Agents pick most significant deals to end of October
Union Square shopping centre, Aberdeen
Type of deal Leasing
Landlord Hammerson
Tenant River Island
Size 8,446 sq ft plus mezzanine
Rent Undisclosed
Chosen by James Godfrey, partner, Culverwell
My choice of top deal is the recent letting to River Island in Union Square. The centre, which opened in 2009, immediately created a new retail pitch for the city and has since attracted a significant number of new brands from the UK and overseas.
On its opening, however, River Island chose to remain in an existing unit within the city. Five years on, Hammerson has completed a letting to the retailer at a strong market rent with nominal rent-free. I see this deal as cementing Union Square as the prime fashion pitch, primarily because River Island is one of the most successful companies on the high street and other retailers will therefore follow its lead. It is also recognised beyond the UK, which helps to attract international retailers.
The centre has been a remarkable success story and the significance of this letting cannot be underestimated in terms of stimulating future retail demand.
Prime Four Business Park, Kingswell, Aberdeen
Type of deal Prelet
Developer Drum Property Group
Tenant Statoil
Size 45,000 sq ft
Rent Undisclosed
Chosen by David MacLeod, director, FG Burnett
The prelet of a 45,000 sq ft headquarters building at Prime Four to Statoil, where there is potential to expand to 90,000 sq ft, is not the biggest deal in Aberdeen. However, I believe it to be one of the most significant.
Statoil is a major global player and its commitment is fantastic news for the city. The HQ will service the company’s development of the Mariner field, one of the largest new developments in the UK North Sea for a decade.
The key point here is that Mariner was first discovered in 1981 but was not viable then in terms of extracting the oil economically. Now it is expected to be producing in 2017. I consider this deal to be a reflection of a story about technology unlocking reserves that were not previously accessible. The future of the North Sea will be extended by such technology and more examples of collaboration between all the city’s stakeholders.
Aberdeen International Business Park, Dyce
Type of deal Office letting
Developer Abstract
Tenant Aker Solutions
Size 335,000 sq ft
Rent Annual rent of £7.7m over 20 years
Chosen by Derren McRae, managing director, CBRE Aberdeen
In August 2014, Norwegian oilfield services giant Aker Solutions signed one of Scotland’s largest ever office leasing deals.
The company agreed to take three linked office buildings comprising the 335,000 sq ft phase one of Aberdeen International Business Park. It will take occupation on completion next year in premises capable of accommodating up to 2,400 people.
Aberdeen has experienced unprecedented office take-up in recent years, while demand has been somewhat subdued in the majority of other regional cities. The magnitude of this transaction shows how a significant global energy hub like Aberdeen is viewed within the oil and gas sector, with major international organisations committing to long-term leases on quality, purpose-built office developments.
Aker Solutions’ move is a long-term investment, underlining its commitment to Aberdeen. The offices will not only provide the firm with grade-A facilities, but will enable the organisation to consolidate the majority of its Aberdeen operations in a single, accessible campus.
Savills arrives in Aberdeen
Savills opened its first office in Aberdeen to tap into the city’s booming residential and energy sectors. Head of office is Ewan Berkeley, who has been advising clients in the area for more than 30 years.
Edinburgh in build boom
Research by GVA James Barr uncovered a new generation of investors from overseas dominating an Edinburgh development market that was itself in healthy mood – with schemes such as St James, Haymarket and Quartermile all emerging.
Deals fly in Glasgow
Glasgow witnessed a flurry of buying and selling activity involving prominent buildings. Hermes put 151-155 Vincent Street up for sale at £27m-plus, while Deutsche Asset and Wealth Management bought Bam’s CONNECT110NS development at 110 Queen Street for £70m.
Aberdeen bags beds
Aberdeen is the focus of increasing student development. The city council approved plans for Alumno’s £17m, 200-bed accommodation scheme, due to complete in 2016. Unite also bagged itself another site in the city, to be ready for 2017/18.
LBTT ‘could deter investors’
Scottish Property Federation chairman John Hamilton has warned the Scottish Parliament that raising the land and buildings transaction tax could put off investors, as the rate in the country would be higher than the rest of the UK.
