The property at 122 Waterloo Street, which was sold by KFIM on behalf of overseas client, comprises a 157,000 sq ft Grade A office space let to Morgan Stanley until 2033. It is the banking firm’s second-largest Europe premises after London and a mission critical asset within the companies global portfolio.

Gary Cameron, head of Scotland at BNP Paribas Real Estate, said: “This milestone transaction is significant for Glasgow’s office sector and serves as a reflection of the broader trends shaping the market including its strong rental growth prospects, top sustainability credentials and strategic location, all of which are becoming almost mandatory for certain investor groups.

“Since the start of the year, the Glasgow office market has been experiencing an improved flow of activity. The city continues to be a key destination for both domestic and international occupiers, thanks to its skilled workforce, and competitive operating costs compared to other major UK and European cities. There has been a steady demand for core high-quality space, driven by finance, technology, and professional services.

“Looking ahead, the Glasgow office market is expected to continue its positive momentum. The city’s ability to attract major financial institutions, coupled with ongoing investments in infrastructure and regeneration projects, suggests a strong outlook for the sector.

“However, the market will need to continue adapting to broader economic challenges and the evolving needs of investors who continue to strive towards best in class income profiles and assets at a time where the pipeline of new stock is critically low.”

The latest sale marks a hatrick of successful deals completed by BNP Paribas Real Estate to French investors across Scotland in the last few months. It successfully advised on the acquisition of two office buildings on behalf of Remake Asset Management for net price of £36.6m, reflecting a blended NIY of 7%.

The properties, which were sold by London Metric, include Dundee’s 2 Greenmarket, spanning 85,000 sq ft and let to BT on a 17.5-year lease with CPI-linked rent reviews. The other is Glasgow’s 4 Pacific Quay, a 60,000 sq ft office leased to STV for a further 17 years, with five-yearly compounded fixed reviews of 1.5% a year.

Hugh White, head of national capital markets at BNP Paribas Real Estate, said: “The investor interest from French SCPI funds is an encouraging endorsement of the long-term attractive fundamentals of the UK office market.

“This investor base is leading the way in the institutional market and, in turn, we expect to see momentum from other core investors build over the next 12 months.”

Mr Cameron added: “These transactions can be seen as a vote of confidence in the UK regional office markets but in particular, underlines Scotland’s ability to continue to satisfy this new wave of European investor appetite.”

Knight Frank & Cushman acted on behalf of KFIM. Lismore acted on behalf of London Metric.