For Sale Aberdeen Business Park Dyce Drive, Dyce, Aberdeen, AB21

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ABERDEEN FOR SALE BUSINESS PARK HIGH QUALITY MULTI-LET DYCE DRIVE OUT OF TOWN BUSINESS PARK AB21 0LQ 58,263 sq ft of high specification office accommodation with value add potential INVESTMENT SUMMARY

- Aberdeen is Scotland’s third largest city and the energy capital of Europe

- High quality, multi-let out of town business park pavilion comprising three assets – Kirkhill House, Campbell House and St Fergus House

- 58,263 sq ft of high specification office accommodation

- Strategically located on Aberdeen Business Park, in close proximity to Aberdeen International Airport

- Let to a range of high-profile tenants, including Expro North Sea Ltd, Babcock MSCO Ltd and Robertson Construction Eastern Ltd

- Rebased rents offering genuine value add opportunities

- Limited capital expenditure required

- WAULT of 3.38 Years to Breaks, 7.02 years to Expiry

We are instructed to seek offers in excess of £4,500,000 (Four Million, Five Hundred Thousand Pounds), exclusive of VAT for our client’s heritable interest representing a low capital value of £77 per sq ft.

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 2 Blackdog

LOCATION A90 (AWPR) Dyce Aberdeen is Scotland’s third largest city and is widely considered A92 to be the energy capital of Europe. Historically known as ‘The Bridge of Don Granite City’, Aberdeen is a vibrant, creative and ambitious city, A96 known for its historic charm and cosmopolitan community. The City is the administrative centre for the north east of Scotland, with an estimated population of 220,000 people and a further A92 catchment population in excess of 500,000 people. Bucksburn

Aberdeen is a harbour city on Scotland’s North-East coast, A96 approximately 125 miles (201 km) north of Edinburgh, 145 miles (234 km) north of Glasgow and 540 miles (878 km) north of London. The city has strong communication links with the rest of Scotland and the UK. The A90 trunk road links Aberdeen with the Scottish motorway network, making Edinburgh and Glasgow Kingswells accessible in just over two hours.

Aberdeen City Centre

The introduction of the Aberdeen West Peripheral Route (AWPR) Dyce Drive in February 2019 has further improved accessibility across various parts of theBridge city in particular Dyce. The route was Scotland’s largest Aberdeen construction project costing £745 million to construct the 58 km (36 Cults Of Dee AWPRInternational Airport mile) road. This has already significantly improved commuter journey times in and around the city.

In close proximity to the subjects, Aberdeen’s new exhibition and Milltimber A93 conference centre – the P&J Live Arena - opened in August 2019. The total development cost £335 million and the total offering is a 15,000 arena capacity with 48,000 sq m of flexible event space, 7 conference spaces able to accommodateCove Bay 5,000 people, 350 on site River Dee hotel bedrooms and 150 seat restaurant.

Aberdeen International Airport has recently undergone a £20 million expansion, adding 50% extra area to the previous terminal, further extending the excellent connectivity offering to the rest of the UK A90 (AWPR) and Europe. Portlethen A956 The city will be bolstered by the introduction of an ‘energy transition zone’, which will be allocated £26m by the Scottish government to help the transition from oil and gas jobs to green energy. Planned projects include manufacturing for floatingNorth offshore Sea wind farms, a skills academy and facilities for testing hydrogen power. The Aberdeen Energy Transition Zone (ETZ) is being built south of Aberdeen harbour and is expected to directly support 2,500 green ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 3 jobs by 2030, alongside a further 10,000 transition-related jobs. A92

AWPR SITUATION

Aberdeen Business Park is situated on Dyce Drive and the A96 trunk road, approximately 6 miles to the north west of Aberdeen city centre. Dyce Drive and the A96 form the principal route between Aberdeen Airport and the city centre. The subjects are a short distance from the AWPR which provides easy access to all areas of the city and Aberdeenshire in general.

Dyce is recognised as one of Aberdeen’s primary out of town office Weatherford locations as demonstrated by attracting tenants including BP, Baker Metrol Hughes, Halliburton, Oceaneering, Expro and Schlumberger. SPEX Group

Baker Hughes

Hydratight

DHL Iron Mountain Dyce Drive

Petrasco

Kuehne & Nagel

Car Park Aberdeen Airport Long Stay

Schlumberger Oilfield

Bristow Helicopters

AIS Survivex

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 4 ABERDEEN: ECONOMY AND CITY DYNAMICS

The city of Aberdeen is one of the most prosperous places in Scotland, due primarily to the North Sea Energy Industry, with a low unemployment rate of 4.5% (Office of National Statistics, 2020). Further to this, Aberdeen’s international recognition as a centre of excellence for the energy sector, the City benefits from a diverse economy, with the financial and business services sector accounting for 24.5% of the total employment, with technology accounting for a further 14%.

The Aberdeen City Region’s oil and gas industry has put Scotland on the map as a centre of global excellence in offshore engineering, subsea technology and in the export of offshore goods and services, which has increased by 31% over the last two years and is today worth around £4billion a year. (Invest Aberdeen)

One of the main factors for the high-quality education and low unemployment rates is the provision of further education in the city, with The University of Aberdeen and Robert Gordon University listed as 25th and 95th respectively in the Times Higher Education Best Universities 2020.

The city benefits from a further seven major research institutions, ensuring a strong provision of talented and educated workforce to local businesses.

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 5 ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ Campbell House DESCRIPTION

The property comprises three high specification offices – Kirkhill House, Campbell House and St Fergus House. Built in 2002, the asset provides high quality, flexible office accommodation, arranged around a central reception, over ground and first floors.

The common entrance areas of both St Fergus House and Kirkhill House have recently been refurbished. The pavilions are highly flexible and can be easily sub-divided to provide accommodation for a range of requirement sizes.

The property benefits from the following specification:

St Fergus House

High quality Comfort cooling Open plan floor double height and raised access plate with offices reception area floors throughout and meeting rooms - reducing initial capex on fit-out

Tea prep area, 8 person Excellent parking WC and shower passenger lift provision - 32 car facilities parking spaces PAGE 6 (1:265 sq ft) TYPICAL FLOOR PLAN

Ground Floor Campbell House

Ofﬁce Ofﬁce

Ofﬁce South Training Room Ofﬁce 258 sq m (2,780 sq ft) North 450 sq m (4,846 sq ft)

Store

ACC Store WC Breakout / Tea Prep

Meeting Room Meeting Room Ofﬁce F/WC M/WC Open Plan Ofﬁce

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 7 TENANCY SCHEDULE

Description Description NIA ( Sq Ft) Tenant Rent (pa) Rent (psf) ERV Break Option Rent Review Lease Expiry

Ground 16,212 Expro North Sea Ltd £194,544 £12.00 £13.00 10/10/2025 10/10/2025 09/10/2030

Unit 1, Kirkhill House First Floor - East 7,506 Babcock MCSO Ltd £90,072 £12.00 £13.00 16/09/2023 - 16/09/2025

First Floor - North 8,848 Vacant - - £13.00 - - -

Ground Floor North 4,846 Vacant - - £13.00 - - -

Ground Floor South 2,780 Vacant - - £13.00 - - - Unit 2, Campbell House

First Floor 7,722 Vacant - - £13.00 - - -

Ground 5,174 Vacant - - £13.00 - - -

Unit 3, St Fergus House Robertson Construction First Floor 5,175 £62,100** £9.00 £13.00 22/03/2024 - 21/03/2026 Eastern Ltd

WAUTC WAULT* Total 58,263 £346,716 £757,419 3.38 years 7.02 years

* WAULT provided as at 12/07/2021

** Lease was agreed with 15 months rent free, taken as a reduced rent over 5 years so £46,575 per annum ASSET MANAGEMENT OPPORTUNITIES

• Refurbished space available for immediate tenant occupation • Low capital expenditure requirement • Rates mitigation possibilities • Service charge review • Divide floors or suites into smaller, more marketable sizes • Engage with existing tenants lengthen WAULT

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 8 COVENANT St Fergus House

Expro North Sea Limited (D&B Rating 5A2)

Expro is a leading provider of services and products that measure, improve, control and process flow from high-value oil and gas wells.

The company offers products, services and technology through 5 areas:

• Well Testing & Commissioning • Production Systems • Wireline Intervention • Drilling Chokes • Connectors & Measurements

Kirkhill House

Babcock MSCO Ltd (D&B Rating N3) Robertson Construction Eastern Ltd (D&B Rating 3A1) Babcock MSCO Ltd is a British helicopter operator, specialising in providing offshore helicopter Robertson Eastern is an Aberdeenshire- transportation services to North Sea and Irish Sea based construction company, specialising oil and gas platforms. Annually they transport in building healthcare, education, leisure, around 200,000 men and women to and from hospitality and other commercial properties. offshore oil and gas platforms from bases at Aberdeen, Norwich and Sumburgh airports. Babcock also operates two specialist Search and Rescue (SAR) aircraft to support the Oil and Gas industry, which are based at Aberdeen airport.

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 9 Kirkhill House

Kirkhill House

• Despite challenging market conditions, take up for 2020 totalled 424 797 sq ft. Although this is down from 2019’s total of 505,710 sq ft, it is 11.3% above the five year average and represents the City’s second best year for office take up since ABERDEEN the oil price crash. Aberdeen is all too familiar with economic disruption and it is perhaps it is the City’s resolve and resilience that explains how it has managed to successfully navigate both a global pandemic and oil price fluctuations, delivering some overall positive end of year figures. The year ended on a relative OCCUPATIONAL high with Q4 take up reaching 155,926 sq ft. It is worth noting the largest deal of the year was in Q4 with BP committing to a new 102,000 sq ft new North Sea HQ at Aberdeen International Business Park, Dyce, a short distance from the MARKET subject property. • The total number of deals in 2020 was 53 down from 84 in 2019. The average letting size was therefore c 8,000 sq ft, with the median at c 3,000 sq ft.

• The Aberdeen office market is understandably in an area of uncertainty and recovery and will ultimately depend on the true impact of both COVID 19 and challenges in the energy sector. There is no doubt the demand for office paces will change across the city and nationally post COVID 19 as organisations look to reduce office footprint and staff work on a more flexible basis. Although1 Q 2021 appears to be off to a slow start, with only 28,902 sq ft of transactions completing, we are encouraged by the fact that there is currently approximately 200,000 sq ft of active requirements which could translate to potential future take up across the city.

ABERDEEN BUSINESS PARK - DYCE DRIVE - AB21 0LQ PAGE 10 ABERDEEN BUSINESS PARK DYCE DRIVE AB21 0LQ FURTHER INFORMATION

TENURE CONTACT

Heritable Interest (Scottish Equivalent of English Freehold). Further information is available from the joint selling agents:

ENERGY PERFORMANCE CERTIFICATE (EPC)

The pavilions have the following EPC Ratings:

Unit 1 D Oli Cory Gordon Pirie Unit 2 D [email protected] [email protected] Unit 3 There are works being carried out to the air conditioning at this T +44 (0) 131 243 4183 T +44 (0) 1224 644 711 unit and an EPC will be prepared after those are completed M +44 (0) 7557 601 755 M +44 (0) 7525 240 453

Steven Newlands CAPITAL ALLOWANCES [email protected] T +44 (0) 131 243 4171 Further information can be made available upon request. M +44 (0) 7887 795 501

For Occupational Enquiries: VAT Amy Tyler The property has been elected for VAT and therefore VAT will be payable [email protected] On the instructions of on the purchase price. However, it is anticipated that the sale will be T +44 (0) 1224 219034 treated as a Transfer of a Going Concern (TOGC). M +44 (0) 07481 825461

MISREPRESENTATION ACT: CBRE for themselves and for the vendors of this property whose agent they are, give notice that: These particulars do not constitute, nor constitute any part of, an offer or a contract. All statements contained in these particulars as to this property are made without responsibility on the part of CBRE or the vendors or lessors. None of the statements contained in these particulars as to this property are to be relied on as statements or representations of fact. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars. The vendors do not make or give and neither CBRE nor any person in their employment has an authority to give any representation or warranty in relation to this property. July 2021.