MoD to sell Glasgow office property for ┬ú47m
The Ministry of Defence is selling its Glasgow office space, which it uses for administration, payroll and personnel work, for a reported sum of ┬ú47m.
According to the Sunday Herald, the property is to be sold in a leaseback deal which will allow the MoD to continue leasing the office space for the next 20 years.
The sale has sparked news of a revival in the Glasgow office space and commercial property market. Speaking to the Sunday Herald, David Hunter of property consultancy Hunter Advisers, said:
“There is a huge amount of money waiting to get into the UK property market. A lot of it is opportunity fund money, which is demanding returns in the high teens or even 20%, although it’s not clear whether the pricing of investments would accommodate that kind of level.
“But also, with property prices having fallen by as much as 50%, institutions are recognising that there is value in the market. If you have got a ready property to sell on a reasonable income stream, there will be a market for it. In this respect, central London offices have been active for more than the last six months.”
The property initially cost ┬ú18m at its completion in 1981. A spokeswoman for the MoD is reported to have said that the reason behind the sale is to unlock capital for spending in the defence estates.