Construction work to develop Prime Grade A office space at Atlantic Square in Glasgow is to start in March this year.

The project is a joint venture between BAM Properties and TCP Developments, and LGIM Real Assets (Legal & General).

187,000 square foot of the development will house the next UK Government hub and will be funded by Legal & General Retirement, with BAM TCP Atlantic Square funding the remaining 97,000 sq ft of speculative space.

Secured by the development team, HM Revenue and Customs (HMRC) has formally signed an agreement to lease the new ten storey Building 1 at Atlantic Square, Argyle Street in Glasgow, for a minimum of 20 years. HMRC will be taking an estimated 187,205 sq ft of office space, eventually accommodating around 2,700 full-time equivalent employees from across the department by 2021. Atlantic Square is the 10th of the 13 new UK regional centres that HMRC has announced as part of its transformation plans to create a tax authority fit for the future.

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Adam Kerr, Head of Annuity Transactions, LGIM Real Assets, said: "This is a great deal for us and will act as a further catalyst for this area of Glasgow, regenerating a long vacant site, creating new jobs and driving economic growth."

Managing Director of BAM Properties, Dougie Peters said: "We are delighted to be working with LGIM and HMRC on this Grade A office development which will become one of 13 state-of-the-art regional centres for HMRC. Simultaneously, the BAM TCP Joint Venture is speculatively developing Building 2 at Atlantic Square because we believe there is a high level of demand in Glasgow for premium office space. BAM Properties has a long and successful history of knowing when the time is right for major commercial developments in Glasgow – such as 110 Queen Street and the Clarion Building and we are confident that Building 1 and Building 2 at Atlantic Square will be equally good news for Glasgow."

(CD/MH)