ONE of Glasgow’s most iconic buildings has changed hands in a £14.1 million deal.

The Ca’d’oro Building – or ‘House of Gold’ – named after the gilded 15th century Palazzo Santa Sofia palace in Venice, has been sold off-market to a private overseas investor.

The deal was brokered by real estate consultancy Knight Frank on behalf of Hamilton Capital Partners, the investment firm set up in 2009 by former Motherwell FC chairman and Direct Holidays founder John Boyle and former PricewaterhouseCoopers corporate financier Andrew Lapping.

“The Ca’d’oro deal demonstrates the high level of demand from overseas investors, which is becoming increasingly relevant as Glasgow’s, and Scotland’s, investment environment evolves into a truly global market,” said Patrick Ford, Partner for Knight Frank in Glasgow. “Traditionally we’ve seen German and North American money coming into the city, but now we’re receiving more interest from the Middle East, Israel and other parts of Asia.”

Located on the intersection of Gordon Street and Union Street, the Ca’d’oro was originally built in 1872 as a furniture warehouse and shopping arcade, before being converted into a ballroom and restaurant in the 1920s. Designed by renowned local architect John Honeyman, the building with its decoratively sculpted facade and extensive glazing is inspired by Venetian Renaissance architecture and is Grade A listed.

When the Ca’d’oro was devastated by fire in 1987 during internal restoration, then owner The Co-operative Insurance Society spent £5m redeveloping it, removing the ballroom on the top floor and extending the facade on Union Street. Knight Frank has managed the building since its purchase from insurance provider AXA in 2013, overseeing more than £1.6m of refurbishment work.

The building provides 47,397 sq ft of high quality office and retail accommodation over basement, ground and four upper floors. Its current tenants include law firm Harper Macleod, the Co-operative Group and Atos IT Services.

The sale price reflects a net initial yield of 6.5% to the purchaser.

Hamilton Capital Partners director Stephen Kelly said Knight Frank had advised on the purchase and successful sale of this “large and complex asset” to achieved an outcome “ in excess of our expectations.”

Knight Frank said given the almost unprecedented demand for prime office space and relative value compared to other regional UK cities, many international investors will see Glasgow as a great opportunity to achieve strong returns and sustained performance.”