since we purchased it in 2013, as a result of repositioning the property after a number of asset management initiatives.
“The building was purchased from out of administration for £17.42 million. It was a key purchase as it fitted our strategy of investing in prime locations with excellent growth potential. Indeed, rental growth has remained good despite the downturn in retail, with rents rising from £260 to £320 per sq ft ITZA in just three years.
“However, with the challenges now facing the retail sector, this was a good opportunity to sell and reinvest in other areas, particularly the industrial and alternative sectors.
“The disposal is in line with our strategy of selectively reducing the fund’s exposure to high street retail.”
The building is currently fully occupied and let to Vodafone, Lush and Starbucks on the ground floor. The first, second and third floors, comprising 16,644 sq ft of Grade A office space, are occupied by Building Design Partnerships, BNP Paribas Real Estate and Drum Property Group on. The weighted average lease term is 8.8 years.
CBRE acted for Lothbury; Sheridan Property Consultants acted for Pontegadea.
This is the website of Lothbury Investment Management Limited of 1 Angel Lane, London, EC4R 3AB, United Kingdom, a company registered in England with registered number 04185370. Lothbury Investment Management Limited (or “LIM”) is authorised and regulated by the Financial Conduct Authority in the United Kingdom.
Lothbury Investment Management Limited is the manager of the Lothbury Property Trust ("LPT") and the Lothbury Global Feeder LP ("LGF") (together, the “Funds”). LPT is a sub-fund of the Lothbury Global Institutional Funds, which is regulated by the Central Bank of Ireland. LGF was established as a limited partnership in Jersey under the Limited Partnerships (Jersey) Law 1994 through the filing of a declaration of limited partnership. The Funds are alternative investment funds (“AIFs”) for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (the “Directive”). LIM has been appointed and acts as alternative investment fund manager (“AIFM”) in respect of the AIFs. For these purposes, LIM is authorised and regulated in the United Kingdom by the Financial Conduct Authority for the purposes of managing unauthorised AIFs (and for various other activities). The Funds are also unregulated collective investment schemes for the purposes of the United Kingdom Financial Services and Markets Act 2000 (the “Act”).
Certain jurisdictions may restrict by law access by their residents or nationals to the information on this website. The contents of this website are not intended to be accessed by, distributed to or used by residents or nationals of such jurisdictions. It is the responsibility of any person accessing this website to satisfy itself that its use of the website complies with the laws of any relevant jurisdiction. Under United Kingdom legislation, the promotion of units in the Funds by LIM is restricted by section 238 of the Act. The promotion of units by the Funds themselves or, in the case of LPT, by its trustees in the UK is restricted by section 21 of the Act. Accordingly, the information on this part of the website is directed only at and should only be acted on by:
The purpose of this website is to provide general information about Lothbury Investment Management Limited and the Funds. The Funds and Lothbury Global Feeder Limited but not any investors in these entities are clients of Lothbury Investment Management Limited. Nothing on this website is investment, tax or legal advice, nor is anything on this website a placement or offering to buy or sell units or any other investment. Tax treatment depends on individual circumstances and may be subject to change in the future. You should take your own independent investment, tax and legal advice as you think fit.
Please be aware that ultimately interests in the Funds may only be acquired by professional investors. A professional investor, for the purposes of LGF, is every investor that is considered, or may be treated, based on a request to LIM (as the AIFM), as a professional client or an eligible counterparty as those terms are used in exemption 7 of COB 4.12.4 of the Handbook of rules and guidance issued by the Financial Conduct Authority of the United Kingdom. A professional investor, for these purposes of LPT, is every investor that is considered, or may be treated based on a request to LIM (as the AIFM), as a professional client within the meaning of Annex II of the Markets in Financial Instruments Directive (2011/61/EC).
Subject to applicable law and satisfaction of any relevant notification or other requirement the Funds may be marketed (within the meaning of the Directive) within certain jurisdictions in the European Economic Area ("EEA"). Potential investors can request details of such jurisdictions from LIM. LGF is intended for persons who are not established or resident in the United Kingdom.
The information contained in this section does not constitute an offer or solicitation to any person or entity which is United Kingdom Resident for tax and investment purposes, to buy or sell shares or any other security whatsoever in other jurisdictions where it would be unlawful to do so, including but not limited to, Ireland and the United States of America.
Please tick that you have understood and accept the important notice set out above and agree to the matters addressed in it.