Ediston has acquired 123-129 Buchanan Street, Glasgow as its latest purchase on behalf of Clydebuilt Limited Partnership for £16m in an “off market” transaction with Abrdn. The purchase price reflects a net initial yield of 7.93%.
The property occupies a prominent, 100% prime position on the west side of Buchanan Street, close to its junction with St Vincent Street in the heart of Glasgow City Centre and comprises a substantial, traditional Grade B listed sandstone building arranged over four floors and basement. The core income is secured over three retail units fronting Buchanan Street, let to Hobbs, Tiso and The White Company and a hair salon at first floor let to Fleeson and Robb. There is also office accommodation on the upper floors which is currently vacant, offering value add opportunities by either letting the existing offices or securing a change of use.
Buchanan Street is Glasgow’s prime retail pitch and is the second busiest shopping thoroughfare in the UK after London’s Oxford Street. It is estimated that pre-covid, Buchanan Street had 1,000,000 shoppers per week (source CACI). Despite the reduction in footfall during covid, we anticipate Buchanan Street retail demand and rents to bounce back closer to pre-covid levels, further enhanced by relocation demand for retail due to the impending redevelopment of Buchanan Galleries.