FOR SALE Quality Multi-let Office Investment ALTEC CENTRE Minto Drive, Altens,, AB12 3LW
Investment Summary Altens is one of the prime and best located commercial areas in 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 psf for the 2,000 3,000 sq ft units and psf for the 1,000 sq ft units Strong tenant demand demonstrated by significant recent letting activity Very strong economy creating an environment for further rental growth 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 ALTEC CENTRE ALTENS, 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. 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 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 Location The strength of the 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. The Altec Centre is located within Altens, one of 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 ). 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. Proposed We stern Peripheral Route (Bypa ss) International Airport A96 A944 A93 Dyce Station BP Exploration North Sea HQ River Dee A90 River Don City Centre Station ALTEC CENTRE A90 A956 Harbour ALTEC CENTRE ALTENS, ABERDEEN
Description 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. MINTO AVENUE BLOCK 1 BLOCK 2 BLOCK 7 BLOCK 6 BLOCK 3 MINTO DRIVE BLOCK 4 BLOCK 5 ALTEC CENTRE ALTENS, ABERDEEN
Tenant Name Block / Floor NIA sq ft Lease Start Expiry Date IMORPH Ltd ADT Fire and Security PLC Block 1 Ground 2010 Block 1 First 2015 4025 Block 2 Ground 3058 Block 2 First 3053 Block 3 First 2598 8709 29/07/2011 28/10/2021 Next Review 29/10/2016 & 5 yearly Tenant Break Option Car Spaces Rent pa Rent per sq ft ERV pa ERV per sq ft 29/10/2016 15 60,375 15.00 64,400 09/06/2014 08/06/2019 09/06/2017 08/06/2017 26 139,344 139,344 Comments 15,093.75 rent penalty if break option exercised. 6 months notice required for break option. 6 months notice required for break option. Schedule of condition. 3M United Kingdom PLC Block 3 Ground 2602 14/07/2014 13/07/2019 14/07/2017 14/06/2017 7 41,600 15.99 41,632 6 months notice required for break option. Photographic Schedule of Condition. Service charge cap at 13,010 with RPI increases. M-I Drilling Fluids UK Ltd Total E&P UK Ltd Block 4 First 2004 14/06/2012 13/06/2017 13/06/2015 6 30,060 15.00 32,064 Lease extended in 2012. Block 4 Ground 1994 Blocks 7 31,904 31,904 Block 5 Ground Block 5 First Block 6 Ground Block 6 First Block 7 Ground 3039 3058 1013 1022 1012 11138 20/04/2012 19/04/2017 4, 6 & 7 19/04/2015 19/10/2015 19/04/2016 19/10/2016 Block 5 has no break provisions 10 10 3 3 3 36 48,624 48,928 16,208 16,352 16,192 178,208 48,624 48,928 18,234 18,396 18,216 184,302 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. ISIS Technical Services UK Ltd Block 7 First 1017 02/06/2014 01/06/2019 4 18,500 18.19 18,306 4,625 rent deposit held for 12 months. 7 Car Spaces not allocated 29,495 Total 101 468,087 480,048 IMORPH Ltd Based in 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. 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.
EPCs EPCs have been carried out and will be made available to interested parties. Tenure The 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. Service Charge 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. VAT The 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). Further Information Ewan Cartwright DD 0141 225 5709 ewan@reithlambert.co.uk Drew Lambert DD 0141 225 5714 awl@reithlambert.co.uk 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.