Housing minister Kevin Stewart has today announced an investment of £8.35 million from the Scottish Government’s SPRUCE fund to support the refurbishment of vacant office space in central Glasgow.

The move will deliver around 71,000 ft2 of new high quality Grade “A” office space for the city as well as create and support hundreds of new jobs.

With total investment expected be around £16.4m, Tarn Crag Limited (TCL), a subsidiary of commercial property investor Praxis, will refurbish Dalmore House, a landmark building on St Vincent Street. It is expected the refurbished office space will be able to accommodate more than 500 workers.

Construction works have now commenced with the offices due to be ready for lease by October this year.

Mr Stewart said: “Glasgow has a shortage of high quality office space and this latest investment will increase the city’s stock, making it an even more appealing proposition to locate and do business in.

“The fact that it will support 196 new jobs in construction plus training and apprenticeship places in the city is very welcome news. This is exactly why we have provided additional support for SPRUCE, allowing it to continue to invest in this sort of regeneration project, and helping our urban areas flourish and ultimately support the communities which sustain them. SPRUCE funding can now be accessed for projects right across Scotland and we hope to see further investments during 2017.”

Gary Roberts, managing director at Praxis, said: “We are extremely pleased to have reached agreement with SPRUCE and Chenavari who have also provided investment to deliver this refurbishment in partnership with us and are delighted that both have bought into our vision for the property. Their involvement further bolsters the first class team that we have assembled to deliver the project.”