A #2.6m office deal in Glasgow's Merchant City demonstrates that the area is undergoing a renaissance, according to the selling agents.

The investment company Sydney & London Properties has purchased Merchant Exchange on Bell Street. The seller is 20 Bell Street Ltd.

The 23,850sq ft building has 13 parking spaces and is let to Scottish Children's Reporters Administration, Sun Life Assurance Company of Canada, and Edge Creative Consultancy.

The annual rental income is some #250,000, equating to an average of #10.86 per sq ft. The selling price reflects a yield of 9.3%.

Keith Dobson of selling agents FPD Savills said: ''The sale demonstrates the continued confidence in well-secured Glasgow office investments.

''The quality of the accommodation, the tenants, and the potential for growth is reflected in the price achieved.

''The Merchant City is witnessing a further renaissance in its prospects for commercial, retail, and residential development.''