A 25,000 sq ft headquarter building at Abercrombie Court in Westhill, Aberdeen, has been acquired by a private investor for £4 million.

FG Burnett acted on behalf of Gladman Developments in the sale of the three story building, which is leased to Fairfield Energy for a 10 year period.

David MacLeod, FG Burnett director, said: “We are delighted to have acted on behalf of Gladman on the sale of the Fairfield investment, which is one of the final pieces in the jigsaw of the hugely successful Abercrombie Court development.

“Gladman had the confidence and vision to build speculatively 135,000 sq ft of Grade A office accommodation. They have been rewarded with a development which is now fully occupied, with the majority now sold on to investors and owner occupiers.

“Westhill and Kingswells is undoubtedly Aberdeen’s prime out-of-town office hub with an excellent blend of office occupiers, both in terms of sector and size. 

“Gladman specifically identified the demand for a range of office buildings ranging from 1,000-25,000 sq ft. The end game is a vibrant business park with 38 companies now located at Abercrombie Court.”

The tenant, Fairfield Energy, is an independent North Sea oil and gas operator, which relocated from its previous location at Dyce to the Arnhall Business Park site.

In a £13.75m deal, Riverside House in Aberdeen has been sold by Rockspring Property Investment Managers, on behalf of one of their mandated clients, to Aston Property Ventures.  

Scottish based property firms Ambassador Group and Graham + Sibbald advised Aston Property Ventures on the acquisition and will have an ongoing advisory role in the management of the asset.  

The investment is located within Aberdeen’s expanding Riverside Business Quarter, where rents have recently achieved £29 per sq ft.

Acting on behalf of Aston Property Ventures, Sandy Gilmour, investment specialist at Graham + Sibbald, said: “Aberdeen continues to attract capital and investment from a wide variety of sources."

Image: 'Riverside House, 'supply and demand, create opportunities for rental growth'

Stirling Development Agency welcomes Keep Scotland Beautiful and Forth Valley GIS to Castle Business Park, Stirling.

Valad Europe’s 50/50 joint venture with Stirling Council, Stirling Development Agency (SDA), has agreed new leases with Keep Scotland Beautiful and Forth Valley GIS at Castle Business Park.

Keep Scotland Beautiful, the environmental charity, has relocated its headquarters to 8,000 sq ft of space on the first floor of Strathallan House on a five-year lease at a headline rent of £13.50 per sq ft. 

The charity campaigns for a clean and tidy country, as well as focusing on issues around climate change, sustainable development and community engagement. Strathallan House comprises a two-storey office pavilion with a double-height reception area.

Image: Castle Business Park

Kanoo Travel Group is moving into new premises on Edinburgh’s Princes Street. The family owned business, which specialises in luxury holidays, will occupy the former Lush premises.

Kanoo has taken a 10 year lease on the building, which covers 628 sq ft on the ground floor and 384 sq ft at basement level, at £120,000 per annum.  

The largest travel company in the Middle East with over 200 offices worldwide, Kanoo sailed into the UK in 2007 after acquiring American Express’s High Street leisure travel businesses. 

Stuart Moncur, head of National Retail Services at Cushman & Wakefield, represented the landlord Henderson Global Investors. 

He said: “Princes Street is a fantastic location for a travel agent and foreign exchange business with millions of visitors passing by every year. 

Aberdeen’s buoyant office market continues to bounce upwards with eight bids lodged by a closing date for a prime West End property, three of which were between £1.7 and £1.8 million.

The 4,000 sq ft three storey detached townhouse at 18 Carden Place was owned by partners in legal firm Esslemont Cameron Gauld, which merged last July with Ledingham Chalmers.

Property consultants FG Burnett, who handled the sale on behalf of the partners, said the price achieved was indicative of the high demand for office accommodation in Aberdeen’s sought after West End business district.

COOK, the frozen ready meals manufacturer and retailer, is to open its first premises in Scotland at 328 Morningside Road, Edinburgh.

The company has taken the retail unit next to I J Mellis cheesemonger, extending to 815 sq ft, on a ten-year lease at a rent of £21,000 per annum. Ryden acted on behalf of the landlord in the deal.

The company is a £22m independent family business that has been trading since 1997. It now has a national network of more than 50 branded shops, an online delivery service and more than 300 concessions in farm shops and independents.

The firm’s founding principle was to use the same techniques and ingredients that a good domestic cook would use at home. As proof of its handmade nature, the name of the individual chef who cooked each dish is printed on the packaging.

In a move that could see over 1000 homes being built across Scotland, law firm Tods Murray acted for Harworth Estates on the Scottish aspects of a £10m deal with Taylor Wimpey. 

Harworth Estates is a division of UK Coal, the largest independent coal minining company in the UK.

As part of the deal, Taylor Wimpey purchased a portfolio of Scottish estates consisting of 240 acres of land spread across three sites in Fife and the central belt.

Compropscotland swept past two significant mileposts today (9 May 2011). At 9.22 this morning we uploaded our 1000^th story since our re-launch in mid-November 2010. Then, just over two hours later at 11.27am, the site recorded its 100,000^th hit.

Stewart McIntosh, Comprop’s editor and director, said: “We didn’t expect to hit either of those mileposts until mid-June – so it came as a pleasant surprise when we achieved them both on the same, sunny, May morning. We’re logging 800 to 1000 hits a day, which in covering a specialist sector, demonstrates a strong – and highly professional –readership. And those 1000 stories add up to half a million words – each of them about property in its various forms, sectors and regions.

“From the outset, we aimed to establish ourselves as the top source of news, comment and research about Scotland’s commercial property sector – a sector that doesn’t get the coverage it deserves in the mainstream business pages. As property and construction digs its way out from under the rubble of the market crash, we follow the story step by step – and brick by brick. We chart the challenges, report the reversals and celebrate the successes.”

Image: Stewart McIntosh, editor Compropscotland.com

In an off-market deal, James Barr’s investment team has sold a multi let office within Edinburgh’s old town.

Crichton House on Crichton Close is located in Holyrood, close to the Scottish Parliament building, BBC Scotland and Scotsman Publications.  

Originally developed as part of the wider Holyrood North Project, the building extends to 9,461 sq ft and is let on a series of short term leases.  Tenants include The Scottish Building Employers Federation, The Association of British Pharmaceuticals Society and Ledingham Chalmers LLP.

Capital & Regional has sold Falkirk's Howgate retail centre to Rockspring Investment Managers as part of a £135.9m portfolio of four properties.
The 'Mall Fund' portfolio also includes the Eastgate Shopping Centre in Gloucester, the Marlands Shopping Centre in Southampton and the Liberty Shopping Centre in Romford.

The properties were valued at £128.1m at the end of June, reflecting a 6 per cent uplift in the sale price. In July, Capital & Regional and Aviva agreed to restructure £1 billion of loans held by The Mall Fund, aiming to cut the fund's loan-to-value ratio from 80 per cent to 65 per cent in 2014.

A client of DTZ Investment Management, represented by Knight Frank, has bought 133-137 Buchanan Street, Glasgow, for £21.2 million - reflecting a net initial yield of 5.5 per cent.  The 35,197 sq ft building, previously owned by LNC Property Group, occupies an entire block on a prime retail location at the corner of Buchanan Street and St Vincent Street.

The premises include retail space at ground floor and basement level, with office accommodation on the upper floors.  Tenants include Phones 4U, TM Lewin, The Post Office, and a former HBOS unit, currently being assigned to Jack Wills at an enhanced rent.

Aviva Investors Pensions has agreed a new lease with Tayburn Holdings on Block C, Kittle Yards, Causewayside, Edinburgh. The suite extends to 6,148 sq ft (571.18 sq m) of office space on the first and second floors and has been let for a further 10 years to Tayburn at a rental of £92,220 per annum.
 

Sally Lindsay of letting agents SL Property Consultants said: "Aviva worked closely with Tayburn to structure a deal that worked with their business needs. Kittle Yards has office suites available from 780 sq ft to 3,000 sq ft, with car parking."
 

The flagging office market in the west of Edinburgh has been boosted by news that Business Stream is to relocate to Edinburgh Park's flagship building, 7 Lochside View.
New Edinburgh Limited (NEL), Edinburgh Park's developer, has struck a 10-year deal with Business Stream to let the 20,692 sq ft first floor at 7 Lochside View at a reported rental of £18.50 per sq ft. Pamela Grant, development director at NEL, said: "This is an important deal for Edinburgh Park and we are pleased to welcome such a high profile tenant to 7 Lochside View."
 

Cameron Stott, director at Jones Lang LaSalle, who acted for NEL said: "Securing Business Stream is a significant coup for both Edinburgh Park and the west Edinburgh office market as a whole, particularly in the current climate. West Edinburgh continues to be a popular location for businesses looking to relocate, benefitting from comparatively lower rates to offices in the city centre."

Although take-up of Grade A office space in central Glasgow rose to an encouraging 153,000 sq ft in the second quarter of this year, total lettings for 2010 are forecast to be lower than 2009's, according to DTZ's latest 'Property Times' report.

The lower level of lettings is a result of the significant number of exceptionally large Grade A deals that went through in the third quarter of 2009,

City centre availability fell back in Q2, particularly Grade A, following the increase in take-up. Demand was driven by the financial and legal sectors, with Maclay Murray & Spens and Ernst & Young taking 38,000 sq ft and 21,000 sq ft respectively in HF Developments' newly completed G1 building in George Square.

Ardgowan Hospice is the latest tenant to sign up for Greenock's Oak Mall Shopping Centre - taking Unit 15, Hamilton Way, on a new three year lease at a rental of £30,000 per annum.

The 1,310 sq ft (121/69 sq m) unit is the Hospice's sixth shop - it has a further two stores in Greenock, as well as other outlets in Gourock, Port Glasgow and Kilmacolm.

London and Cambridge Properties has found tenants for two units at its Forbes Court on Middlefield Industrial Estate, Falkirk.

The deals comprised the letting of the 5584 sq ft Unit 12 to Seed Source Limited on a ten year lease at £5 per square foot, as well as the 5317 sq ft Unit - also at £5 per sq ft, on a five year lease to C and C Solutions.

The joint letting agents were DM Hall and Ryden. Mike McIntyre DM Hall said: "The landlord has carried out a high-quality refurbishment of Forbes Court and, reflecting this, the rental rates are very competitive.

Nike Factory Store is the latest addition to Gretna Gateway's tenant line-up.

Nike Factory Store is taking 8,000 sq ft of retail space. Considerable reconfiguration work will be undertaken to create the new unit before it is ready to hand over to Nike Factory Store.

Peter Gardner, general manager at Gretna Gateway, said: "We're delighted that Nike Factory Store has decided to locate its latest UK outlet store at Gretna Gateway. It is one of the world's most recognized brands and will bring more jobs for the area and help to attract additional shoppers to the Outlet Village, which will in turn benefit all of our other stores as well as the local and regional economies." 

CB Richard Ellis (Scotland) has completed a letting at 169 Sauchiehall Street, Glasgow, on behalf of London-based property investment company, Winston Group.
 

Footwear retailer Barratts has renewed its lease on the entire unit 2800 sq ft two-floor unit, on a new ten year lease at a rental of £137,500 a year. CBRE recently sold 169 Sauchiehall Street for £1.3m on behalf of Deloitte to Winston Group and was retained as letting agent for the property.
 

Kevin Sims, retail director, CB Richard Ellis (Scotland), said:  "This letting confirms continued demand for Sauchiehall Street for well positioned units at sustainable rental levels."
 

CB Richard Ellis (Scotland) represented Winston Group; Barratts was unrepresented.

www.cbre.com

On behalf of Royal London Mutual Society, Ryden has let unit 4A Seafield Trade Park, Seafield Road, Edinburgh, to Screwfix Direct Limited.
 

Screwfix has taken the newly refurbished 6,426 sq ft unit on a 10-year FRI lease at £51,408 per annum. The direct and online supplier of trade tools and accessories is relocating from existing premises at Seafield Road.
 

Alan Herriot of Ryden said:  "My client recently acquired the premises at Seafield Trade Park and subsequently undertook an extensive refurbishment and sub-division to provide three modern trade counter/warehouse units.  Following this letting, only one unit of 6,490 sq ft now remains."

www.ryden.co.uk

Confirming the current healthy demand for good quality office space in Glasgow city centre, Gee & Co has let the fifth floor at 135 Buchanan Street to Thornton Hope Limited.

The debt recovery and credit management specialists are relocating from offices in West George Street, following a search that identified 135 Buchanan Street as an ideal office for their business.

Thornton Hope has agreed a five year lease for the 1923 sq ft fifth floor at a rent of £25,000 per annum.

Stephen McKenna of Gee & Co said: "As a result of this letting, 135 Buchanan Street is now fully let.  Gee & Co completed this in just over six months of our appointment and we are delighted to have assisted the landlord, LNC Properties, with the agency of the building."

Specsavers is opening a new optical superstore on Inverness High Street.

The company has agreed a rent of £95,000 a year for the 3,972 sq ft (368.99 sq m) unit at 44 High Street. The lease is for 10 years and is subject to a rent review on the fifth anniversary.

Cushman & Wakefield acted for owners Halifax Pension Nominees Ltd, while Culverwell acted for Specsavers.

www.cushmanwakefield.com
www.culverwell.co.uk  

Ryden has sealed two Edinburgh retail deals in quick succession. For landlord Peatallan, Ryden sold 8 Ormiston Terrace to a private purchaser (unrepresented) for £150,000.  The 870 sq ft property will trade as a Chinese herbal medicine shop.

On behalf of landlord Lightthink Ltd, Ryden signed up Make-up by Chris (also unrepresented) at 38-39 West Preston Street. The 353 sq ft retail unit has been taken on a five-year FRI lease at a stepped rental from £7,500 to £9,000 per annum. The beauty salon is run by make-up artist Christine Forster who said that the new location will enable her to provide specialist advice, treatments and products to her clients. The new salon is now open.

Will Biggart of Ryden said: "Both of these deals show that there is still appetite at the smaller end of the market in Edinburgh, particularly for new starts and specialist occupiers."

www.ryden.co.uk

In a change in the law that could have major implications for commercial property deals, from 6 April 2011 all land agreements in Scotland will become subject to the UK competition rules prohibiting anti-competitive agreements ("the Chapter 1 Prohibition"). What's more, the prohibition will apply to agreements whether they were entered into before or after this date. David Flint of legal firm MacRoberts explains:

A land agreement is essentially any agreement between undertakings which creates, alters, transfers or terminates an interest in land, or an agreement to enter into such an agreement. Until now, such agreements have been specifically exempt from the Chapter 1 Prohibition, but the decision has been taken to revoke this exemption with effect from April of next year.

In effect, parties to a land agreement will now need to consider whether the agreement (or any part of it) prevents, restricts or distorts competition in the UK.

On behalf of a private investor client, Ryden has purchased the long leasehold interest in a prime air freight distribution unit at 2 Campsie Drive, Air Cargo Terminal, Glasgow International Airport. The sale price was just over £1.1m, reflecting a net initial yield of 7.92%.

The property is a 16,238 sq ft modern distribution unit, let to DHL Global Forwarding (UK) Ltd on FRI terms, expiring March 2015, with a tenant's option to extend the lease for a period of five years from the expiry date.  The net passing rent is £92,385 per annum.

Jones Lang Lasalle and Acuitus sold the property on behalf of The Airport Industrial Property Unit Trust, a client of Scottish Widows Investment Partnership.

www.@ryden.co.uk
 

Direct marketing specialist, Bridge View Consultants, is the latest tenant to move to Alba Business Pavilions in Livingston. The company struck a five year deal with landlord Miller Developments to take 3,485 sq ft at a rate of £14.50 per sq ft.

Bridge View Consultants moves into pavilion 1b, one of eight office pavilions at the park. They join the Jane Moore Trust and Compass Contract Services.
 

CB Richard Ellis (Scotland) has acquired Unit 6, Regent Centre, Kirkintilloch on behalf of Poundland.

Now Europe's largest single price discount retailer, Poundland has leased approximately 15,000 sq ft arranged over two floors. The property has been acquired at a rental of £95,000 per annum on a new ten year lease.

Kevin Sims, retail director, CB Richard Ellis (Scotland), said:  "This unit will allow Poundland to trade from one of the most prominent shops in Kirkintilloch. A former Woolworths store, this follows on from Poundland's acquisitions of former Woolworths stores elsewhere in Scotland that are trading well."

Demand from overseas investors for UK commercial property is driving recovery in the investment sector, according to Lambert Smith Hampton (LSH).

The property consultancy's latest market research reveals 'the highest level of activity in two years', based on a UK-wide investment turnover of £8.3bn in the second quarter of this year. Some 15 of those deals were worth more than £100m, accounting for £3bn of the total turnover.

Although overseas investors have replaced UK institutions as the most active investors in UK commercial property, the story in Scotland is different - with institutional investors still the dominant buyers.  This is reflected in ING's acquisition of 180 West George Street Glasgow for £17.5m and SWIPP's purchase of 145 St Vincent Street for £11.8m. Both purchases reflect a net initial yield of 6.6%.
A "small recovery" has been detected in the lending market, illustrated by the return of UK REITs and the quoted property sector.

Bill Binnie, head of investment for LSH in Scotland, said: "After a period of increased activity at the start of 2010, which has resulted in a swift adjustment in values, the market is expected to go through a period of consolidation as it finds its new level. There have been significant changes over the past 12 months.

Tsunami Axis, the commercial interiors specialist, has opened its first office in Scotland - taking a new lease at 6 Hope Street, Edinburgh from JM Edwardson.

The ground and first floor office suite extends to 1,838 sq ft (170.20 sq m) and has been let for 10 years at a rental of £28,950 per annum, subject to a tenant break at year 5.

JM Edwardson was represented by Ryden; Tsunami Axis by Eric Young & Co.

www.tsunami-axis.co.uk
www.eyco.co.uk
www.ryden.co.uk

Banco Santander has bought 318 Royal Bank of Scotland branches in a £1.65 billion deal - a figure which RBS says represents a premium of £350 million the value of the assets.

The sale includes seven NatWest branches in Scotland and 311 RBS-branded branches in England and Wales.

The move reinforces the Spanish bank's competitive clout in the UK market, adding to its current Abbey, Alliance & Leicester and Bradford & Bingley brands.

After being bailed out last year by the UK Government, RBS was instructed by the European Commission to sell off the branches to safeguard competition concerns. Santander first submitted an offer to RBS in June of this year, completion is expected by December 2011.

Ramsdens Financial Ltd has taken a new lease at 110A Dalry Road, Edinburgh from Peatallan plc.

The unit comprises 1,573 sq ft (146.13 sq m) of ground floor sales and has been let for 10 years at a rental of £18,250 per annum.

Peatallan plc was represented by Ryden LLP; Ramsdens Financial Ltd was represented by Eric Young & Co.

www.eyco.co.uk

Russell Jones & Walker has assigned its lease at 43 Melville Street, Edinburgh, to Dunedin Property.

As part of the agreement the landlord agreed to vary the existing lease to incorporate a new 5 year term with a mutual break at year 3 at a rental of £15,411 per annum.  The office suite extends to 938 sq ft (87.15 sq m).

Russell Jones & Walker, represented by Eric Young & Co, relocated to Centrum House, 108-114 Dundas Street last year.

www.eyco.co.uk

Acting on behalf of Buccleuch Property, CKD Galbraith has let the last remaining office suites and industrial unit at Norton Park near Easter Road, Edinburgh.

Ground and first floor office suites totalling 1,974 sq ft have been let to the charity Fairbridge in Scotland. The last remaining industrial unit, comprising 1,297 sq ft, has been let to a private occupier at £9,000 per annum.      

Ian Forbes of CKD Galbraith said: "Securing the letting to Fairbridge in Scotland is particularly pleasing, as all parties worked extremely hard to agree a mutually beneficial deal."

Poundland, Europe's largest single price discount retailer, has leased a 15,000 sq ft former Woolworths store in Kirkintilloch, East Dunbartonshire. The two-storey property at Unit 6 in the town's Regent Centre, has extensive frontage to the Cowgate. The annual rent is £95,000 on a new ten year lease.

Freight management company Geodis Wilson has become the second occupier at Westpoint Business Park, Paisley. The company has agreed a 10-year
lease on a 2,616 sq ft first-floor office suite at a cost of £15.50 per sq ft.

Richard Martin, general manager at Geodis Wilson, said: "It was important to select premises that reflect our corporate values and image as well as meeting our location requirements - Westpoint is the ideal choice to meet those criteria."

Stewart Milne Developments has sold a 16 acres site in Bucksburn, Aberdeen, to mechanical equipment supplier Enermech for £4 million.

EnerMech, who already lease part of the Howes Road property, has purchased the entire 16 acres which includes 68,000 sq ft of office space, industrial storage facilities, a 38,000 sq ft workshop and a large yard.

Acting on behalf of West Coast Estates, Knight Frank has completed the record letting of a new unit at Middleton Park in Bridge of Don, Aberdeen.

Unit 7 on the park has been let to Baguette Express on a 10 year lease at a rent of £23,000 per annum - at just over £40 per sq ft the deal represents a record rate for a neighbourhood retail unit in the Granite City.

Eric Shearer, partner at Knight Frank, said: "Since West Coast Estates acquired this parade over two years ago they have breathed new life into the scheme via active asset management, improving the appearance of the shops and changing the mix of tenants. Not only are occupiers benefiting from improved footfall, but the owners have seen rents improve significantly - as evidenced by this recent letting."

Poundland has taken the former Woolworths store on Glasgow's Argyle Street on a new 10-year lease, at £375,000 per annum.

The property, which comprises 20,000 sq ft of space over the ground and basement floors, will be redeveloped to create a suitable space for Poundland and will be ready for occupation in September this year.

Poundland was represented by CB Richard Ellis (Scotland), while Cushman and Wakefield acted on behalf of landlord Redevco.

Kevin Sims, retail director, CB Richard Ellis (Scotland), said:  "This will be the largest Poundland store in Scotland and a new flagship store for Glasgow.  It is an important acquisition and reinforces Poundland's position as Scotland's leading single price operator."

A Sainsbury’s supermarket at 135-145 George Street, Glasgow, has changed hands for £865,000.  Located close to Strathclyde University, the unit was bought by a private investor, represented by Ryden. The price paid reflects a net initial yield of 5.1%. 

The 3,563 sq ft property is let to Sainsbury’s until January 2025, at an initial passing rent of £46,500 a year with geared RPI uplifts at the five yearly rent reviews.

Savills acted for the private seller.

On behalf of a private landlord, Ryden has sold a prominent retail unit at 4-6 North Bank Street on the Mound in Edinburgh to a private investor. The 2,077 sq ft unit has been sold for a figure in the region of £500,000.

Margaret Milne, owner of Just Scottish, which previously occupied the premises, said: "I have been pleased with the way in which the sale has been handled with no disruption to my business. After trading successfully for many years as a gallery and a gift shop, I look forward to moving my operation online."

Will Biggart, surveyor at Ryden, said: "We are delighted with the sale price that we achieved for our client, and this, coupled with other recent sales in the area, shows that the historic part of the city, with its high influx of tourists throughout the year, continues to appeal."

In one of the largest multi-let industrial transactions Aberdeen has seen, Andrew Johnson’s Chancerygate, advised by Ryden and Biggart Baillie, has sold a portfolio of three industrial estates in the city for £10.427 million to clients of CBRE Investors, represented by King Sturge and McGrigors.  The sale price represents a yield of 8.45 per cent.
Chancerygate acquired the portfolio in 2008.  It comprises Forties Industrial Estate Centre, Denmore Industrial Estate and Portlethen Industrial Estate.  Tenants include TNT, Weatherseal, Nationwide Access and Greco Subsea.
Ken Shaw, partner at Ryden, said:  “The portfolio has undergone a proactive and successful asset management programme which has added significant value to the assets for our client.
“This first deal of its of its kind for nearly two years. The market has been tricky for this type of stock during the recession although the sale provides evidence of an improvement in pricing and a welcome return by funds into the market.”