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.