PROPERTY investment and development company CEG has appointed national construction company, McLaughlin & Harvey, to commence construction works for the landmark development at 33 Cadogan Street (formerly known as The Grid).
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 c.300,000 sq. ft office development, and the site already cleared and enabled for construction, the development will complete in summer 2025.
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.”
Alistair Reid, Director at JLL, added: “33 Cadogan Street has been designed with sustainability and occupier amenity at its heart, to further support the return of occupiers to the office in a post-pandemic world. Targeting Net Zero Carbon in operation, the building aims to align with occupiers’ corporate carbon reduction goals”
CEG has a track record of delivering award-winning offices in Scotland. Following the development of Aurora on Bothwell Street in 2006, the company helped to kickstart the regeneration of the area with its 178,000 sq. ft new build. The successful speculative development was fully let within six months of completion.
The company’s Onyx development in Glasgow was recently redeveloped to deliver a new café, an extensive range of facilities for cyclists and new flexible Let Ready studios, providing fully furnished grow-on space for smaller companies and project or satellite space for larger firms.