FOR SALE
EXCITING WEST END INVESTMENT OPPORTUNITY OCCUPYING PRESTIGIOUS LOCATION
• Situated Within the Prime West End Office Area
• Potential for Rental Increases at the Next Rent Reviews
• Strong Occupational Market
Location
ABERDEEN:
Aberdeen is Scotland’s third largest city with a population in
the region of 210,000 persons and a catchment population
of over 500,000. Aberdeen has strong communication links
with the rest of Scotland and the UK via the A90 which in
turn connects to the M90 to the south and the A96 north
to Inverness.
Aberdeen is the Energy Capital of Europe and indeed one
of the most significant centres for oil and gas activity in the
world. Reflecting the importance of the oil and gas industry,
Aberdeen is home to a number of large multi-national oil
related companies such as BP, Shell, Wood Group, GE and
Talisman Energy.
Although the international oil and gas sector is the city’s
main economic driver, Aberdeen does benefit from
a diverse employment base including construction,
education, farming, fish, food processing, transport and
professional services. The city’s economy is forecasted to
increase by an average of 1.9% per annum over the next 5
years. This is faster than the growth forecasted for Scotland
as a whole which is anticipated to increase by an average of
1.6% per annum.
LOCATION:
The subjects are located within the heart of the West End
office district close to Queen’s Cross which links the main
office areas of Carden Place, Albyn Place and Queen’s
Road. The subjects themselves are situated on the north
side of Carden Place close to its junction with Prince Arthur
Street. The property is also in close proximity to Union
Street, Aberdeen’s main commercial thoroughfare.
The West End is an extremely buoyant and sought
after location and home to a number of professional
organisations and oil companies. Occupiers include
Clydesdale Bank located at 56 Carden Place, Ernst & Young
and Brewin Dolphin at Blenheim House, Premier Oil located
at Blenheim Gate and Pinsent Masons at 13 Queen’s Road.
The exact location of the subject can be seen on the map
above.
Accommodation
The subjects provide the following accommodation:-
Lower Ground Floor 57.76 m² (622 ft²)
Ground Floor 112.00 m² (1,204 ft²)
First Floor 121.48 m² (1,308 ft²)
Attic 62.27 m² (670 ft²)
Total 353.51 m² (3,804 ft²)
The foregoing areas have been calculated on a net internal
floor area basis in accordance with the Code of Measuring
Practice (Sixth Edition) as prepared by the RICS.
Terms
TENANCY:
The ground and lower ground floor is currently let to
Christopher Pilc and Anna Jadwiga Nohawica for a period
from 18th November 1995 expiring 17th November 2020.
The current rent passing is £39,400 per annum with the next
upward only rent review being due 28th November 2015.
The first and attic floor levels are let to DNB NorBank ASA
from 1st July 2011 for a period of 10 years. The premises
are held on a Full Repairing and Insuring lease subject to
a Schedule of Condition at a rent passing of £45,494 per
annum.
There is an upward only rent review and a tenant
only break option on the 5th anniversary of the date of
entry, if this break is not exercised the tenant will receive a
further 3 months rent free.
Both leases allow for a service charge in respect of the
common areas.
COMPANY INFORMATION:
Christopher Pilc and Anna Jadwiga are two individual
dentists that currently hold the lease over ground and lower
ground floors.
DNB Group posted a net income for the full year of 2011 at
NOK 25 billion (£2.7 Billion) with a profit of NOK 13 billion
(£1.4 billion). Further information can be found at www.dnb.no
ABERDEEN OFFICE MARKET:
Office take up in the Aberdeen market has remained
extremely positive throughout recent years with 2011
recording approximately 735,000 ft2 of offices transacted in
the city. 2012 has been more positive than the previous year
with approximately 631,104 ft2 of office accommodation
transacted in Aberdeen for the first half of the year alone.
The high level of take up in recent years has led to little
or no grade A stock and West End offices being available
in the city with demand ever increasing. This has resulted
in higher rentals being achieved on longer leases with
minimum incentive requiring to be conceded for prime
office accommodation. This has resulted in prime rents in
the Aberdeen market increasing to £31.50 psqft.
The buoyant market has also seen increased activity in the
investment market as investors seek low risk opportunities
such as offices located in the West End of Aberdeen. This is
mainly due to the good covenants that are on offer with the
market experiencing low vacancy rates and positive take up
levels.
The abovenoted transactions of similar accommodation
highlights the reversionary rent contained in this
opportunity offering great opportunities to a purchaser at
rent review. Market rents have risen considerably over the
past 12 months and the shortage of quality accommodation
suggests that this will continue.
PRICE:
Offers are invited for our client’s heritable interest in this
opportunity given that it is a unique opportunity to purchase
a West End office building.
VAT:
VAT will be payable on the purchase price at the prevailing
rate.
VIEWING & FURTHER INFORMATION:
For further information or viewing arrangements please
contact the sole agents:-
J & E Shepherd, Chartered Surveyors
35 Queens Road, Aberdeen AB15 4ZN
Tel: 01224 202800 Fax: 01224 202802
Email: mark.mcqueen@shepherd.co.uk
Contact: Mark McQueen
Publication date: October 2012
Specification
DESCRIPTION:
The subjects comprise of a traditional semi-detached office
building, the main section is of two storey, attic and lower
ground floor construction whilst immediately to the west
elevation is a further section of building which is of two
storey and lower ground floor design. The building is of
granite construction which has a multi-pitched and slated
roof incorporating dormer windows to both the front and
rear elevations.
The ground and lower ground floor accommodation
is currently occupied as a dental surgery with access
to the surgery either directly by the car park to the rear
or via a timber and carpeted stair from the ground floor
accommodation.
The first and attic levels are accessed via a separate
entrance from the ground floor and have recently seen a
full refurbishment when the tenant took occupation in July
2011. The office areas are mainly cellular in nature but
also provide male and female w.c.’s, staff areas along with
meeting and board room facilities.
Externally, the subjects benefit from a substantial car park
providing 17 car parking spaces for the building. This
provides a parking ratio of 1 - 223 square feet and therefore
is attractive in the marketplace.