union plaza · 2016. 3. 30. · union plaza is aberdeen’s premier office building. aberdeen is...

UNION PLAZA

ABERDEEN

PRIME MULTI-LET OFFICE INVESTMENT

LANDMARK MULTI-LET OFFICE INVESTMENT

OPPORTUNITY IN PRIME ABERDEEN CITY

CENTRE LOCATION

UNION PLAZA

ABERDEEN

ABERDEEN / UNION PLAZA / 01

ABERDEEN’S PREMIER OFFICE

BUILDING


Union Plaza is Aberdeen’s premier office building.

Aberdeen is one of the most prosperous cities in the UK

and is recognised internationally as a global centre of

excellence for the energy sector.

The property is situated in a prime location in the heart of

Aberdeen city centre.

Union Plaza is acknowledged as a landmark office

building, completed in 2008, and provides Grade A office

accommodation over ground and 6 upper floors.

The accommodation extends to 11,335 sq m (122,012 sq ft)

and benefits from 224 clear basement car parking spaces

(providing an excellent ratio of 1:545 sq ft).

Heritable interest (Scottish equivalent of English freehold).

The current contracted rent is £3,149,519.50 per annum

with 4 outstanding rent reviews from July 2013 and a

further rent review in November 2013.

Recent rent review settlements (July 2013) in the building

reflecting £31.50 per sq ft.

Assumed contracted rent of at least £3,695,698 per

annum after settlement of the 2013 rent reviews.

High quality tenant line-up including Aberdeen Asset

Management, Burness Paull, Deloitte, Barclays Bank and

Exxon Mobil.

Aberdeen has the highest rental growth forecast of any

major regional city in the UK over the next 5 years.

Average weighted unexpired lease term to expiries of 9.2

years and to breaks of 7.7 years.

Offers are invited in excess of £53,000,000 exclusive

of VAT for our clients heritable interest reflecting a net

initial yield of 6.59% assuming settlement of the 2013 rent

reviews and after allowing for purchasers costs of 5.8%.

OVERVIEW


ABERDEEN HAS THE HIGHEST

RENTAL GROWTH FORECAST OF ANY MAJOR REGIONAL

CITY IN THE UK OVER THE NEXT 5 YEARS

The city is the main administrative

and financial centre for Aberdeen

city and shire, as well as being widely

recognised as the energy capital of

Europe and home to the UK’s oil

and gas industry.

Ranked in the Centre for Cities

‘top 5 UK cities with high potential

growth’, Aberdeen is one of the

UK’s most prosperous cities.

The Aberdeen economy is a

cornerstone of the UK and Scottish

economies. The city is an internationally

recognised business centre with

globally competitive industries,

excellent academic and research

capabilities and a highly skilled work

force. Strong economic growth,

property investment, development

opportunities and exciting key projects

are attracting highly skilled people, new

businesses and sustained investments.

The city has one of the highest

business birth rates in the UK

second only to London.

Aberdeen has a diverse economy

and is home to a number of major

international businesses including

First Group and Aberdeen Asset

Management. The financial and

businesses service sector accounts

for almost 26% of jobs in Aberdeen

and includes companies such as RBS,

Barclays, KPMG, PWC, Lloyds Banking

Group, Simmons and Company,

Brodies, Pinsent Masons and

Ernst & Young.

With an unemployment rate of only

2.3%, this is one of the lowest rates in

Scotland and well below the national

UK average. Aberdeen’s employment

rate is currently 77.9% making it the

second highest UK city for employment.

Home to University of Aberdeen,

Robert Gordon University and a

variety of world renowned research

establishments, the city has a strong

academic reputation and a student

population of approximately 30,000.

06

ECONOMY

Aberdeen is Scotland’s third largest city, with a population of approximately 225,000 and a regional catchment of around 500,000 people. By 2035 the population of Aberdeen city is projected to be over 271,000, an increase of 20%.

THE ABERDEEN ECONOMY IS A CORNERSTONE

OF THE UK AND SCOTTISH

ECONOMY

Energy is a key driver of the local

economy with up to 40,000 related

jobs and over 900 energy companies

based in the city and surrounding

areas. The renewables industry now

also plays a vital role in developing

transferrable skills and experience

within the industry sector.

In 2012, the energy sector, comprising

oil, gas and renewables delivered

£11.3billion in tax revenue to the UK

economy and over £300billion over

the last 40 years.

Aberdeen’s high level of skills and

expertise in oil and gas extraction

and technology has led to leading oil

and gas companies operating from

regional head-quarters in the city. Such

organisations include BP, Shell, Total,

Chevron, ConocoPhillips, Marathon,

Talisman Sinopec, Nexen, Centrica,

TAQA and BG Group.

They are supported by a network of

international service companies such

as Halliburton, Schlumberger, Baker

Hughes, Aker Solutions, Transocean,

Petrofac, Wood Group PSN, Technip,

AMEC and SubSea 7, all of whom have

major HQ’s in the city.

It is estimated that the UK continental

shelf accounts for 50% of the energy

activity managed from Aberdeen. The

further 50% relates to global exports

such as services provided to West

Africa and Brazil.

THE ENERGY SECTOR

With a track record of 4 decades of oil and gas exploration, Aberdeen is recognised as an energy city across the world. With much of the North Sea still to be developed, the city is set to remain at the heart of the energy industry.

08

LEADING OIL AND GAS COMPANIES

MANAGING INTERNATIONAL

OPERATIONS FROM HEADQUARTERS IN

THE CITY

A variety of established operators and new entrants

to the market have recently confirmed their long term

confidence in the UK continental shelf highlighted by

the following:

BP, Shell, Chevron and ConocoPhillips have

announced investment of £10billion in UK oil and gas

projects including the £4.5billion Clair Ridge Project

to the west of Shetland, where production is being

extended until 2050.

Total are investing £2.5billion in the Laggan and

Tormore fields to the west of Shetland.

Statoil are investing £4.5billion in their Mariner field.

Korean National Oil Corporation purchased Dana

Petroleum for £1.8billion.

Sinopec acquired 49% of Talisman Energy (UK) Ltd

for £977million.

The China Offshore Oil Corporation acquired Nexen

for £9billion, the second largest oil producer in the

North Sea.

Approximately 42 billion barrels of oil equivalents

have been recovered from the UK continental shelf.

Forecasts expect a further 15-24 billion barrels of

oil equivalents to be recovered with a value of £1.5

trillion (Simmons & Company).

Around 30 new oil fields have come on stream in

2012 / 2013 (Simmons & Company).

The oil and gas forecast for the total market value

of decommissioning is estimated to be £28.7billion

from 2012 onwards. If all projected developments

in the North Sea become operational, this sum

could rise to £35.9billion and there would be

decommissioning activity in the UK continental shelf

as late as 2060.



ENERGY IS A KEY DRIVER OF THE LOCAL ECONOMY WITH UP TO

40,000 RELATED JOBS AND OVER 900 ENERGY COMPANIES

BASED IN THE CITY AND SURROUNDING AREAS

TRANSPORT AND COMMUNICATIONS

12

ROADS

The A90 to the south of the city

provides main road communications to

Dundee and Perth and subsequently

links to the A9/M9/A80 to Glasgow and

M90/M8 to Edinburgh. The A96 trunk

road north of the city links Aberdeen

with Inverness and Elgin.

The Aberdeen Western Peripheral

Route (AWPR) is the proposed new

city bypass which has been promoted

by and will be funded by the Scottish

Government and the City of Aberdeen

and Aberdeenshire Councils. This

ring road will pass round the west of

the city, avoiding the city centre and

therefore reducing travel times across

Aberdeen by connecting the A96 with

the A90. Due for completion in 2018,

the AWPR is expected to generate

£6billion to the local economy.

RAIL

Aberdeen Railway Station is located in

the city centre and is a primary station

on the East Coast Railway line. Inter-

city, regional, local and sleeper train

services are provided to all parts of the

UK by ScotRail, East Coast and Cross

Country train operators.

AIR

Aberdeen International Airport is

located 8 miles north of the city

centre and is Scotland’s third largest

airport, catering for more than

3.3million passengers in 2012. The

airport provides connections to

over 40 national and international

destinations including London,

Frankfurt, Amsterdam, Paris and Oslo.

There are approximately 30 flights per

day between Aberdeen and London

providing Aberdeen with excellent

onward connections to the rest

of the world.

A £10millon runway extension at

Aberdeen International Airport was

completed in 2011. This extension

significantly expands the reach of

Aberdeen International Airport,

allowing airlines to operate bigger and

faster aircraft. As well as the runway

extension, the airport is embarking

on an ambitious capital investment

program worth around £100million over

the next 20 years. Passenger numbers

are forecast to grow to 4 million by

2020 and over 5 million by 2040.

The airport is also home to the

world’s busiest commercial heliport

with over 500,000 people using the

facility in support of the North Sea oil

and gas industry.

SEA

Aberdeen Harbour plays a vital role

in North East Scotland’s transport

infrastructure and is a key regional

resource. With trading links to more

than 47 countries worldwide, it is one

of the UK’s busiest ports, as well as

the centre of activity for the energy

industry’s marine operations in North

West Europe.

Activity at the port generates more

than £500million for the region’s

economy and directly or indirectly

supports around 11,000 full-time jobs.

In 2012, the port handled 5 million tons

of cargo with an estimated value of

more than £1.5billion.


TenerifeFuerteventura

Porto

Malaga

Enfidha

Menorca

Palma De MallorcaIbiza

BarcelonaReus

Palermo

Naples

VeronaGenoa

Dubrovnik

ParisFrankfurt

Jersey

Bourgas

AntalyaDalaman

Riga

Copenhagen

Oslo

Kristiansund

Stavanger

Bergen

Amsterdam

Donegal

Dublin

Esbjerg

Aberdeen

Shetland

Kirkwall

WickStornoway

Leeds/Bradford

Norwich

London Stansted

London City

London Gatwick

London Luton

Manchester

East MidlandsBirmingham

Cardiff

Bristol

Exeter Southampton

Jersey

Belfast

Dublin

London Heathrow

Aberdeen

Durham

Newcastle

Humberside

EdinburghGlasgow

WITH DIRECT FLIGHTS TO LONDON (1HR 25MIN),

FRANKFURT (2HRS 5MIN) AND PARIS (2HRS), ABERDEEN IS EASILY ACCESSIBLE FROM

NORTHERN EUROPE

International Destinations from Aberdeen National Destinations from Aberdeen

SITUATION

Union Plaza is situated on Union Wynd in a prime location in the heart of Aberdeen city centre and close to Union Street, Aberdeen’s principal retailing thoroughfare.


Union Plaza itself has an impressive

tenant line-up including companies

such as Aberdeen Asset Management,

Deloitte and Barclays Bank. Other major

occupiers in the vicinity include Wood

Group PSN, Centrica, Lloyds Banking

Group, RBS and Dana Petroleum.

The property benefits from excellent

access to Aberdeen’s major transport

hubs with Aberdeen Railway and Bus

Stations within short walking distance.

An extensive range of bus services also

run on nearby Union Street providing

access to all parts of the city.

Being situated in the heart of the city

centre, Union Plaza benefits from easy

access to a vast array of retail and

leisure facilities including Trinity, Union

Square and Bon-Accord & St Nicholas

shopping centres and Union Street,

Aberdeen’s prime retail location.

Leisure facilities in the vicinity include

the Nuffield Fitness and Wellbeing

Centre and a wide range of bars and

restaurants. Hotels include Holiday

Inn Express, Park Inn, Jury’s Inn and

Copthorne.

There is excellent public car parking

provision nearby in the Chapel Street

multi-storey car park with capacity for

over 500 cars.

p

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ANDERSON

DRIVE

RIVERSIDE DRIVE

RIVERSIDE DRIVE

UNION STREET

Albyn Place

Union Grove

River Dee

WellingtonBridge

To Tullos& AltensIndustrialEstates

Bus Station

Railway Station

Willowbank Road

Stonehaven RdA90 South

To Tullos& AltensIndustrialEstates

Great S

outhe

rn Rd

HOLB

URN

STRE

ET

HO

LBU

RN S

TREE

T

HO

LBU

RN S

TREE

T

Great W

ester

n Rd

Broo

mhil

l Rd

Great Southern Rd

Abbotswell R

oad

Wellington Road

Palm

erst

on R

oad

Union Grove

QUEENS ROAD

Carden Place

Rose St

Crown Street

College Street

Bridge St

Union Terrace

Guild Street

REGENT QUAY

Market Street

King Street

South College Street

Harbour

Rive

r Dee

Rive

r Dee

Direction ofAberdeen

Dyce Airport& North

Rosemount Place

Rosemount Viaduct

School Hill

North

Esp

lanad

e West

Polmuiur Rd

Union Row

Union Wynd

Bon Accord St

THE PROPERTY IS SITUATED IN A PRIME

LOCATION IN THE HEART OF

ABERDEEN CITY CENTRE

Bon Accord & St. Nicholas

Union Square

Trinity Centre

2

1

3

4

5 6

7

12

13

14

1011

9

18

1920

21

22

1 Hilton Hotel

2 Denburn Car Park

3 His Majesty’s Theatre

4 Loch Street Car Park

5 Harriet Street Car Park

6 Bon Accord Centre

7 Aberdeen City Council

8 Academy Shopping Centre

9 St Nicholas Centre

10 Lloyds Register of Shipping

11 Caledonian Thistle Hotel

12 Dana Petroleum

13 Transocean

14 Xodus

15 Chapel Street Car Park

16 Ship Row Car Park

17 Maersk

18 Ibis Hotel

19 Travelodge

20 Trinity Shopping Centre

21 Trinity Centre Car Park

22 JP Kenny

23 CNR

24 Jury’s Inn

8

1716

15

16

LOCAL OCCUPIERS

25 Union Square Shopping Centre

26 College Street Car Park

27 Aker Solutions

28 Park Inn

29 Wood Group PSN, Centrica

30 Travelodge

31 GDF Suez

32 BP

33 Senergy

34 Petrofac / EnQuest

35 Statoil

36 RBS

37 LBG

OFFICES

RETAIL

HOTEL

CAR PARK

23

24 25

26

28

29

30

27

37

36

33

35

32

34

31


KEY

18

THE BUILDING BENEFITS FROM

A STRIKING, DOUBLE HEIGHT

RECEPTION AREA

THE BUILDING

Union Plaza was completed in 2008 and set a new benchmark for Grade A office accommodation in the city centre.

The accommodation is planned over

ground and 6 upper floors with 224 car

parking spaces situated within a 2-level

secure underground car park.

The development is centred around an

attractive landscaped open courtyard.

The office accommodation provides

large flexible floor plates which are

easily sub-divisible with a central core.

In addition, the building benefits from a

striking, double height reception area.

It is the quality of the accommodation

and the flexibility of the space that has

attracted the likes of Burness Paull,

Aberdeen Asset Management, Deloitte

and Barclays Bank.

Flexible open plan office

accommodation.

Striking external appearance with

glazed curtain walling and smooth

white render.

Attractive open courtyard leading

to an impressive double height

reception and entrance foyer.

150mm full access raised floor

and finished floor to ceiling

height of 2.8m.

4-pipe fan coil air conditioning.

Metal suspended ceilings with

recessed lighting to LG7 standard.

High quality male and female toilet

and shower facilities on each floor.

3x13 person high speed passenger

lifts plus 1 separate service lift and

2 fire lifts.

EPC rating of D.

BREEAM “Good”.

SPECIFICATION


A STRIKING MULTI-LET

OFFICE BUILDING OF

OUTSTANDING QUALITY

ACCOMMODATION

The property provides the following net internal areas measured in

accordance with the RICS code of Measuring Practice (sixth) Edition:

22

TYPICAL UPPER FLOOR

THE OFFICE ACCOMMODATION PROVIDES LARGE FLEXIBLE FLOOR PLATES WHICH

ARE EASILY SUB-DIVISIBLE WITH

A CENTRAL CORE

FLOOR DESCRIPTION NET INTERNAL FLOOR AREAS

SQ FT SQ M

Level 6 Offices 17,776 1,651.43

Level 5 Offices 17,985 1,670.85

Level 4 Offices 17,914 1,664.25

Level 3 Offices 17,973 1,669.73

Level 2 Offices 17,925 1,665.27

Level 1 Offices 16,790 1,559.83

Ground Floor Offices 15,649 1,453.83

-1 Car Parking

-2 Car Parking

TOTAL: 122,012 11,335.19


RAMP DOWN

ENTRANCEFOYER

RAMP UP

RA

MP

DO

WN

RAMP DOWN

RAMP UP

CAR PARK 121 SPACES

CAR PARK LEVEL -2

CAR PARK LEVEL -1

GROUND FLOOR

FIRST FLOOR

RAMP DOWN

RAMP DOWN

RAMP UP

RAMP UP

CAR PARK 103 SPACES

FLOOR TENANTFLOOR AREA AS SPECIFIED IN LEASE (IN SQ FT)

CAR PARKING SPACES

DATE OF ENTRY AND EXPIRY

BREAK OPTION CURRENT RENTALRENT (PER SQ FT)

RENT REVIEW COMMENTS

6th Floor Burness Paull LLP 17,776 33 15 July 2008 14 July 2023

None £559,944 £31.50 15 July 2018

5th Floor South Burness Paull LLP 9,208 16 15 July 2008 14 July 2023

None £290,052 £31.50 15 July 2018

5th Floor North Aberdeen Asset Management plc

8,777 16 14 July 2008 13 July 2023

14 July 2018 (12 month penalty)

£206,260 £23.50 14 July 2013 14 July 2018

Rent review provisionally agreed at £276,476 pa (£31.50 per sq ft). Sub-let to GDF Suez E & P UK Ltd.

4th Floor Aberdeen Asset Management plc

17,914 33 14 July 2008 13 July 2023


£420,979 £23.50 14July 2013 14 July 2018

Rent review provisionally agreed at £564,291 pa (£31.50 per sq ft).

3rd Floor AGR Group (Holdings) Limited (Guarantor AGR Group ASA)

17,973 32 15 July 2008 14 July 2023

None £422,365 £23.50 15 July 2013 15 July 2018

Assumed rent review settlement in July 2013 at no less than £566,150 pa (£31.50 per sq ft).

2nd Floor Apply Sorco AS (Guarantor Apply ASA)

17,925 34 26 Nov 2008 25 Nov 2023

None £421,238 £23.50 26 Nov 2013 26 Nov 2018

Assumed rent review settlement in Nov 2013 at no less than £564,637 pa (£31.50 per sq ft). Part sub-let to Hess Services UK Limited.

1st Floor North and part of Ground floor North

Deloitte LLP 12,431 24 5 July 2010 4 July 2025

None £287,593.50 £23.14 5 July 2015 5 July 2020

1st Floor South

E.ON E&P UK Limited 8,109 15 15 Feb 2011 14 Feb 2016

15 Feb 2014 (not exercised)

£218,943 £27.00 None

Ground Floor South Barclays Bank plc 6,995 13 15 July 2008 14 July 2023

15 July 2018 £174,875 £25.00 15 July 2013 15 July 2018

Assumed rent review settlement in July 2013 at no less than £220,342 pa (£31.50 per sq ft). Negotiations currently at £32 per sq ft.

Ground Floor North Esso Exploration & Production UK Limited

4,904 8 26 Jan 2012 25 Jan 2022

26 Jan 2015 (6 month penalty) 26 Jan 2017

£147,270 £30.00 26 Jan 2017

TOTAL 122,012 224 £3,149,519.50

TENANCY SCHEDULE

The property provides a total current contracted income of £3,149,519.50

per annum which will increase to £3,695,698 per annum after completion

of the 2013 rent reviews.

The rent reviews of the 5th floor South and 6th floor, effective from

15 July 2013, have been agreed and documented at rents reflecting

£31.50 per sq ft. The rent reviews of the 5th floor North and 4th floor,

effective from 14 July 2013, have also been provisionally agreed at

£31.50 per sq ft.

26

HIGH QUALITY TENANT

LINE-UP INCLUDING ABERDEEN ASSET

MANAGEMENT, BURNESS PAULL,

DELOITTE, BARCLAYS BANK AND

EXXON MOBIL

FLOOR TENANTFLOOR AREA AS SPECIFIED IN LEASE (IN SQ FT)

CAR PARKING SPACES

DATE OF ENTRY AND EXPIRY

BREAK OPTION CURRENT RENTALRENT (PER SQ FT)

RENT REVIEW COMMENTS

6th Floor Burness Paull LLP 17,776 33 15 July 2008 14 July 2023

None £559,944 £31.50 15 July 2018

5th Floor South Burness Paull LLP 9,208 16 15 July 2008 14 July 2023

None £290,052 £31.50 15 July 2018

5th Floor North Aberdeen Asset Management plc

8,777 16 14 July 2008 13 July 2023


£206,260 £23.50 14 July 2013 14 July 2018

Rent review provisionally agreed at £276,476 pa (£31.50 per sq ft). Sub-let to GDF Suez E & P UK Ltd.

4th Floor Aberdeen Asset Management plc

17,914 33 14 July 2008 13 July 2023


£420,979 £23.50 14July 2013 14 July 2018

Rent review provisionally agreed at £564,291 pa (£31.50 per sq ft).

3rd Floor AGR Group (Holdings) Limited (Guarantor AGR Group ASA)

17,973 32 15 July 2008 14 July 2023

None £422,365 £23.50 15 July 2013 15 July 2018

Assumed rent review settlement in July 2013 at no less than £566,150 pa (£31.50 per sq ft).

2nd Floor Apply Sorco AS (Guarantor Apply ASA)

17,925 34 26 Nov 2008 25 Nov 2023

None £421,238 £23.50 26 Nov 2013 26 Nov 2018

Assumed rent review settlement in Nov 2013 at no less than £564,637 pa (£31.50 per sq ft). Part sub-let to Hess Services UK Limited.

1st Floor North and part of Ground floor North

Deloitte LLP 12,431 24 5 July 2010 4 July 2025

None £287,593.50 £23.14 5 July 2015 5 July 2020

1st Floor South

E.ON E&P UK Limited 8,109 15 15 Feb 2011 14 Feb 2016

15 Feb 2014 (not exercised)

£218,943 £27.00 None

Ground Floor South Barclays Bank plc 6,995 13 15 July 2008 14 July 2023

15 July 2018 £174,875 £25.00 15 July 2013 15 July 2018

Assumed rent review settlement in July 2013 at no less than £220,342 pa (£31.50 per sq ft). Negotiations currently at £32 per sq ft.

Ground Floor North Esso Exploration & Production UK Limited

4,904 8 26 Jan 2012 25 Jan 2022

26 Jan 2015 (6 month penalty) 26 Jan 2017

£147,270 £30.00 26 Jan 2017

TOTAL 122,012 224 £3,149,519.50


COVENANT INFORMATION

28

Burness Paull LLP

(Company number S0300380)

Burness Paull LLP is a leading Scottish

commercial firm of solicitors with

offices in Aberdeen, Edinburgh and

Glasgow. It is notable for its strengths

in corporate law and the energy sector.

The firm was formed in December 2012

through the merger of Burness and

Paull & Williamsons.

The firm is in the top 5 in Scotland with

58 partners and over 150 lawyers. In the

year to July 2012 turnover increased to

£24.33million with a pre-tax profit of

over £11million. They have an Experian

rating of 87 out of 100 (low risk).

Aberdeen Asset Management Plc

(Company number SC082015)

Aberdeen Asset Management Plc is a

global investment management group,

managing assets for both institutional

and retail clients from offices around

the world. The company has its head

office in Aberdeen and is a constituent

of the FTSE 100 Index.

The company operates mainly in the

UK but has a growing international

presence with over 2000 staff, across

31 offices in 23 countries.

As of August 2013, the company

had funds under management of

£201.7billion. In the financial year to

September 2012 they had a turnover

of £869.2million with a pre-tax profit

of £269.7million. The company has

an Experian rating of 96 out 100 (very

low risk).

E.ON Exploration &

Production UK Ltd

(Company number 02761032)

E.ON Exploration & Production is a

global unit and a growing segment

in the E.ON Group. This division is

responsible for E.ON’s worldwide oil and

gas exploration and production activities

and makes an important contribution

in developing new resources to secure

long-term energy supply.

E.ON Exploration & Production has

become an increasingly important

player in the international energy

industry since its launch in 2003 with

interests in the North Sea, North Africa

and Russia. For the financial year to

31 December 2012 the company had

a total turnover of £94.398million

with a loss of £76.628million and a net

worth of £330.64million. They have an

Experian rating of 60 out of 100 (below

average risk).

Barclays Bank Plc


Barclays is a major global financial

services provider engaged in personal

banking, credit card, corporate and

investment banking and wealth and

investment management with an

extensive international presence in

Europe, the Americas, Africa and Asia.

For the financial year to 31 December

2012, Barclays Bank Plc had a turnover

of £34.337billion and a pre-tax profit

of £99million and a tangible net worth

of £52.12billion. They have an Experian


Deloitte LLP

(Company number OC303675)

Deloitte LLP is the UK member

firm of Deloitte Touche Tohmatsu

Limited (DTTL). DTTL is the largest

professional services network in the

world by revenue and by number of

professionals. Deloitte provides audit,

tax, consulting and financial advisory

services with more than 200,000

professionals in over 150 countries.

For the financial year to May 2013,

Deloitte LLP had a turnover of

£2.329billion and pre-tax profits of

£439million. They have an Experian


Apply Sorco AS

Established in 1979, Apply Sorco has

its background as a multi-disciplinary

engineering and contracting company

and focuses its activities on upgrading

the performance of oil and gas facilities

offshore and onshore.

For the financial year ended December

2012, the company reported an

operating revenue of NOK 956.77million

(£117.37million based on exchange rate

of £1:NOK 8.152) and a pre-tax profit

of NOK 54.74million (£6.71m). Dun &

Bradstreet gave the company a credit

rating of ‘AA-Good Creditworthiness’.

There is a parent company guarantee

from Apply ASA.


Esso Exploration and

Production UK Ltd


Esso Exploration and Production

UK Ltd form part of EXXON Mobil

Corporation, the world’s leading,

publicly-owned energy company.

For the financial year to 31 December

2012, the company had a turnover of

£1.329billion and pre-tax profits of

£245million with a tangible net worth

of £499million. They have an Experian

rating of 100 out of 100 (very low risk).

AGR Group (Holdings) Limited

(Company number SC216504)

AGR delivers a broad service offering

within reservoir evaluations, well-

planning and management as well as

integrated field management to the

upstream oil and gas industries. Its

core competencies include geology,

geo-physics, petrol physics, reservoir

and petroleum engineering, well

construction billing management,

completion design and installation.

The business also delivers a broad

training portfolio.

There is a parent company guarantee

from AGR Group ASA, a company

having its registered office in Norway.

ABERDEEN OCCUPATIONAL MARKET

Aberdeen continues to experience one

of the strongest occupational markets in

the UK. Despite the economic downturn,

the office market in Aberdeen has seen

significant growth in recent years as

a consequence of increased global

demand for oil and gas.

The Aberdeen office market is the

largest commercial centre in the north

east of Scotland with a total office stock

of approximately 8 million sq ft, spread

across the city centre and out of town.

In 2012 Aberdeen witnessed its record

office take up of approximately 830,000

sq ft with a number of energy sector

majors making long term commitments

to significant new headquarter buildings

including Nexen (100,000 sq ft), Apache

(100,000 sq ft), Transocean (99,750 sq ft)

and GDF Suez (40,375 sq ft). This trend

has continued into 2013 with further

new headquarters acquisitions in the

oil and gas sector including Premier Oil

(63,180 sq ft), Technip (61,424 sq ft) and

EnQuest (120,000 sq ft).

Despite this increased activity there

are still significant levels of demand for

office space in Aberdeen with an acute

shortage of Grade A accommodation.

In the city centre there is currently no

Grade A accommodation in excess of

10,000 sq ft available.

There is also demand for good quality

Grade B office space in Aberdeen with

acquisitions often occurring on an off

market basis such as Dana Petroleum’s

acquisition of King’s Close (32,300

sq ft), Helix’s acquisition of Alba Gate

(27,900 sq ft) and Apache’s Grampian

House (45,500 sq ft) also believed to be

under offer prior to marketing.

This increased level of demand for

offices and reduction in supply has

resulted in an increase in rental levels,

however the complete lack of Grade

A accommodation in the city centre in

recent years has meant that no space

has been available to truly benchmark

rental levels.

In 2011 Centrica acquired 59,555 sq ft

of iQ at a record rent of £31.00 per

sq ft, following which Pinsent Masons

acquired 16,110 sq ft Queen’s House

in the west end for £31.50 per sq ft. In

the event Grade A space was currently

available in a building such as Union

Plaza then we would expect a new

record rent to be set. Rental growth has

been experienced out of town with rents

of £27.75 per sq ft being achieved in the

2013 letting to Premier Oil in Phase 2 of

Prime Four, Kingswells.

Incentive levels in Aberdeen remain

minimal with the majority of recent

lettings taking place with occupiers

acquiring buildings with no incentives.

A testament of the confidence in

Aberdeen is that two speculative

city centre office developments are

expected to commence on site Q4 2013;

Dandara’s 72,600 sq ft “The Point” and

Knight Property Group’s 70,000 sq ft

“The Capitol” which are expected to

complete in 2015. Muse and Aviva

are also committed to the Marischal

Square development including

175,000 sq ft of offices.

30

ADDRESS TENANT TRANSACTION DATE SIZE (SQ FT)

RENT (PER SQ FT)

LEASE

Marathon House / West End Conoco Phillips Lease Extension May-13 22,163 £28.00 4 year sub-lease

56 Carden Place / West End EPC Offshore Letting Mar-13 6,891 £30.87 8 year sub-lease

Prime Four / Kingswells Premier Oil Pre-Let Jan-13 63,180 £27.75 15 year lease

Simmons House / West EndSimmons & Company

Rent Review Jan-13 14,612 £31.55 10 year lease

GDF Suez House / Harbour GDF Suez Pre-Let May-12 40,375 £29.50 15 year lease

Prime Four / Kingswells Nexen Pre-Let Mar-12 100,000 £23.25 15 year lease

Prime Four / Kingswells Apache Pre-Let Mar-12 100,000 £23.00 15 year lease

Prime Four / Kingswells Transocean Pre-Let Mar-12 99,749 £21.75/£19.50 20 year lease

Union Plaza / City Centre Exxon Mobil Letting Jan-12 4,910 £30.0010 year lease, breaks at years 3 and 5

13 Queens Road / West End Pinsent Masons Letting Nov-11 16,110 £31.50 15.5 year lease

Gordon House / West End Sterling Resources Letting Oct-11 12,634 £30.0015 year lease, break at 10

iQ / City Centre Centrica Letting Mar-11 59,555 £31.00 15 year lease

iQ / City Centre Wood Group Letting Jan-11 65,680 £25.00 15 year lease

ABERDEEN HAS THE HIGHEST RENTAL

GROWTH FORECAST OF ANY MAJOR REGIONAL CITY IN THE UK OVER

THE NEXT 5 YEARS


ABERDEEN OFFICE AVAILABILITY 2000 – Q2 2013

ABERDEEN OFFICE TAKE-UP 2000 – Q2 2013

ABERDEEN OFFICE TAKE-UP BY SECTOR

2008 - 2012 H1 2013

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

SQ

FT

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Q2 2

013

3%

13%

6%

6%

1%

61%

8% 2% 4%

20%

1%

1%

61%

13%

SQ

FT

Q2 2

013

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Total

Secondhand

New & Pre-let

Ten-year annual average

Total

Secondhand

New & Early Marketed

SOURCE: CBRE

Banking & Finance

Computers / Hi-Tech

Insurance

Professional

Business Services

Consumer Services & Leisure

Manufacturing Industrial & Energy

Public Sector / Regulatory Body

Banking & Finance

Computers / Hi-Tech

Insurance

Professional

Business Services

Consumer Services & Leisure

Manufacturing Industrial & Energy

Public Sector / Regulatory Body

ABERDEEN PRIME OFFICE RENTS 1995 – 2017

£0.00

£5.00

£10.00

£15.00

£20.00

£25.00

£30.00

£35.00

£40.00

199

5

199

6

199

7

199

8

199

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

H1

20

13

En

d 2

013

20

14

20

15

20

16

20

17

£ P

ER

SQ

FT

FORECAST

ADDRESS DATE PURCHASER PRICE NET INITIAL YIELD COMMENTS

Glasgow, Scottish Power HQ, St Vincent Street October 2013 M & G £100m plus Confidential 220,000 sq ft. 25 year lease with structured rent reviews. On site Q4 2013.

Aberdeen, 2&3 Aspect 32 October 2013 CCLA £13.5m 6.94% 48,357 sq ft. 9.75 years unexpired to Technip.

Birmingham, 1 Brindley Place September 2013 Trinova Real Estate £30m 6.30% 69,093 sq ft. 11.50 years unexpired to Deutsche Bank AG.

Edinburgh, Citymark August 2013 Ardstone Capital £33.70m 7.20% 102,115 sq ft. Bank of Scotland plc until January 2026.

Aberdeen, Prime Four Business Park July 2013 RLAM £27.4m 6.05% 63,180 sq ft. Pre-let to Premier Oil for 15 years.

Edinburgh, Quartermile 1 July 2013 Epic UK Ltd £39.70m 6.50%121,478 sq ft. Investec, Maclay Murray & Spens LLP, Pure Gym Ltd, Skyscanner Ltd. AWULT of 7 years to tenant breaks.

Edinburgh, Lochrin Square July 2013 UBS £37.40m 6.95% 93,577 sq ft. Lloyds Banking Group, DWF Biggart Baillie. 4.5 years to tenant breaks.

Chiswick, Building 8 Chiswick Park July 2013 Schroders £71.0m 4.73% 126,222 sq ft. Let to QVC for a further 19 years.

Croydon, Renaissance July 2013 M & G £33.35m 6.27% 99,083 sq ft. Let to Pension Protection Fund on a 15 year term.

Glasgow, Sentinel June 2013 Ardstone Capital £25.15m 6.87% 84,104 sq ft. Morgan Stanley, Aon. AWULT of 4.75 years.

Edinburgh, Calton Square June 2013 GLL £56.75m 7.25%151,766 sq ft. Baillie Gifford, Pillar Property Group. January 2023 expiry. Deal agreed in August 2012.

Birmingham, 84 Colmore Row June 2013 Private £11m 5.80% 30,535 sq ft. Mills & Reeve. 11.75 years unexpired.

Ealing, Ealing Cross June 2013 Benson Elliot £37.7m 6.09% 134,582 sq ft. Multi-Let with AWULT of 4.88 years.

Manchester, 1 The Avenue April 2013 Epic UK Ltd £19.70m 6.16% 42,000 sq ft. Australasia, Giorgia Armani, Brewin Dolphin, Pinsent Masons, Outsourcery. 66% office content. 14.58 years to lease expiry, 9.58 years to tenant breaks.

Manchester, One Angel Square February 2013Grundbesitz Europa Ginko Tree Investment

£142m 6.00%329,988 sq ft. 25 year lease to Co-Operative Group incorporating structured review pattern.

Aberdeen, GDF Suez House January 2013 Tritax £16.1m 7.00% 40,375 sq ft. Pre-let to GDF Suez for 15 years.

Edinburgh, Waverley Gate December 2012 M & G £46.50m 7.25%205,170 sq ft. Scottish Ministers, Microsoft, Amazon, H & M, The British Council, Museum Galleries Scotland. AWULT of 7.75 years to breaks.

Aberdeen, Prime Four Business Park September 2012 F & C Commercial PT £94m 6.80%300,000 sq ft pre-let to Nexen Petroleum UK Ltd, Apache North Sea Ltd for 15 years, Transocean Drilling UK Ltd for 20 years. Rent reviews geared to 3% pa compounded.

Glasgow, G1, George Square September 2012 Union Invest £61.0m 6.20%131,250 sq ft. Ernst & Young, Gardiner & Theobold, Mercer, Maclay Murray & Spens, Jamie’s Italian, Browns Brasserie. AWULT of 12.4 years to breaks.

Aberdeen, Bridge View/Consort House June 2012 Gatehouse £59.9m 7.15% 158,000 sq ft. Let to Petrofac (13 years unexpired) and NHS (4 years unexpired).

INVESTMENT ACTIVITY

32

WITH A RENTAL GROWTH

FORECAST OF 17% BETWEEN 2013 AND

2017, ABERDEEN CONTINUES TO

ATTRACT MAJOR INVESTORS

ADDRESS DATE PURCHASER PRICE NET INITIAL YIELD COMMENTS

Glasgow, Scottish Power HQ, St Vincent Street October 2013 M & G £100m plus Confidential 220,000 sq ft. 25 year lease with structured rent reviews. On site Q4 2013.

Aberdeen, 2&3 Aspect 32 October 2013 CCLA £13.5m 6.94% 48,357 sq ft. 9.75 years unexpired to Technip.

Birmingham, 1 Brindley Place September 2013 Trinova Real Estate £30m 6.30% 69,093 sq ft. 11.50 years unexpired to Deutsche Bank AG.

Edinburgh, Citymark August 2013 Ardstone Capital £33.70m 7.20% 102,115 sq ft. Bank of Scotland plc until January 2026.

Aberdeen, Prime Four Business Park July 2013 RLAM £27.4m 6.05% 63,180 sq ft. Pre-let to Premier Oil for 15 years.

Edinburgh, Quartermile 1 July 2013 Epic UK Ltd £39.70m 6.50%121,478 sq ft. Investec, Maclay Murray & Spens LLP, Pure Gym Ltd, Skyscanner Ltd. AWULT of 7 years to tenant breaks.

Edinburgh, Lochrin Square July 2013 UBS £37.40m 6.95% 93,577 sq ft. Lloyds Banking Group, DWF Biggart Baillie. 4.5 years to tenant breaks.

Chiswick, Building 8 Chiswick Park July 2013 Schroders £71.0m 4.73% 126,222 sq ft. Let to QVC for a further 19 years.

Croydon, Renaissance July 2013 M & G £33.35m 6.27% 99,083 sq ft. Let to Pension Protection Fund on a 15 year term.

Glasgow, Sentinel June 2013 Ardstone Capital £25.15m 6.87% 84,104 sq ft. Morgan Stanley, Aon. AWULT of 4.75 years.

Edinburgh, Calton Square June 2013 GLL £56.75m 7.25%151,766 sq ft. Baillie Gifford, Pillar Property Group. January 2023 expiry. Deal agreed in August 2012.

Birmingham, 84 Colmore Row June 2013 Private £11m 5.80% 30,535 sq ft. Mills & Reeve. 11.75 years unexpired.

Ealing, Ealing Cross June 2013 Benson Elliot £37.7m 6.09% 134,582 sq ft. Multi-Let with AWULT of 4.88 years.

Manchester, 1 The Avenue April 2013 Epic UK Ltd £19.70m 6.16% 42,000 sq ft. Australasia, Giorgia Armani, Brewin Dolphin, Pinsent Masons, Outsourcery. 66% office content. 14.58 years to lease expiry, 9.58 years to tenant breaks.

Manchester, One Angel Square February 2013Grundbesitz Europa Ginko Tree Investment

£142m 6.00%329,988 sq ft. 25 year lease to Co-Operative Group incorporating structured review pattern.

Aberdeen, GDF Suez House January 2013 Tritax £16.1m 7.00% 40,375 sq ft. Pre-let to GDF Suez for 15 years.

Edinburgh, Waverley Gate December 2012 M & G £46.50m 7.25%205,170 sq ft. Scottish Ministers, Microsoft, Amazon, H & M, The British Council, Museum Galleries Scotland. AWULT of 7.75 years to breaks.

Aberdeen, Prime Four Business Park September 2012 F & C Commercial PT £94m 6.80%300,000 sq ft pre-let to Nexen Petroleum UK Ltd, Apache North Sea Ltd for 15 years, Transocean Drilling UK Ltd for 20 years. Rent reviews geared to 3% pa compounded.

Glasgow, G1, George Square September 2012 Union Invest £61.0m 6.20%131,250 sq ft. Ernst & Young, Gardiner & Theobold, Mercer, Maclay Murray & Spens, Jamie’s Italian, Browns Brasserie. AWULT of 12.4 years to breaks.

Aberdeen, Bridge View/Consort House June 2012 Gatehouse £59.9m 7.15% 158,000 sq ft. Let to Petrofac (13 years unexpired) and NHS (4 years unexpired).


Aberdeen is a major UK office centre

with the strongest economy outside

of London. The investment credentials

of Aberdeen set it apart from other

UK regional cities with rents forecast

to grow by almost 17% in the next 5

years. The city has attracted significant

investment in commercial property

from UK institutions, overseas funds

and high net worth individuals.

2013 has seen clear evidence of the

further strengthening of investor

interest in the UK regional office

markets with £575million transacted

and £374million under offer across

18 properties.

We highlight below a schedule of

recent significant transactions:

INVESTMENT RATIONALE

An opportunity to acquire the best building in Aberdeen with potential for

significant rental growth in the next 5 years.

Aberdeen is one of the most prosperous cities in the UK and is recognised

internationally as a Global Centre of Excellence for the energy sector.

The city is an internationally recognised business centre with globally

competitive industries, excellent academic and research capabilities and a

highly skilled workforce.

Aberdeen has a strong, diverse economy and is home to a number of major

international businesses.

Union Plaza occupies a dominant location in the heart of

Aberdeen city centre.

Transport links, public car parking and nearby city centre

amenities are excellent.

Union Plaza is Aberdeen’s premier office building.

Striking office accommodation in a landmark building.

Union Plaza is an undoubted trophy asset held on a heritable basis.

The accommodation is of Grade A specification and finishes are to an

extremely high standard.

The investment provides an average weighted unexpired lease term to

expiries of 9.2 years and to breaks of 7.7 years.

The building has attracted companies with an international reputation such

as Aberdeen Asset Management, Barclays Bank, Deloitte and Exxon Mobil.

There are 7 rent reviews in 2013, the first 2 reviews having been agreed at

£31.50 per sq ft.

Aberdeen has the greatest potential for rental growth in the next 5 years of

any major regional city in the UK.

Aberdeen office occupational market continues to be the most buoyant in

the UK outside of London.

34

CAPITAL ALLOWANCES

Capital allowances are available by separate negotiation and

further information can be provided upon request.

VAT

The property is elected for VAT. On this basis VAT will be payable

on the purchase price, however, it is anticipated that the sale will

be effected by way of a Transfer of a Going Concern (TOGC).

INVESTMENT PROPOSAL

Offers are invited in excess of £53million exclusive of VAT for our

client’s heritable interest reflecting a net initial yield of 6.59% and

an equivalent yield of 6.77% after allowing for purchasers costs of

5.8%. This assumes settlement of the 2013 rent reviews at £31.50

per sq ft producing a minimum rent of £3,695,698 per annum.

DISCLAIMER 2013 CBRE Ltd.

CBRE Ltd for itself and for the vendor/lessor as agents for the vendor/lessor give notice that:

1. We provide the information contained in these particulars for guidance to intending purchasers, licensees or any other third parties and they are for your general information only and will be used at your own risk. Photographs by Dougie Barnett / Steve Armstrong.

2. We will use all reasonable endeavours to ensure the accuracy of information, however, we do not guarantee or warrant the accuracy or completeness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties) and do not accept any liability for any errors or omission including any inaccuracies or typographical errors.

3. Any interested purchasers, licensees or any other third parties should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and specific details in the particulars are correct and accurate especially in relation to floor areas and other measurements through inspection or other means, as appropriate, and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject matter of these particulars.

4. We have not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers, licensees or any other third parties must undertake their own enquiries and satisfy themselves in this regard.

Date of publication: October 2013

FURTHER INFORMATION

For further information, or to arrange a viewing

please contact the sole selling agents, CBRE:

Derren McRae

Tel: +44 1224 219 025

Email: [email protected]

Miller Mathieson

Tel: +44 131 243 4168


Mark Routledge

Tel: +44 20 7182 2269


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