Accountancy giant’s interest in St Vincent Plaza is a ‘game changer’ for city’s business zone. By Bob Serafini

In a property deal that could force a re-think on what constitutes Glasgow city centre business district, one of the world’s big four professional services firms is understood to be planning a move to the new St Vincent Plaza office building alongside the M8 motorway.

KPMG, which currently employs more than 300 staff in the city, is believed to be in legal discussions with advisers of developer Abstract Securities about leasing the top three floors of the office tower – a total of nearly 40,000 sq ft – at the newly completed Grade A scheme.

Its preferred option of this striking landmark property, situated alongside the Hilton Hotel and highly visible when travelling from Glasgow airport, would offer the global player the high profile branding it favours in other cities around the world.

The 5,259 sq ft executive floor on the rooftop of the 11-storey building also features an outside terrace with views over the city, ideal for entertaining.

The audit, tax and advisory firm would become the first tenant to be announced for the 175,000 sq ft property, designed by Glasgow-based Keppie Design to BREEAM excellent rating, where rents start from £23 per sq ft.

KPMG is also likely to be joined by Glasgow institution Whyte & Mackay, which is under offer to rent the 16,966 sq ft third floor of the building, with both expected to take 15-year leases.

The accountancy firm is currently based at 191 West George Street, with the whisky firm diagonally across the road from its proposed new home.

Fighting for occupiers with two central core developments at 110 Queen Street and 1 West Regent Street – all three completed this year – St Vincent Plaza has been slow off the mark but now has interest in almost every floor.

But this major coup, which will surprise the market, also comes as work is well advanced on Scottish Power’s 220,000 sq ft headquarters directly across the road. Between this 14-storey prime property and SVP, the value of investment in this location is £150 million. Once considered on the margins of the core business district, there are other advantages beside access to the motorway network – Charing Cross railway station now offers train services every 15 minutes to Edinburgh and Anderston adding to commuter options.

One leading Glasgow agent, who preferred to remain anonymous, told The Herald: “I am amazed by trade media reports of KPMG’s move to SVP. I would have bet my house on them staying put. This is a bit of a game changer for Glasgow and starts to pull the traditional core further apart. First of all we had the movement east, with G1 in George Square, then 110 Queen Street, the technology and renewables zone at Strathclyde University and Inovo building in George Street. The latest developments move things the other way.

“A professional business going to that location is likely to pull other large occupiers up the hill and really focus people’s minds on other sites nearby. The former police station at Pitt Street has already been earmarked for redevelopment.

“Another interesting issue is whether another development cycle has been missed by the available waterfront sites within the IFSD, with people attracted to the sort of critical mass building around Scottish Power, Santander, KPMG and whoever else comes into SVP. We will see how the dynamics play out over the next few months.”

A spokesperson for Abstract declined to comment on any prospective tenant discussions until deals are signed.