Client: Zurich Assurance
Breckenridge House is a traditional office and retail property located on Sauchiehall Street – one of Glasgow's most famous thoroughfares and a popular shopping street.
The 40,395 sq ft investment was acquired by Zurich Assurance in the early 1990’s as part of a larger portfolio, but was identified as surplus to requirements in autumn 2007.
We were appointed as the disposing agents for Zurich Assurance.
The solution
The final months of 2007 was a difficult time for investors and their advisers. Weakening prospects for the global and UK economy created a sharp adjustment in yields in the autumn, causing a significant drop in investor appetite for commercial property. But we knew that with careful thought and a targeted approach, investor demand for the right property would be unearthed.
Our investment team drew up a shortlist of potential purchasers and approached them with an off-market opportunity. Originally built in 1855 but redeveloped in 1990, the property was let to 13 tenants and was held on a long leasehold interest of 125 years, expiring in November 2010. It had medium-term active management opportunities that would be particularly attractive to investors with residential development interest and experience.
The results
Having been placed under offer in September 2007, the deal concluded in December with the original price intact. The property was sold to Larkhill Properties, an Irish property company, for £12.03m, reflecting an initial yield of 6.7% and an equivalent yield of 6.9%.
|
|