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HFD lands Clydesdale Bank for mega Glasgow letting

By Paul Norman - Tuesday, May 15, 2018 10:22

HFD has signed the Clydesdale Bank for circa 110,000 sq ft of offices at its 177 Bothwell Street development in Glasgow as the Scottish city continues to enjoy a purple patch for major occupier moves.

HFD is in for planning to add a further floor of offices to the 240,000 sq ft proposed. The property at present comprises a detached office building of steel framed construction with glazed elevations, arranged over 13 floors, including a lower ground floor parking level located on the south side of Bothwell Street, bound by Douglas Street on the east and Pitt Street on the west.

Clydesdale is understood to be preletting 110,000 sq ft across the top five floors with rents for similar space in Glasgow expected to be at above £30 per sq ft.

Clydesdale Bank owner CYBG today announced plans for a new Glasgow headquarters as it revealed the cost of Payment Protection Insurance (PPI) compensation had plunged it into the red in the first half of the year. 
 in for planning for another floor Glasgow city council 240,000 sq ft 51 west George street to Ediston 177 Bothwell Street
Cushman and CBRE advised CYBG KF and CBRE are retained leasing agents HFD 
In excess of £30 per sq ft four buildings in offices in Leeds and elsewhere 
Clydesdale and Virgin Money and Edinburgh 
The group said the new head office building, to be built on a site in Bothwell Street, underlines the bank’s long-term commitment to the city. 
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CYBG makes takeover bid for Virgin MoneyHFD is at present in for planning to add a further floor to the 240,000 sq ft development.The property will comprise a detached office building of steel framed construction with glazed elevations, arranged over 13 floors, including a lower ground floor parking level located on the south side of Bothwell Street, bound by Douglas Street on the east and Pitt Street on the west.Clydesdale is understood to be taking the top five floors of the building with rents for similar space in Glasgow achieving in excess of £30 per sq ft.

The bank is moving out of a number of other offices in Glasgow including 51 West George Street, which was recently bought by Ediston, its head office in St Vincent Place, in the Guildhall in Queen Street and Granite House in Stockwell Street.

The group confirmed the new head office building would be on Bothwell Street but gave no other details this morning, saying it underlines the bank’s long-term commitment to the city.  

Cushman & Wakefield and CBRE are understood to have advised Clydesdale while Knight Frank and CBRE are the retained leasing agents on 177 Bothwell Street.

Clydesdale Bank owner CYBG also this morning posted a loss after tax of £76m compared to a profit of £30m in the same period last year.

The group said the loss was mainly due to legacy conduct costs of £220m, thanks prinicipally to PPI.

It is unclear what Clydesdale is proposing for its other UK offices. It emerged last week that it is in talks to merge with Edinburgh headquartered Virgin Money.

Grant Lonsdale, Analyst, CoStar said: "This letting – the city’s largest to a private sector occupier for more than two years – is the latest good news story for Glasgow, which is currently enjoying exceptionally strong demand from both occupiers and investors. Indeed, the city posted its best ever quarter for office investment in Q1 2018, according to CoStar’s data."

CoStar’s latest Glasgow office report can be found here.

pnorman@costar.co.uk

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