Target Information

Westbrooke Alternative Asset Management UK (“Westbrooke”) has provided a senior debt facility to facilitate Longstock Capital’s acquisition of Atrium Court, a notable 104,000 sq ft office building located in the heart of Glasgow. Originally constructed in 1890 as the city’s main post office, Atrium Court was transformed in 1989 into a functional five-story office space while retaining its striking limestone façade. This combination of historic charm and modern efficiency renders the property highly appealing to tenants in the Glasgow office market.

Industry Overview in Glasgow

Glasgow’s office market has shown remarkable resilience, even amid fluctuating economic conditions. In the first quarter of 2025, the total office take-up reached 150,631 sq ft, considerably surpassing the five- and ten-year averages. This performance underscores a robust demand for premium, strategically located office spaces, despite the challenges posed by limited supply in the market.

Furthermore, leasing volumes in Q1 2025 were 32% greater compared to the same period in 2024, as reported by Savills. This trend indicates sustained interest from businesses seeking high-quality office environments that foster productivity and employee satisfaction.

As the city continues to evolve as a business hub, we observe a noteworthy shift in tenant expectations, with an increasing preference for workspace that blends historical character with modern efficiency. This shift is likely to propel more investments into properties that harmoniously marry heritage and functionality.

Consequently, the market outlook for Glasgow remains promising, particularly for well-situated assets that align with current tenant demand. Investors focusing on these characteristics are well-positioned to capitalize on Glasgow’s thriving office sector.

Rationale Behind the Deal

The strategic initiative by Westbrooke to support Longstock Capital’s acquisition aligns with their commitment to investing in quality assets led by experienced sponsors. By providing tailored financing solutions, Westbrooke aims to unlock value in properties that may not attract significant traditional capital. The unique blend of historical charm and modern utility in Atrium Court makes it a desirable investment.

Moreover, by enhancing the asset through targeted capital expenditure, Westbrooke envisions long-term value creation not only for their investment portfolio but also for the overall market. The combination of proactive asset management and a focus on strong fundamentals positions this venture favorably in a recovering office market.

Information About the Investor

Westbrooke Alternative Asset Management UK is recognized as an active lender in the office sector, particularly in markets where conventional lenders have retreated. Their focused investment strategy prioritizes partnerships with experienced sponsors, especially in geographically underserved areas. This approach enables them to deploy flexible financing solutions tailored for distinct investment opportunities.

Under the leadership of Harry Newall, Head of Origination at Westbrooke UK, the firm emphasizes a commitment to fostering long-term value in quality office environments. Their emphasis on well-located assets suggests a comprehensive understanding of market dynamics, ensuring that they remain competitive in a rapidly evolving landscape.

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The deal between Westbrooke and Longstock Capital for the acquisition of Atrium Court is strategically sound, considering the current market landscape in Glasgow. The building’s historic significance combined with its modern functionalities creates a compelling asset that is likely to attract quality tenancies.

Additionally, with Glasgow's office market retaining its resilience and witnessing a steady demand for well-located spaces, this investment could yield favorable returns in the long run. Westbrooke’s expertise and tailored financing solutions further enhance the potential for value creation and successful asset management.

Moreover, Longstock Capital’s established track record in managing similar properties increases confidence in the execution of this investment strategy. Their focus on enhancing the asset through strategic improvements is anticipated to resonate positively with future tenants.

In summary, this collaboration epitomizes a well-calculated investment approach targeting a burgeoning market segment. Given the right execution, this could be a fruitful partnership that capitalizes on Glasgow’s evolving office landscape.

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