Scottish university campus up for sale

By Chris Borland - Friday, May 19, 2017 12:22

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HFD Property Group has brought the University of The West of Scotland’s campus in Hamilton to market in what is likely to be one of the largest investment deals north of the border this year.

HFD has appointed CBRE to seek offers for the 235,000 sq ft office campus which is pre-let in its entirety to the university. 

The trio of EcoCampus buildings are each let to UWS on separate 35-year leases at £3m per annum, with fixed annual uplifts of 1.50%. The university is set to take occupation upon completion of the CAT A works, scheduled to complete by the end of September.

Stephen Lewis, managing director of HFD Property Group, said: “Given the attractiveness of the asset itself, the long income with fixed increases and the unique nature of its sustainability credentials, we believe that there will be very strong interest. Whilst convention is to provide a guide price we believe that it is only ultimately an investor that can determine the value of this specific investment to them.”

The three buildings known as EcoCampus were speculatively developed to shell condition by HFD in 2011 as the final development of the Enterprise Zone. The University of the West of Scotland (UWS) achieved planning consent in April 2016 to convert the existing three EcoCampus buildings, from office use to university use.

HFD then secured a £39.7m three-year development facility from Bank of Scotland to help build out one of the UK’s ‘greenest’ university campuses.

The green funding agreement was both the first in Scotland and the largest loan yet under Lloyds Bank Commercial Real Estate’s Green Lending Initiative. Under the terms of the deal with the Bank of Scotland, HFD is eligible for a margin discount of up to 20bps providing it continues to meet specific sustainability covenants written into its agreement.

CBRE is representing HFD Property Group.

cborland@costar.co.uk

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