Oil & Gas

Aberdeen commercial property investment market turns corner

More than £30 million of commercial property assets recently brought to market in Aberdeen is a sign the tide has turned in the city, according to Knight Frank.

The commercial property consultancy said the investment market in the Granite City was starting to return to rude health after a dip in activity during the Covid-19 pandemic, buoyed by sustained high oil prices.

We are seeing a lot of interest from buyers who recognise the city’s crucial role in the UK’s energy resilience.”

Nearly 223,000sq ft. of industrial and distribution space spread over 37 units at Wellheads Industrial Estate, next to Aberdeen International Airport, has been put on the market for £18.725 million.

The site comprises of a broad range of occupiers, including Schenker, Contract Solutions, Aberdeen Web and Babcock Mission Critical Services Offshore.

Business parks for sale

Meanwhile, Aberdeen Energy and Innovation Parks are being marketed by Knight Frank with a combined guide price of £15m.

The two parks – currently owned by Moorfield Group – consist of 200,000sq ft of office and warehouse space spread across 13 buildings on two campuses over more than 120 acres.

© AJL/ Colin Rennie
Aberdeen Harbour.

Recent research from Knight Frank suggested office take-up in Aberdeen was bouncing back from the lows of the pandemic and on track to exceed 400,000sq ft this year – more than double 2021’s figure of 197,000sq ft.

Euan Kelly, capital markets partner, Knight Frank Scotland, said: “A lot of quality stock is becoming available to buy in Aberdeen, with activity in the North Sea picking up on the back of the high oil price.

“Despite the well-publicised macro-economic challenges of the past year, there is more liquidity returning to the market.

“We are seeing a lot of interest from buyers who recognise the city’s crucial role in the UK’s energy resilience, both now and in the future through the shift to renewables.”

He added: “With occupier activity also on the rise again, there is a lot of opportunity in Aberdeen for investors to acquire properties at very competitive yields and boost those returns through gearing.”

© Supplied by –
Aberdeen Energy Park is on the market.

On the Moorfield Group property sale, Mr Kelly said: “Aberdeen Energy Park and Aberdeen Innovation Park are two rare assets, with a mix of offices, warehousing, and laboratory facilities.

“Combined, they offer a diverse income profile made of short and medium-term lets, supported by a core of secure long-term leases.

“The market in Aberdeen is beginning to turn a corner, following the dip in activity during the pandemic and these two assets are indicative of the quality on offer at a competitive yield.”

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