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ALTEC CENTREMinto Drive, Altens, Aberdeen, AB12 3LW

FOR SALEQuality Multi-let Office Investment

ALTEC CENTRE • ALTENS, ABERDEEN

INVESTMENT SUMMARY LOCATION DESCRIPTION & SITE PLAN TENANCIES

TENURE, SERVICE CHARGE, EPCs, VAT

& PROPOSAL

• Altens is one of the prime and best located commercial areas in Aberdeen

• Two office blocks providing seven 2-storey interconnecting offices

• 29,495 sq ft let to 6 quality tenants

• The current rent is £468,087 pa with rents ranging from £15.00 to £18.19 psf

• Our ERV is £480,048 pa which assumes £16.00 psf for the 2,000 – 3,000 sq ft units and £18.00 psf for the 1,000 sq ft units

• Strong tenant demand demonstrated by significant recent letting activity

• Very strong Aberdeen economy creating an environment for further rental growth

Investment Summary

Offers over £5,000,000 reflecting a net initial yield of 8.85% and a reversionary yield of 9.07% assuming 5.80% purchasers costs

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DyceStationDyceStation

AberdeenCity Centre

Station

AberdeenCity Centre

Station

AberdeenInternational

Airport

AberdeenHarbour

BP Exploration AberdeenNorth Sea HQ

ALTEC CENTRE

Aberdeen is Scotland’s third largest city with a population of c. 210,000 and is located on the north-east coast, approximately 125 miles north of Edinburgh and 150 miles north-east of Glasgow. The city benefits from excellent transport links to the rest of the UK, with direct flights to all the major UK destinations and several European cities.

The city is a major international centre within the worldwide energy sector and the European hub for oil and gas exploration and production in the North Sea. The city has experienced exceptional growth in recent years resulting in a

thriving economy. The city has one of the most dynamic economies in the UK, with unemployment rates that are significantly below the Scottish and UK averages. In addition the city is the administrative capital of North East Scotland, has a wealth of food, fisheries and agricultural organisations and is home to over 20,000 students.

The strength of the Aberdeen economy is reflected in the office occupational market. Demand in the city has outstripped supply since the middle part of 2011 creating a strong platform for rental growth.

Aberdeen

LocationThe Altec Centre is located within Altens, one of Aberdeen’s prime and most popular commercial locations. It is the location of Altens which has led to its popularity as a commercial area. It is close to the city centre (circa 2 miles), the harbour and has very strong transport links to the city’s main arterial routes and the A90 (the main road south from Aberdeen). Altens provides a mix of industrial and office buildings.

The Altec Centre is located in a prominent position within Altens on the corner of Minto Avenue and Minto Drive directly opposite the North East Scotland College – Altens Campus. Altens is characterised by high quality occupiers including John Lewis, Schlumberger, Aggreko, Mobil, Cameron Halliburton, AALCO and Maersk Oil.



& PROPOSAL


The subjects comprise two separate 2-storey office buildings, providing 14 open plan office suites with a total of 101 car spaces (94 are allocated to tenants). The units were constructed in the mid 1980’s and are of steel frame construction with powder coated cladding, powder coated double glazed windows and plastisol coated profile steel cladding to the roof surfaces.

Internally, the specification includes concrete floors with carpet tile finish, painted plasterboard lined walls, suspended ceilings with recessed CAT 2 light fittings and perimeter panel radiators.

Internally the occupational tenants have generally fitted out the offices to a high standard.

Description



& PROPOSAL


MIN

TO A

VENUE

MINTO DRIVE

BLOCK 3

BLOCK 4BLOCK 5

BLOCK 6

BLOCK 7

BLOCK 2

BLOCK 1



& PROPOSAL

IMORPH Ltd

Based in Aberdeen and Houston, IMORPH delivers technical training to multinational oil and gas companies through it’s ‘activebrain™’ and ‘Brilliant Work Management’ programmes. In the year to 13/12/2012 they reported a net worth of £94,107.

ADT Fire and Security PLC

ADT is the UK’s leading provider of electronic fire and security solutions. In the year to 29/09/2013 they reported turnover of £341,982,000 and pre-tax profit of £21,214,000 and a net worth of £491,949,000.

3M United Kingdom PLC

3M is a diversified technology company serving customers and communities with innovative products and services. Their brands include Post-It, Scotchguard, Filtrete, Command Adhesives, Nexcare Health, Littman Stethoscopes and Scotchprint. In the year to 31/12/2013 they reported turnover of £574,352,000 a pre-tax profit of £50,190,000 and a net worth of £141,884,000.

M-I Drilling Fluids UK Ltd

M-I Drilling Fluids UK Ltd mines barite ores. The company was incorporated in 1995 and is based in Aberdeen. In the year to 31/12/2012 they reported turnover of £397,212,000 a pre-tax profit of £37,074,000 and a net worth of £210,443,000.

Total E&P UK Ltd

TOTAL E&P UK Limited is one of the largest operators in the UK sector of the North Sea in terms of production and reserves, and is one of the largest exploration and production subsidiaries of the TOTAL Group. In the year to 31/12/2013 they reported turnover of £1,460,536,000

a pre-tax profit of £474,126,000 and a net worth of £88,549,000.

TOTAL have initiated the process of developing a new 208,000 sq ft (20.8 acres) HQ nearby in Altens on Crawpeel Road. The development is sheduled to complete during summer / autumn 2017. TOTAL are expected to continue occupying Altec until their new HQ is completed.

ISIS Technical Services Ltd

ISIS is the industry leader in advanced subsea cathodic protections survey being a leading edge provider of innovative subsea cathodic protection monitoring solutions & underwater inspection technologies.

Block 1 – Ground 2010

29/07/2011 28/10/202129/10/2016 & 5 yearly

29/10/2016 15 £60,375 £15.00 £64,400 £16.00£15,093.75 rent penalty if break option exercised. 6 months notice required for break option.

Block 1 – First 2015

4025

Tenant Name Block / Floor NIA sq ft Lease Start Expiry DateNext

Review

Tenant Break Option

Car Spaces Rent paRent per

sq ftERV pa

ERV per sq ft

Comments

IMORPH Ltd


09/06/2014 08/06/2019 09/06/2017 08/06/2017 26 £139,344 £16.00 £139,344 £16.006 months notice required for break option. Schedule of condition.



8709

ADT Fire and Security PLC

Block 3 – Ground 2602 14/07/2014 13/07/2019 14/07/2017 14/06/2017 7 £41,600 £15.99 £41,632 £16.006 months notice required for break option. Photographic Schedule of Condition. Service charge cap at £13,010 with RPI increases.

3M United Kingdom PLC

Block 4 – First 2004 14/06/2012 13/06/2017 13/06/2015 6 £30,060 £15.00 £32,064 £16.00 Lease extended in 2012.

ISIS Technical Services UK Ltd Block 7 – First 1017 02/06/2014 01/06/2019 4 £18,500 £18.19 £18,306 £18.00 £4,625 rent deposit held for 12 months.

7 Car Spaces not allocated

29,495 Total 101 £468,087 £480,048

M-I Drilling Fluids UK Ltd


20/04/2012 19/04/2017

Blocks 4, 6 & 7

19/04/2015 19/10/2015 19/04/2016 19/10/2016 Block 5 has

no break provisions

7 £31,904 £16.00 £31,904 £16.00

Lease recently extended by 3 years. 3 months notice for break options subject to rent penalties. Photographic Schedule of Condition. Service charge cap at £44,552 pa subject to RPI increases.

Block 5 – Ground 3039 10 £48,624 £16.00 £48,624 £16.00

Block 5 – First 3058 10 £48,928 £16.00 £48,928 £18.00

Block 6 – Ground 1013 3 £16,208 £16.00 £18,234 £18.00

Block 6 – First 1022 3 £16,352 £16.00 £18,396 £18.00

Block 7 – Ground 1012 3 £16,192 £16.00 £18,216 £18.00

11138 36 £178,208 £184,302

Total E&PUK Ltd

Service Charge

TenureThe property is held long leasehold on a 999 year lease from 28/07/1998 until 27/07/2997 at £1pa subject to a right to purchase any time after 01/01/2023 for £1.

EPCsEPCs have been carried out and will be made available to interested parties.

The service charge budget runs to 28/02/2015. The annual budget is £92,052 pa (£3.12 psf) which is fully recoverable from the occupational tenants. Two tenants have service charge caps although there are no shortfalls in recovery as the caps are above the current service charge levels. Insurance and gas/electricity is charged to tenants separately and does not form part of the service charge.

VATThe property has been elected for VAT and therefore VAT will be payable in respect of the purchase price. We anticipate the transaction can be treated as a TOGC (Transfer of Going Concern).

Proposal

We are instructed to seek offers in excess of £5,000,000 (Five million pounds) which reflects a net initial yield of 8.85% with a reversionary yield of 9.07% (assuming 5.80% purchaser’s costs).



& PROPOSAL

Writings (Scotland) Act: This document does not and shall not constitute, form part of, vary, or seek to vary, any contract or unilateral obligation. Misrepresentations Act: Reith Lambert for themselves and the vendors or lessors of this property whose agents they give notice that ; (i) the particulars are set out as a general guidance for intended purchasers or lessees, and do not constitute any part of an offer or contract ; (ii) descriptions, dimensions, reference to condition and necessary permissions for use and occupations and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them ; (iii) no person in the employment of Reith Lambert has any authority to make or give any representation of warranty whatever in relation to this property; (iv) unless otherwise stated all prices, rents and premiums etc are quoted exclusive of Value Added Tax (VAT). Any intending purchaser or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction. These particulars have been prepared as at September 2014.

Further InformationEwan CartwrightDD 0141 225 [email protected]

Drew LambertDD 0141 225 [email protected]

for sale - reithlambert.co.uk · for sale quality multi-let office investment. ... market. demand...

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