GLASGOW, SCOTLAND-A fund sponsored by Tristan Capital Partners has purchased the new 100,416-square-foot Cuprum office building here for $36.7 million. The Curzon Capital Partners III fund purchased the troubled property from its lender, Lloyds Bank.
The six-story office, located at the west end of Argyle Street in the Codogan Square development, has floor plates of more than 15,000 square feet. Completed in 2008, there are no tenants yet in the building, which is being jointly marketed by Jones Lang LaSalle and DTZ.
Taylor Wimpey developed the property and sold it to property investment firm Kenmore Property Group, which has since gone into receivership. Lloyds Bank has taken over the property from administrator Grant Thornton. The deal was financed by HBOS, which became part of Lloyds Bank.
The property was built along with a 122-apartment complex, but the multifamily portion was not included in this purchase. The total cost for development of both properties was more than $80 million.
The Curzon fund purchased the property at a net initial yield of 9%, according to a Tristan statement. This is the first purchase by the fund, which is expected to confirm a second investment by the end of the month, according to the statement.
Ric Lewis, Tristan’s CEO, said in the statement that there’s been a chronic lack of office development in Glasgow in the past three years. “With little or no further speculative development planned over the next 24 months in a market already showing tightness, we are confident that the Cuprum building will attract tenants within a short time period,” he said.
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