STV’s media studios and HQ facility at Pacific Quay, Glasgow, have been acquired as part of an £80 million property investment deal by real estate investment trust LXi REIT.
LXi REIT also acquired a life science and biotech campus in York and a waste recycling and storage facility in Aberdeen, and sold a Lidl foodstore in Chard, Somerset.
LXi REIT said: “The company has acquired, through an off-market transaction, STV’s media studios and HQ facility in Pacific Quay, Glasgow.
“The media facility, which was purpose-built for STV, comprises 63,000 sq ft over four floors, along with 150 car parking spaces.
“It is mission critical for STV’s business, containing all of STV’s live news studios, along with editing and data storage and processing facilities.
“The property remained open throughout the pandemic.
“The media facility benefits from a new, unbroken 20-year lease to STV plc, demonstrating the tenant’s commitment to the site.
“The current rent reflects a low £16.25 psf, which is highly reversionary.
“Grade A office rent in Glasgow is currently in the order of £35 psf.
“The rent, during the lease term, increases five yearly at a fixed rate of 1.5% pa.
“The media facility is well located on the south side of the Clyde at Pacific Quay.
“The area has become Glasgow’s media and tech hub and is also home to BBC Scotland.
“Barclays have recently agreed to occupy 300,000 sq ft at Buchanan Wharf, which is to the east of the site.
“Over the adjacent bridge are the SSE Hydro, SEC Centre and SEC Armadillo, which are Scotland’s leading events venues.
“STV plc, which is listed on the London Stock Exchange, is Scotland’s equivalent of England’s ITV and forms a key function as a national broadcaster and content producer.
“The lease benefits from the full PLC covenant.”
Simon Lee, partner, LXI REIT Advisors, said: “These transactions demonstrate the company’s continuing ability to make accretive and secure long income investments across a wide range of structurally supported sub-sectors, including its first investment in the life science arena, as well as highly profitable disposals.”