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.
Removal of the University of Glasgow’s (20,094 sq. ft.) break option in September 2019 extending occupation to September 2029 subject to tenant break option in September 2024. Half of first floor (9,791 sq. ft.) let to University of Glasgow on new lease from February 2019 on a coterminous term to sixth floor re-gear.
Letting the first floor suite (9,439 sq. ft.) to LSPIM completed 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, and 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 showsuite on the 4th floor (East part) provides our refurbished example of space that we can demonstrate to potential occupiers which is a combined temporary large event space for 300 Bath Street.
Current and Future asset management initiatives: The creation of a new entrance onto Sauchiehall Street with café, street accessible event space and smaller suites will enable and facilitate move to flexible work space where we can provide enhanced cat A plug and play capability to satisfy smaller office suite enquiries and will enable us to commence a roll out of small suites on the back of having one ready for occupation on a rolling programme to satisfy the current market requirement for occupation ready accommodation.
The University of Glasgow have exercised their break option to vacate two thirds of their occupancy in 300 Bath Street. Terms are being finalised to retain their occupation of the 1st floor. A further 35,000 sq. ft. is in advanced negotiation. Potential interests for let ready space are being targeted for our ground and 3rd floor space.
Our next phase will include a new street frontage onto Sauchiehall Street, external planting to soften the street level external areas around the building.
Improved building BMS is now being progressed as part of ongoing energy reduction measures.