Legal & General has completed the purchase of the largest single office deal ever in Aberdeen with the acquisition of the first phase of the Aberdeen International Business Park in a transaction valuing the scheme for in excess of £127m equating to a 5.75% yield.
The first phase comprises 3 interlinked buildings totalling 335,000 sq ft net. The buildings are nearly complete and will be ready for occupation in February 2015. The tenant for all 3 buildings will be a member of the Aker Solutions ASA Group and they will be paying an annual rental of just under £7.74 million for a 20 year term with options to extend the leases for 3 further periods of 5 years. The headline rent equates to £23.75 per sq ft. This is believed to be the largest single office letting ever in Scotland.
The Aberdeen International Business Park is being developed by the Abstract Group of Companies on behalf of Norwegian Investment Company Aker ASA. Further phases of the development which will comprise a series of office buildings will take the total development up to around one million sq ft and will also include at least one hotel. The importance of the Dyce Airport location of the Aberdeen International Business Park is being highlighted by the start of works to the long awaited Aberdeen Western Periphery Route and the associated Link Road between the AWPR and the Airport.
Aker Solutions is amongst the largest employers in Aberdeen with operations spread across a number of sites in the City. When fully occupied, there will be around 2,400 employees in this new complex. With a tight supply of skilled employees in the Aberdeen market, there has been considerable focus within this first phase of development on providing a total environment for employees to include a good range of catering facilities as well as a gym and sports hall, 2 squash courts, a medical centre, a shop, and a nursery / crèche. Also recognising the growth of internet shopping, the building offers dried, chilled, and freezer rooms for delivery of groceries to the workplace. Commenting on the sale, Mark Glatman, Chief Executive of the Abstract Group said “this purchase by Legal & General is a huge endorsement of the Aberdeen Market and this development in particular. When completed this building will offer the best quality and most environmentally friendly accommodation in Aberdeen”.
Adam Kerr, Head of Annuity Transactions at Legal & General Property commented that “this is an exceptional development with an excellent single tenant and we are very pleased to have made this acquisition”.
Dowley Turner Real Estate acted for Legal & General. Abstract was unrepresented.
Contact : Abstract Group of Companies
Mark Glatman
T. +44 (0) 207 747 8272 Legal & General