CEG has secured equity funding from its existing investors, primarily sourced from Swedish State Pension Funds AP1 and AP4, managing two of the buffer funds in the Swedish public pension system. AP1 and AP4 have a strong commitment to sustainability and have a long track record of investing in UK regional cities with CEG.
With full planning permission in place for the around 300,000 sq. ft office development, and the site already cleared and enabled for construction, the development will complete in summer 2025.
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Paul Richardson, investment manager at CEG, said: "The start on site with this speculative development is testament to CEG’s confidence in the Glasgow market. The city is suffering from an acute lack of Grade A office supply and 33 Cadogan Street will help to remedy that.
"A best-in-class office development, targeting the highest sustainability credentials, it will respond to occupier’s demands for Net Zero Carbon in operation office space, as well as providing fantastic amenities and a healthy and productive place to work."
Glasgow based architects, Cooper Cromar, has helped CEG enhance the sustainability credentials in the design of the new development. JLL and CBRE have been appointed as joint agents to market 33 Cadogan Street.
Andy Cunningham, senior director CBRE, said: "The flight to quality has diminished the availability of top-quality office space in Glasgow and Covid-19 only accelerated this trend. With no new build development being delivered until 33 Cadogan Street completes in Summer 2025, we anticipate pent up demand from occupiers."
