INVESTMENT OPPORTUNITY

PRIME WEST END OFFICES - LEASED TO RBS AND BANK OF SCOTLAND

An opportunity is offered to acquire two striking office investments.

The properties command a high profile location and represent the best examples of their type in the West End of Aberdeen.  The buildings feature attractive facades with modern rear extensions and provide high quality open plan accommodation.

Location

Aberdeen is Scotland’s third largest city with a population of around 215,000 and a regional catchment population of over 500,000.  The City is the administrative capital of the North East of Scotland.  It benefits from two universities, seven major research institutes and world renowned food, fisheries and agricultural research establishments.  Aberdeen has good transport communication links with the rest of Scotland, the UK and Europe.  The A90 trunk road links Aberdeen with the National Motorway Network allowing both Edinburgh and Glasgow to be accessed in around two hours. 

Aberdeen has a vibrant local economy and represents Europe’s Energy Capital.  Many of the world’s oil companies have substantial regional headquarters in the City including BP, Shell, Total, Chevron, Nexen, Taqa and Conoco Phillips.  There is also a substantial representation of large oil service companies such as Wood Group, Amec, Aker, Schlumberger and Halliburton to name but a few.  The City also has a vibrant financial and service sector together with a wide range of other industries.

Accommodation

The subjects provide a total of 3,024.96 m² (32,560 ft²) of accommodation on the following basis:

1 Albyn Place

The above areas have been calculated on a net internal area basis in accordance with IPMS 3 – Office and RICS Property Measurement First Edition.

Terms

TENURE:

The property is held on a heritable basis, being the Scottish equivalent of Freehold.

TENANCY:

The properties are let on the following basis:-

1 Albyn Place

Leased to The Royal Bank of Scotland Plc on full repairing and insuring terms until 31^st May 2019.  The passing rent under the lease is £452,750 payable until the lease expiry.

3 – 5 Albyn Place

Leased to the Bank of Scotland Plc on full repairing and insuring term until 31^st May 2019.  The passing rent is £597,344 payable until the lease expiry.

Full details of both leases are available upon request.

COVENANT:

RBS is a major bank group with a net worth of approximately £62.3 billion.  RBS have a D&B rating of 5A1.

Bank of Scotland is part of the Lloyds Banking Group Plc.  The Bank of Scotland have a net worth of approximately £20.4 billion and a D&B rating of 5A1.

ENERGY PERFORMANCE CERTIFICATE:

The subjects have a current Energy Performance Rating of the respective properties is as follows.

1 Albyn Place

Energy Performance Rating of “E“.

3 – 5 Albyn Place

Energy Performance Rating of “C“.

PROPOSAL:

We are instructed to seek offers in the region of £13.75 million exclusive of VAT for the subject properties.

Such a purchase price will show an investor a net initial yield of 7.2% after allowing for standard purchaser costs including LBTT.

VIEWING:

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

Publication date:  January 2016  

Email: c.grinyer@shepherd.co.uk

Contact: Chris Grinyer  

Specification

DESCRIPTION:

The subject properties enjoy a high profile location on Albyn Place, which represents one of Aberdeen’s most prestigious business addresses.

The subjects comprise two attractive office buildings with a link section which could enable single occupancy.

The two buildings are of similar design and construction.  Each has an original two storey and attic front section of granite construction with a slated roof.  To the rear there are modern steel framed extensions with No. 1 being of two storey height and No 3 – 5 of three storey height.

Each building enjoys its own main door entrance.  Further entrances are available into the building which offers flexibility for multiple occupancy.

Internally, high quality open plan office accommodation is provided throughout. Suspended ceilings have been introduced featuring recessed light boxes.  Raised access floors have been installed with lift access provided to the various floors.

Both buildings have been extensively fitted by the respective tenants.

CAR PARKING:

Some 85 car parking spaces are provided, giving an excellent parking ratio of 1:375 ft², located between the front car park accessed directly from Albyn Place with the residual spaces found to the rear of the building.