GE Real Estate has acquired an office building in Aberdeen from Manchester-based CTL Estates for £10.3m.
The 54,000 sq ft building on Union Terrace produced a net initial yield of 7% and is let to tenants including Lloyds Register of Shipping, Acergy and Willis Group. The property generates an annual income of £760,000.
GE plans to refurbish and re-let the vacant space in the building and settle rent reviews and lease renewals.
Asset manager, Urbina, has been appointed with the task of improving the overall management and common parts of the building.
The transaction represents the investor’s first incentivised management deal with Urbina.
Mike Rowan, managing director of GE Real Estate UK, commented: “This acquisition is in line with GE’s strategy to increase its presence across all parts of the UK.
“This is our first acquisition in Aberdeen and our second purchase in Scotland this year.
“Aberdeen is an active market with strong demand and offers potential for rental growth. We are constantly focusing our efforts on acquiring buildings that require active asset management and this building offers a range of options.”
GE Real Estate was represented by Ryden and Springford. CTL Estates was advised by Paul Gee.
References: EGi News 14/11/06
