Investment Overview/Strategy
Landmark Grade A office building in Glasgow City Centre extending to 156,853 sq. ft. offering column free floor plates up to 30,000 sq. ft over 7 floors.
At acquisition, the building was dominated by the occupation of Barclays who had a lease over several floors which provided a substantial ongoing net income position with an opportunity to redevelop/reposition the building at expiry.
The first and second floors were comprehensively refurbished in 2016 with Regus, under their Spaces brand, taking the second floor shortly thereafter.
Business plan: Barclays initiated their lease break options and vacated the property in November 2021 providing the opportunity to update and reposition the building to deliver contemporary Grade A specification space at a competitive rent.
Action taken since acquisition: Second floor (29,223 sq. ft.) was let to Regus in October 2016 - the first launch in the UK, outside of London, of their ‘Spaces’ concept which provides 300 Bath Street with let ready space.
Agreement was reached in September 2024 to retain the University of Glasgow on a new 5-year lease of the first-floor east suite (9,791 sq ft) following break options being exercised on both first and sixth floor leases.
First floor west suite (9,439 sq. ft.) was let to ESR Europe LSPIM in November 2021 for a ten-year term with break option at the end of the 5th year of the term.
Agreement was reached with Eaton (10,262 sq. ft.) to surrender their lease at the end of January 2022 just ahead of their lease expiry in February 2022. This was required to facilitate a letting to Fairhurst on a new 10-year lease subject to a tenant break option at the end of the 5th year at a rent which reflects £20.43 per sq. ft.
Re-branding of the asset from “Tay House” to 300 Bath Street is now complete.
Completion of the comprehensive reconfiguration of the entrance to the building from Bath Street creating a new hosted reception, lounge and event space, wellness facilities including cycle storage, fully equipped gym, showers, updated branding and marketing of the available office space and regular tenant engagement including events and social activities concentrating on staff wellness.
The completed show suite on the 4th floor (east part) provides our refurbished example of space we can demonstrate to potential occupiers which is a combined temporary large event space for 300 Bath Street.
Current and Future asset management initiatives: Agreement for leases completed with Securigroup Limited on 5th floor west wing (9,500 sq ft) for 10-year term at headline rent of £21.50/sq ft and part ground floor east wing (2,900 sq ft) for 3-year term at £14.50/sq ft) for 5 years are now signed with works scheduled to complete in November. A 10-year lease of part of the fourth floor east (4,220 sq ft) with Charles Scott & Partners Consulting Engineers Limited at a headline rent of £21.50/sq ft commencing 22 August 2025. Works for the Securigroup letting on the ground floor east wing will also see the creation of a let ready suite of 3,400 sq ft to be offered on an all-inclusive basis. The intention is to roll this offer out by way of refurbishment of the ground floor west wing to include a café offer onto Sauchiehall St and additional entrance to the building enabling the offer of a wide range of suite and floor sizes in both a speculative and deal led basis.
An ongoing focus on energy reduction measures continues. The first phase involved changeover of the garage lighting to LED and sensors, enabling reduced energy consumption. Next steps will address BMS and controls to include ‘4D’ sensor monitors.