Grosvenor has sold a large scheme in Glasgow to quango Scottish Enterprise, saying it would not be “feasible” to speculatively develop it.

The Duke of Westminster’s property company has sold its 15 acre site to the investment and regeneration body. Grosvenor and its joint venture partners found it hard to find office prelets for the scheme on the south side of the River Clyde (pictured).

The sale of its site, which was earmarked for a mixed-use, leisure and residential element of the Pacific Quay scheme, marks Grosvenor’s exit from Pacific Quay Developments,the joint venture it set up in 1997 with Miller Developments and CTP. However, Scottish Enterprise will not become a partner in Pacific Quay Developments.

Robin Blacklock, senior development manager at Grosvenor, said: “It has clearly been a difficult period in recent times with a lot of stock coming through in Glasgow. Speculative development just is not feasible at the present time. However, we feel we have sold into a relatively strong market.”

It is understood Scottish Enterprise has paid around £3m for the site and is keen to attract digital media companies. BBC Scotland and Scottish Television are already among the occupiers in the area.

The site originally had plans for up to 300 new homes, a 120-bed hotel and leisure uses. A spokeswoman for Scottish Enterprise said it would consider development opportunities.

Pacific Quay Developments completed a 30,000 sq ft building — 1 Pacific Quay — which was leased to the Scottish Criminal Record Office in 2000 and is now owned by a private investor.

In early 2008, the consortium came close to speculatively developing Pacific Quay 2, a 64,000 sq ft office building, but decided it was too much of a risk.

Pacific Quay 3, a third building of around 35,000 sq ft, is also planned, but the partnership is reviewing its plans for these two phases and may consider leisure or hotel uses.

Andrew Sutherland, joint managing director of Miller Developments, said: “We would hope that, with a waterfront location, we would be able to develop a top office building. But we have had the land for so long, we would be prepared to consider anything.”

Jones Lang LaSalle and CB Richard Ellis acted for Pacific Quay Developments in the land sale and are the letting agents for the scheme.

Property Week understands that Stephen Gallagher, senior director of business infrastructure at Scottish Enterprise, is leaving the agency. Gallagher is widely considered to have played a key role in the agency’s relations with the property sector.

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