Asset and investment manager APAM has put Talisman House in Aberdeen up for sale, in what could result in the city’s biggest property deal since the beginning of the pandemic.
Knight Frank has been instructed to market the six-storey office block for £19.5m, reflecting a net initial yield of 11.77%.
The office block is let in its entirety to Repsol Sinopec Energy UK. Sinopec and Repsol acquired stakes in Talisman Energy – the original occupier of the building – in separate deals during 2012 and 2015, respectively.
A deal for the building could trump the sale of Neptune Energy’s headquarters in the city earlier this year, which was marketed for £15.25m.
The Holburn Street building was developed in 2000 and over the past three years Repsol Sinopec Energy UK has undertaken rolling refurbishment programmes, including the addition of integrated operating centres. The company is also involved in a partnership to develop a large-scale green hydrogen facility on Orkney from its Aberdeen base.
Douglas Binnie, associate at Knight Frank, said: “A higher and more sustained oil price has helped lift Aberdeen’s commercial property market, with increased deal activity and renewed activity from occupiers.
“All things being equal, we expect to see increased investor appetite for the city as we move into 2022, with the occupier market continuing to recover and, with that, investment activity picking up.”
Research from Knight Frank showed the city’s office take-up doubled between the second and third quarters of 2021. Royal Dutch Shell recently announced its plan to relocate to the Silver Fin building, near Talisman House, while BP has committed to space at Aberdeen International Business Park in Dyce.
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