Fusion Group Acquires Sauchiehall Street's M&S Site

A £150m deal to turn the site of the former Marks & Spencer store on Sauchiehall Street into a mixed-use development has been concluded. 

Fusion Group, the developer behind the project, has purchased the site from the chain to deliver new student homes and retail units. Planning permission was granted by Glasgow City Council in July and it is hope the regenerated site will act as a catalyst for the regeneration of Sauchiehall Street and Glasgow’s ‘Golden Z'. 

As part of the scheme, 619 student beds will be delivered, alongside 9,500 sq ft of new commercial space at street level via a new arcade that should restore a historic pedestrian route through to Renfrew Street. 

Brodie Berman senior acquisitions associate at Fusion Group, said: “We are delighted to announce the acquisition of the former Marks & Spencer store, bringing us a step closer to delivering our exciting proposals that will kickstart the regeneration of Sauchiehall Street. 

“This deal reflects the strong partnership we’ve built with Marks & Spencer, and we are grateful for their cooperation and positive engagement throughout the planning and acquisition process. 

“This landmark development will not only help to address the city’s shortfall in student accommodation but will also revitalise the local area, and we are excited to see the positive impact it will have on the city.” 

Will Smith, property director at Marks & Spencer, said: “We are pleased to have reached this milestone and concluded the sale of our former Sauchiehall Street store. 

“Delivering long-term activity on the site aligns with our estate renewal strategy, and we’ve worked hard to find the right partners to ensure its future success. 

“We’re confident that Fusion Group’s vision will contribute positively to the regeneration of Sauchiehall Street and Glasgow city centre.” 

The purchase was funded by a loan provided by Octopus. Fusion was advised by TLT and Taylor Wessing, while Marks & Spencer received counsel from Dentons, and the lender was represented by Memery Crystal and Lindsays.

Source: Scottish Contruction Now and insider.co.uk