Fusion Group, the developer behind the project, has purchased the site from the retailer to deliver new student homes and an improved shopping environment aimed at kickstarting Sauchiehall Street’s regeneration.

The deal comes after planning permission was granted by Glasgow City Council in July 2024.  The development is expected to play a pivotal role in addressing the city’s shortfall of student accommodation, while acting as a catalyst for the wider regeneration objectives of the council’s ‘Golden Z’ initiative.

As part of the scheme, 619 student beds will be delivered, alongside 9,500sq ft of new commercial space at street level via a new shopping arcade that will 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 Group were advised by TLT and Taylor Wessing, while Marks & Spencer received counsel from Dentons, and the lender was represented by Memery Crystal and Lindsays.

James Nunn from Octopus said: “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.”

Steve Clinning from Memery Crystal said: “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.”