THE investment firm behind one of the few Grade A speculative office developments in Glasgow has appointed a construction firm for the £23 million project – and signalled its appetite to expand its presence further in Scotland.

FORE Partnership has awarded Bowmer + Kirkland the contract to construct the 96,000 sq ft office block on Cadogan Street, which will place strong emphasis on environmental sustainability and the well-being of its tenants.

It comes more than three years after FORE, which invests on behalf of private family offices around the world, acquired the site in June 2016 – when the contracts were exchanged a week before the Brexit vote.

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Aurelien Collignon, associate director of FORE, noted there was a pause in activity after the site was acquired as the market took stock of the Brexit result. FORE also took the opportunity to alter the existing planning consent to allow it to put its environmental and wellness stamp on the project.

Now, with construction on the building under way now, Mr Collignon expects there to be strong demand for tenancies, citing the strength of the local market, despite Brexit uncertainty, and the dearth of Grade A office accommodation in the city.

Mr Collignon said: “When we reviewed the Glasgow real estate market, the fundamentals were really, really strong. There was limited stock available, and a lot of it was older townhouses where the space is compromised.

“The demand was really, really strong. Vacancy was below 2% in Grade A space – you don’t find that anywhere else in the regions. Glasgow, as of today, is the most dynamic market in the regional UK.”

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Cadworks is one of the few speculative projects in the planning for Glasgow, which some commentators feel is a barrier to growth for the city. Other projects include Atlantic Square 2 in the International Financial Services District, which is due for completion in the third quarter of next year.  Work is also under way at 177 Bothwell Street, where HFD Property Group is developing 313,116 sq ft of office space. Clydesdale Bank owner CYBG has signed a 22-year lease for more than 116,000 sq ft at the building.

FORE is aiming to complete Cadworks by the second quarter of 2021, noting that it expects 200 jobs to be expected to be created by the construction process.

Asked whether Scotland holds strong appeal for global commercial property investors, Mr Collignon said: “Absolutely, we made a conscious decision to really go and invest in Scotland, and very specifically in Glasgow.

“We are a pan-European investment platform. The same way I look at Glasgow I will look at look at Barcelona, Paris and Amsterdam.”

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Mr Collignon noted that the start of building work signifies the start of a major marketing push to find tenants for Cadworks. He said the initial feedback has been “very positive”, noting that the underlying demand for Grade A office space in the city is strong.

Mr Collignon added: “More and more, we are hearing directly from occupiers that they are conscious of [a] very limited offer.”

Mr Collignon emphasised the FORE philosophy is to place sustainability and the well-being of tenants at the heart of the buildings it develops, which he said reflects the demands of its investors. Its plans for Cadworks include a cycle-in access ramp, with high ratings for its environmental impact and energy efficiency targeted on key measures.

Tenants will be able to download a Cadworks app, which gives access to amenities at the building. FORE has also established a partnership with social enterprise Soul Riders, which repairs unwanted bicycles as part an effort to increase bike use to help people access jobs, and improve well-being.

Cadworks is not the only Scottish property on FORE’s books. It bought 50 Bothwell Street in Glasgow shortly after Cadworks in 2016, and has owned New Telecom House owned in Aberdeen since in 2014.

While Cadworks is currently the primary focus, Mr Collignon said FORE will continue to scour the Scottish market for further opportunities. “We keep looking at Scotland the same way we keep looking at other regional cities and London, and some of the key gateway cities in Europe,” he said.

“We are opportunity driven and Scotland is firmly on the map for us – that is not going to change.”

Alan Johansen, regional managing director of Bowmer + Kirkland, said: “We are delighted to have been appointed as main contractor for a building that will not only meet the urgent demand for top-quality city centre space, but will also be the country’s most sustainable.

“Cadworks is one of the city’s most high-profile sites and we look forward to bringing our team’s unparalleled expertise to this new and welcome addition to Glasgow’s skyline.”