Protego Real Estate Investors, advised by King Sturge has purchased a Grade A Glasgow city centre office building from ING Real Estate for £6m.

This reflects a net initial yield of 7.76% rising to 9.4% on letting of the vacant floor.

The building on 220 St Vincent Street was substantially refurbished in 2007/8 and is arranged over six floors, extending to 25,461 ft² (2,363.68 m²), together with 17 car parking spaces.

The current passing rent is £492,658 per annum and the tenants include CIGNA Life Insurance, Towry Law Financial Services and Hiscox Insurance Company. There is one floor remaining available.

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Darren Hutchinson, director at Protego said: "This property is an excellent example of the quality of offices we are seeking to acquire, being located in prime pitch, providing grade A accommodation and being let to good quality covenants at affordable rents. We are now aiming to make further acquisitions of this quality across the UK."

Richard Mackie of King Sturge added: "This off market deal represents good value and underlines the investor demand for quality product. The strong fundamentals of the building will ensure the investment is well placed for recovery stage of the cycle."

King Sturge advised Protego Real Estate Investors, whilst Ryden and CBRE advised ING Real Estate.

(GK/JM)