Kames Capital's Property Income Fund has acquired a prime HQ office investment at 200 Renfield Street in Glasgow from Cording Danmerc Limited for £13.7 million, representing a net initial yield of 8.07%.

The property generates an annual income of £1.17 million and is fully let to Newsquest (Herald & Times) Ltd until 2030, with a tenant break option in 2020. Extending to 53,330 sq ft (4,954 sq m) with 82 secure underground car spaces, the modern office building sits within a 1.6 acre (0.7 hectare) site, and occupies a highly prominent location at the northern edge of Glasgow's CBD.

Mark Fleming, investment director at Savills who advised Kames on the acquisition, comments: "Our client was attracted to the quality of the building combined with the secure income, rental tone, low site cover and very generous car parking provision for a building set within Glasgow's CBD.

Cording Danmerc Limited was advised by JLL.

distributed by