BAMTCP Atlantic Square, a joint venture between BAM Properties and TCP Developments, and LGIM Real Assets (Legal & General) have confirmed that work will begin in March 2018 on the development of circa 284,000 sq. ft. of Prime Grade A office space at Atlantic Square in Glasgow. 187,000 sq. ft. of the development will house the next UK Government hub and will be funded by Legal & General Retirement, with BAM TCP Atlantic Square funding the remaining 97,000 sq. ft. of speculative space.
Secured by the development team, HM Revenue and Customs (HMRC) has formally signed an agreement to lease the new ten storey Building 1 at Atlantic Square, Argyle Street in Glasgow, for a minimum of 20 years. HMRC will be taking an estimated 187,205 sq. ft. of office space, eventually accommodating around 2,700 full-time equivalent employees from across the department by 2021. Atlantic Square is the 10th of the 13 new UK regional centres that HMRC has announced as part of its transformation plans to create a tax authority fit for the future.
Legal & General’s forward funding of part of the development has enabled the joint venture of BAM Properties and TCP Developments to start the development of the two building scheme. The buildings have been designed by concept architects Cooper Cromar with further refinement by BAM Design and the scheme will be built by BAM Construction. Property firm JLL advised HMRC during the selection process while BAM TCP Atlantic Square were advised by Cushman & Wakefield, and Knight Frank acted for Legal & General. Construction work is expected to begin in March 2018. BAM TCP Atlantic Square is speculatively developing Building 2 which comprises 96,650 sq. ft. of high-quality office space and which will be complete and ready for occupation in 2020.
This letting represents Legal & General’s sixth Government hub forward funding deal and will see HMRC become one of the largest employers in Glasgow. LGIM Real Assets has secured the funding on behalf of Legal & General Retirement, which invests in high-quality, long-term UK assets that generate income streams that match its commitments to pensioners.