UNIT 6A - 6B GREENWELL ROAD EAST TULLOS AB12 3AX

INDUSTRIAL INVESTMENT OPPORTUNITY UNIT 6A - 6B GREENWELL ROAD EXECUTIVE EAST TULLOS ABERDEEN SUMMARY AB12 3AX

• Well located industrial property on a site of 0.558 hectares (1.38 acres). • Total gross internal area of 1,865 sq m (20,076 sq ft) with yard of 2,222 sq m (23,918 sq ft). • Let to ASCO UK Ltd and guarantee by ASCO Holdings Ltd – both with Dun & Bradstreet ratings of 5A1. • Lease until 30th June 2026 providing (7.3 years unexpired) at a current passing rent of £281,541 per annum. • Further upwards only rent review due on 1st July 2021 in line with RPI (2% collar and 4% cap). • Long leasehold interest until 2136 (117 years unexpired) with current rent payable of £39,500 per annum providing a net rent of £242,041 per annum. • We are instructed to seek offers in excess of £1,825,000 exclusive of VAT. Purchase at this level reflects an attractive net initial yield of 12.50% after allowing for standard purchasers costs and LBTT. Newmachar

A947

A90 ABERDEEN (AWPR)

Aberdeen is Scotland’s third largest city and is the energy capital of ABERDEEN Europe, making it one of the most prosperous business focussed AIRPORT cities in the UK. The population of the city is estimated at 220,000 TO INVERURIE RIVER DONBridge of Don people with a catchment population in excess of 500,000. A96 PETERHEAD INVERNESS BRIDGE A82 Output per worker in Aberdeen (£62,500 per annum) is A96 OF DON second only to Edinburgh (£68,150 per annum) and also beats other UK regional cities including Manchester, Leeds A92 and Bristol. A9 ABERDEEN

Aberdeen Western Peripheral Route (AWPR) completed in A956 BUS / February 2019 costing £745 million to construct the A9 A90 A90 TRAIN 58 km (36 mile) road. This has already improved (AWPR) STATION commuter journey times in and around the city. A second DUNDEE harbour port costing £350m is under construction, with ABERDEEN A85 ABE RDEE N completion due A944 ABERDEEN HARBOUR CITY in 2021. M90 CIT Y M80 A92 Aberdeen is set to become Scotland’s first city in which GLASGOW M9 nearly every home and business will have access to EDINBURGH M8 gigabit-speed broadband. NEW HARBOUR M77 CULTS UNDER CONSTRUCTION

M74 RIVER DEE A956 A93

NEWCASTLE ABERDEEN’S ENERGY SECTOR DUMFRIES

Aberdeen has been at the forefront of the shifting from the supermajors to specialist British offshore energy industry since the operators focussed on increasing returns 1970s and is widely recognised as the from technically challenging wells and A956 energy capital of Europe. Leading oil and new discoveries. This is extending the life gas companies operate from regional of the industry as new entrants develop M6 MIDDLESBROUGH headquarters in the city. Such organisations ways to operate more efficiently. According M1 include BP, Shell, Total, Repsol Sinopec, to analyst Wood Mackenzie a further $13bn A92 TAQA, CNOOC and Apache. In the last two of private equity investment could be years a wave of new private equity backed deployed in the market. With a lower cost PORTLETHEN investment has burst onto the scene. More base independents can consolidate around LEEDS A90HULL than $12bn of private equity money poured existing hubs, maximise production, drive (AWPR) into the UK North Sea, backed by some of the innovation, increase recovery and reduce biggest names in the industry. Private capital decommission spend. M62 investment has reshaped the asset ownership SHEFFIELD landscape, with significant resources LIVERPOOL Muchalls BALMORAL GROUP

SHELL UK HQ RIVERSIDE DRIVE WELLINGTON RD (A957)

STAGECOACH

STENA DRILLING

JOHN LAWRIE GROUP

SUBSEA 7

PELAGIA UK

GREENWELL RD

UNIT 6A - 6B GREENWELL ROAD JOHN CLARK EAST TULLOS MOTOR GROUP ABERDEEN AB12 3AX NEW HARBOUR UNDER CONSTRUCTION ABERDEEN HARBOUR

UNIT 6A - 6B GREENWELL ROAD EAST TULLOS ABERDEEN AB12 3AX SITUATION GREENWELL ROAD • EAST TULLOS • ABERDEEN • AB12 3AX

The property is located on the East Tullos Industrial Estate, two miles to the south of the city centre / harbour, on the east side of the A956 Wellington Road; one of the main routes to the south. RIVERSIDE DRIVE East Tullos is one of the principal industrial areas serving the southern & eastern sides of Aberdeen. Whilst the area is predominantly industrial, there are also a number of large GIRDLENESS RD. A9013 office users and car showroom operators within the locality. Major nearby occupiers include Shell, Subsea 7, Stena Drilling, Greenwell Equipment, BSS and John Clark A945 A945 Motor Group. GREENWELL RD. GREENBANK RD. RIVER DEE

The Aberdeen Western Peripheral Route, which completed in 2019, has a major junction, ABBOTSWELL RD. 3 miles south of the subject property, which has further enhanced its connectivity to the North and West, including Aberdeen International Airport. For example a typical journey from Tullos / to Dyce is now 20 minutes shorter than before.

GREENBANK CR. A90 A second harbour port at Nigg Bay, approximately 2 miles to the east is due for completion in 2021. WEST TULLOS RD.

A90 (A956) WELLINGTON RD. DESCRIPTION SHELL UK HQ

The property comprises two inter-linked industrial warehouses positioned behind a two storey office block with a substantial concrete yard area to the rear of the site. The warehouse is of traditional steel portal frame construction and has concrete floors. Walls are of blockwork construction with an external render finish and profile metal sheet cladding above.

The roofs have been overclad with profile metal sheeting which benefits from a number of translucent roof lights. The eaves height within the warehouse varies between 5.2 metres and 6.2 metres.

The two storey offices to the front of the building are fitted out with suspended ceilings, integral CAT2 lighting and three pipe VAV air conditioning with carpet tiles and vinyl flooring. There are toilet and canteen provisions on both floors, with a disabled toilet and shower on the ground floor. The tenant has added a steel frame mezzanine which is enclosed within timber framed walls to create an archive room.

The yard area is surfaced in predominately concrete and in addition there is car parking for 24 cars to the front and sides of the building along with ample circulation space to the rear. The site is secured by steel palisade fencing security gates and CCTV.

The approximate site area is 0.558 hectares (1.38 acres) and the site coverage is approximately 25%. ACCOMMODATION TENURE

We have measured the property in accordance with the RICS Code The property is held on a Long Leasehold basis from Aberdeen City Council. The lease term is 128 years of Measuring Practice (6th Edition) and the property has the following from 28th May 2008 and expires on 27th May 2136 (117 years remaining). The lease was subject to a approximate Gross Internal: fixed increase at the last review on 28th May 2018 to £39,500 per annum. The lease contains five yearly rent reviews to open market rental value basis with the next in May 2023.

AREA FLOOR/UNIT SQ M SQ FT Warehouse 750.45 8,078 Ground Floor Office 569.32 6,128 First Floor Office 480.21 5,169 Mezzanine (Archive Room) 65.11 701 Total Area (exc yard) 1,865.09 20,076 Concrete Yard 2,222 23,918

TENANCY

The property is leased to ASCO UK Ltd until 30th June 2026 at a current passing rent of £281,541 per annum. The rent is subject to five yearly upward only rent reviews based on RPI with a collar and cap of 2% and 4% per annum. The next rent review is 1st July 2021.

The lease is guaranteed by ASCO Holdings Ltd.

ASCO sub-lease part of the first floor offices to Geolog UK Ltd. Further details are available within the data room.

COVENANT INFORMATION

ASCO was established in 1967 to support the requirements of the offshore industry in the UK North Sea and is now the leading provider of logistics and materials and management services to the oil and gas industry. ASCO now operates in eight countries across more than 70 operating locations with over 1,500 people. Key services include; warehousing, transport, materials management, quayside services, environmental and decommissioning and safety training and advisory. Further information can be found here: ascoworld.com

ASCO UK Ltd have a Dunn & Bradstreet Credit Rating of 5A1 based on 31st December 2018 with a tangible net worth of £94,737,000.

The lease is guaranteed by ASCO Holdings Ltd who have a Dunn & Bradstreet Credit Rating of 5A1 based on 31st December 2018 with a tangible net worth of £84,703,000. EPC RATING

The property has an EPC rating of D58

CAPITAL ALLOWANCES No capital allowances are available.

VAT &TOGC The property has been elected for VAT. It is however anticipated that FURTHER the sale will be treated as a Transfer of Going Concern (TOGC). INFORMATION

Chris Ion PRICING & YIELD PROFILE Partner, Aberdeen We are instructed to seek offers in excess of £1,825,000 exclusive of VAT. [email protected] A purchase at this level reflects an attractive net initial yield of 12.50% 01224 415 969 / 07717 425 298 after allowing for standard purchasers costs and LBTT. 4 Albert Street Aberdeen AB25 1XQ

Rhu Wishart Surveyor, Edinburgh

[email protected] 0131 322 3078 / 07966 393 088

UNIT 6A - 6B 2 Castle Terrace GREENWELL ROAD Edinburgh EH1 2EL EAST TULLOS ABERDEEN AB12 3AX

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. 2019.