AWG Property and Baronsgate Estates have bought an office block in the centre of Glasgow.

The eight storey, 38,000 sq ft office at 124 St Vincent Street let to Commercial Union, has been sold by Dawnay Day for £8.8m.

Commercial Union’s lease runs out in April and the price paid represents a net initial yield of 5.6%.

Development options

Stephen Kelly, Director at AWG Property said: ‘We have a range of options available to us in terms of how we deliver the building back to the market - from a rolling, floor by floor, refurbishment programme, to a full, comprehensive redevelopment.'

The acquisition is AWG and Baronsgate’s third together. The joint venture partners currently own the Braes Shopping Centre in Castlemilk on the outskirts of Glasgow.

Ryden advised AWG Property and Baronsgate Estates while Lambert Smith Hampton acted on behalf of Dawnay Day.