Shepherd and Dougray Smith appointed joint agents of Custom House Hotel development opportunity in Glasgow

Acting on the instructions of A O’Keefe and E Mackay of AlixPartners, administrators of Ashcap (CNC) LLP, Shepherd Chartered Surveyors and Dougray Smith have been appointed joint agents of the Custom House Hotel development opportunity in Glasgow.

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The opportunity is to purchase the Grade A Listed Custom House and adjoining land situated on Dixon Street and Clyde Street overlooking Glasgow’s waterfront. The property has planning consent for development of a 14 storey new build 209 room full-service hotel development incorporating a restaurant and bar, conference and meeting facilities, and gym and leisure facilities.

The development is located within the southern periphery of Glasgow’s Central Business District and has excellent communication links, with access to the M8 Motorway.

The wider area, including Custom House Quay, Custom House Gardens and Carrick Quay, form part of a high-quality scheme to transform the waterfront with mixed-use development comprising hotels, designer retailers, luxury flats and a 24-hour promenade including restaurants and bars, the aim being to create an extension to the retailing and commercial activities within the city along the riverside.

Presently vacant, Custom House was once an operational customs office and was more recently occupied by the Procurator Fiscal. Located within an Outstanding Conservation Area, the building and its curtilage is category ‘A’ listed.

The scheme is effectively arranged in two linked 14 storey towers, the first sitting behind Custom House, the second fronting Dixon Street. The public areas are arranged over ground and first floor levels, with the primary dining, bar and function space situated within Custom House. There is a small ‘dry’ health club facility on the second floor, with the remaining space being made up of bedrooms.

The bedroom accommodation is arranged over the upper floors of the new build towers, being situated on the second to the twelfth floors, with a room mix comprising king, double queen and junior suites.

Shepherd Managing Partner Steve Barnett said: “Glasgow has become one of the UK hotel sector’s unexpected success stories as Scotland’s largest city continues to benefit from a number of initiatives that have boosted its popularity as both a leisure and business destination.

“Since the global economic slowdown in 2008, passenger numbers at Glasgow International Airport have steadily increased year-on-year, from both international and domestic passengers. Glasgow’s triumph as the host of the 2014 Commonwealth Games and the development of the SSE Hydro Arena, now one of the world’s top three event venues, have helped boost visitor numbers along with hotel occupancies.

“Increased visitor numbers and a solid performance from hotels have served to boost investor interest. Last year saw 350 new rooms added to its supply with a further 1,100 due to come on stream over the next 12-18 months. While the city’s hotel supply is a balance of budget and full-service offers, those under development are more lifestyle-midscale orientated, appealing to a broader clientele.

“International hotel groups choosing to introduce their latest concepts to Glasgow will help to lift the tone of the city’s hotels. There are a number of operators with requirements in Glasgow and Premier Inn have already committed to the area for a new hotel.

“Consequently, we anticipate keen interest for this Custom House Hotel development opportunity, as its existing consent, or indeed for alternative uses, such as residential development, subject to planning.”

Interested parties are invited to register interest with the joint selling agents on tel 0141 331 2807 or 07808 479215.

ENDS

For further information please contact Steve Barnett on tel 0141 331 2807 or Chris Dougray on 07808 479215

Issued on behalf of Shepherd Chartered Surveyors by Liquorice Media tel 0187 738 2961 www.liquorice-media.com

Date: 11 May 2017

Notes to Editors

• Designed by customs officer John Taylor and opened in 1840, Custom House is a large south facing classically styled blond sandstone building sited on the north side of the River Clyde. With four Doric pillars across the frontage between a pair of pilasters, the frontage is topped by the carved lion and unicorn of the coat of arms of the United Kingdom.

• The building housed officials who collected duties on imports and exports at the harbour and held registers of ships. Described as neat, Greek and Doric, it was subsequently acquired for the Procurator Fiscal's office.