Glasgow is the largest city in Scotland and the third largest in the UK with a population of approximately 608,500. The Greater Glasgow conurbation (2011 census) had a population of 2.3 million accounting for more than 40% of Scotland's entire population.
From a traditionally industrial employment base, the city has successfully promoted itself to become an established of office location, attracting inward investment on a national and international basis. Glasgow is now Scotland's largest centre of employment with 84% of employment being in the service sector, including financial, public administration and business services.
Glasgow has a highly educated workforce, with 40% of the working age population educated to degree level or higher. There are over 130,000 students in the city attending the five higher education institutions and the three super colleges, providing a skilled local labour pool and making Glasgow an attractive destination for business. Glasgow Caledonian University is a Chartered Institute for Securities & Investment Centre of Excellence, the first specialising in financial services operations and risk, joining an exclusive group of just three universities outside London. Both the University of Strathclyde and the University of Glasgow Business schools are triple accredited. Only 1% of business schools worldwide hold this distinction.
Further information is available in the marketing particulars.
The Equinox comprises a landmark of office building, completed in 2002.The building provides a total of of 67,851 sq ft of Grade A accommodation arranged over ground and seven upper levels, with 28 secure car parking spaces demised.
The building has a striking tower at the corner of Cadogan Street and West Campbell Street, with the main entrance at Cadogan Street leading into an impressive full double height reception area. From reception are two scenic and one standard passenger lifts, plus a stairway serving all levels. The building has the benefit of roof gardens at first, second and third floor levels, plus a smoking area at ground floor.
The building is of steel frame construction with the office accommodation arranged in a horseshoe shape behind a central core. The main core contains lifts and stairway plus WCs, and two further cores situated at opposite ends of the floor plates provide further male and female WCs, two fire fighting lifts and escape staircases.
Heritable (Scottish equivalent of English freehold).
The property is let in its entirety to esure Property Limited on a single full repairing and insuring lease (guaranteed by esure Holdings Ltd) for a term of 20 years until 3 October 2030, without break.
The total annual rent passing is £1,860,000 per annum, reflecting £27.11 per sq ft on the office space assuming £10 per sq ft on storage areas, £2,500 per car parking space and half rate on the ground floor reception. The rent is subject to upward only open market rent reviews at 4 October 2020 and 2025.
esure is an internet focused insurance company and a household name in the UK, founded by Sir Peter Wood.
Originally a car insurance and home insurance business, esure have gradually expanded to also provide travel and pet insurance, and both Sheila's Wheels and Gocompare.com brands are part of the group. HBOS, by then Lloyds Bank, were bought out of their 70% share by Esure Group Holdings in 2010 for a reported £185m. Esure Group plc then began trading on the London Stock Exchange on 27 March 2013 as esureGroup plc.
esure now employs over 1,500 staff in the UK, with The Equinox being their largest office having a total staff of approximately 1,000 people.
For the financial year to 31 December 2016, the tenant esure Property Limited had a turnover of £5,442,000 and a tangible net worth of £30,593,000, with a Dun & Bradstreet rating of 4A1, representing a minimum risk of business failure. The guarantor esure Holdings Limited has a D&B rating of 5A1.
The asset is elected for VAT which will therefore be payable on this transaction, however it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Offers are invited in excess of £33,300,000 (Thirty-Three Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client's Heritable interest in the property.
This represents an attractive net initial yield of 5.49% and a capital value of £491 per sq ft, assuming acquisition costs of 1.80% through the purchase of the Luxembourg SARL.
The Equinox is part of the Amundi Collection of eight UK properties located in London, Glasgow and Cardiff. These assets are available individually or as a portfolio.
Full details can be found at