Quadrant Estates and KKR have sold the Sauchiehall Building in Glasgow to Saudi-based investor Arbah Capital, fronted by James Caan’s 90 North Group.
The retail, leisure and car park scheme, located on Sauchiehall Street and Bath Street, was sold for £55m, reflecting a 6.3% net initial yield.
Montagu Evans initially marketed the block on behalf of the joint venture for £60.6m for shares in a Luxembourg special purpose vehicle, net of debt, at a 6% yield.
The high street property ultimately sold at a premium to purchase price, having initially been bought in 2015 for around £46.5m at a 7% yield. Its principal tenants include Primark, TK Maxx, Sports Direct and a multi-storey car park.
It is understood that the value of the building was boosted after a number of leases were regeared. The site has an average WAULT of 16.8 years to expiry, with 15.8 years to break options.
Arbah is not a stranger to the UK market, after it provided a mezzanine financing facility of up to £50m to the Regent’s Crescent residential development in central London last year, among a consortium of lenders. However, the Sauchiehall deal is thought to be its first major real estate purchase outside its domestic market.
JLL advised 90 North on its acquisition.View all our news