Fusion Group has completed the acquisition of a landmark Glasgow building, from Marks & Spencer’s, in a deal worth £150m. The Sauchiehall Street site was its first in Scotland with an in-store café and retains the Art Deco frontage of the building that opened in 1935.
“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.”
Will Smith, Property Director, Marks & Spencer
Fusion Group’s purchase was funded by a loan provided by Octopus and the company was advised by TLT LLP and Taylor Wessing. Dentons advised Marks & Spencer and Memery Crystal and Lindsays represented the lender.
“We are pleased to have supported Fusion Group and Octopus in this significant transaction. This development represents an exciting opportunity to regenerate Sauchiehall Street in Glasgow and foster a vibrant community. We are proud to have played a role in facilitating such an impactful project.”
Steve Clinning, Memery Crystal
With planning permission granted by Glasgow City Council in July 2024, the former superstore will now be transformed into a PBSA scheme. It will also deliver an improved shopping environment aimed at kickstarting Sauchiehall Street’s regeneration.
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 will restore a historic pedestrian route through to Renfrew Street.
“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.“
Brodie Berman Senior Acquisitions Associate, Fusion Group
The new scheme aims to create positive change in the city and is set to breathe new life into Sauchiehall Street, which is a historic area that has faced challenges from the impact of the Covid-19 pandemic and the retail decline. The project aims to create a vibrant community hub.
The Sauchiehall Street development is expected to play a pivotal role in addressing the city’s shortfall of student accommodation, whilst also acting as a catalyst for the wider regeneration objectives of the Council’s ‘Golden Z’ initiative.
“This marks the third loan we have provided to Fusion, and we are delighted to have played a role in supporting this key urban renewable project.”
James Nunn, Octopus
Founded in 2013, Fusion Students acquires, develops, and operates student housing across major UK university cities. The company offers a unique ‘student hotel life’ by creating high end, design-led residences in healthy, social and vibrant environments.
By providing a platform for residents to enjoy the company of new friends and like-minded fellow students, Fusion hosts safe, flourishing and thriving communities.
