ABERCROMBIE COURT

FOR SALE
HEADQUARTERS OFFICE INVESTMENT
LET TO FAIRFIELD ENERGY LIMITED
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

INVESTMENT SUMMARY
• Unit 19, Abercrombie Court, Westhill, Aberdeen
• Headquarters Grade A office building providing 25,454 sq ft
and 98 car spaces
• New 10 year lease without breaks from 1/3/2012
• Let to Fairfield Energy Limited
• Initial rental income of £445,445 per annum
• Rent of £17.50 sq ft
• Offers sought in excess of £4,800,000 exclusive of VAT.
• Net initial yield of 8.75%, assuming purchaser’s costs of 5.8%
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

LOCATION
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

ABERDEEN
Aberdeen is recognised as a global centre of excellence in the energy sector and is a thriving cosmopolitan city
with a diverse international economy. The city has a population of approximately 210,000 with a catchment
population of approximately 500,000. Aberdeen is the administrative and educational centre for the north east of
Scotland and is home to Aberdeen City Council, Aberdeenshire Council, Aberdeen University and Robert Gordon
University. There are more than 30,000 students in Aberdeen and world renowned research establishments in
medicine, agriculture, food and fisheries, creating a highly qualified workforce.
The city is the European hub for oil and gas exploration and production in the North Sea however many companies
run international operations from Aberdeen and it is estimated that 50% of activity involves the global export
market.
Investment in the energy sector confirms that Aberdeen has a very exciting long term future and the world’s
leading energy companies and service companies are making huge committments:
• In partnership, BP, Shell, Chevron and Conoco have recently announced almost £10 Billion of investment,
including the £4.5 Billion Claire Ridge project to the west of Shetland, where they plan to extend production
until 2050.
• Over the next few years BP will be bringing on stream more new major project developments in the UK than
it has ever done over a comparable period.
• Statoil, the Norwegian exploration company is progressing their £6 Billion investment in the Mariner and
Bressay fields and will seek to establish a new HQ in Aberdeen to run these projects.
• KNOC, the Korean national oil corporation, bought the independent Dana Petroleum for £1.8 Billion,
highlighting the importance of security of supply
• Apache’s $1.75 Billion acquisition from ExxonMobil accelerated their growth in Aberdeen.
Aberdeen also has a tremendous opportunity to capitalise on the evolution of the renewable sector. The city has a
compelling combination of expertise in supply chain management, technology and engineering and world class
companies in Aberdeen such as Wood Group, Petrofac and Technip have already established subsidiaries in the
renewables sector.
Aberdeen has a diverse economy and the thriving service sector including Barclays, HSBC, RBS, Lloyds Banking
Group, KPMG, Deloitte, PWC, Ernst and Young, Brodies, McGrigors and Maclay Murray and Spens.
Aberdeen Asset Management and First Group have global HQ’s in Aberdeen and the city has 28 of Scotland’s top
100 companies, despite having only 4% of the population.
Unemployment in Aberdeen is currently 2.2%, compated to 8.5% in Scotland and 8.3% in the UK.
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

WESTHILL
Westhill is one of Aberdeen’s prime business locations and satellite towns, approximately 6 miles west
of the city centre. The town has grown rapidly in recent years due to its location, accessibility and staff
amenity. Major occupiers include the following :
• Subsea 7
• Technip
• Schlumberger
• TAQA
• Expro
• Scottish Water
• Kongsberg
• Stewart Milne Group
• Hallin Marine
Retail provision is excellent with Marks and Spencers, Tesco and Costco all having stores in Westhill.
Aberdeen’s proposed Western Peripheral Route is scheduled to commence in 2012 and will pass
between Aberdeen and Westhill. This will have a significant impact on accessibility to all parts of the
city.
Abercrombie Court
Gladman Developments is due to complete the entire development of Abercrombie Court in Spring
this year. To date 136,000 sq ft has been built in 37 units comprising self contained offices ranging from
2-25,000 sq ft. 85% of the development is occupied.
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

PROPOSED ABERDEEN WESTERN
PERIPHERAL ROUTE
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

WESTHILL
29
30
31
32
A9144 ABERDEEN
1
44/45
PHASE 2
2
28
42/43
27
41 40
39
17 16
20 19
15 14
26
18
46
25
11
36
13 12
24 23
10
3
22 21
6
4
37
5
35
7
38
7
33
8
34
9
B9119
1 Subsea 7
11 Abermed
22 Derrick Offshore
35 Optimus
2 TAQA The Abu Dhabi National
Energy Corporation
3 Blue Sky Business Space
4 Seabrokers
5 TAQA The Abu Dhabi National
Energy Corporation
12 G5 Technologies
13 Jee Ltd
14 Ultra Electronics Ltd
15 JAS Forwarding (UK) Ltd
16 Pangeo Sub Sea Ltd
23 Babcock
24 Anixter
25 Konsberg Maritime Ltd
26 NCS
27 Costco
28 Technip UK Ltd
36 Fairfield
37 Kongsberg
38 TAQA Multi Storey
39 Northern Marine Management
40 Sharecats Solutions Ltd
41 Aberdeen Housing Partnership
6 TAQA The Abu Dhabi National
Energy Corporation
7 Technip UK Ltd
8 M I Drilling
9 CIS
17 Rignet
18 Abercrombie Dental Practice
19 Seahold Ltd
20 Awilco Drilling Ltd
21 Mods Management
29 Schlumberger
30 Premier Inn
31 Scottish Water
32 Tesco
33 Healthcentre
34 Petrol Filling Station
42 IT HotDesk
43 ATV Engineering Ltd
44 Cala Properties Ltd
45 PlanIT Systems
46 GSP Offshore
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

SITE PLAN - PHASE I & PHASE II
G25K
Unit 19
PHASE TWO
PHASE ONE
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

ABERCROMBIE COURT - PHASE I
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

ABERCROMBIE COURT
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

MARKET COMMENTARY
The Aberdeen office market is quite different to other major cities in the UK. The city centre is compact
and the majority of large office occupiers have always located in out of town locations. Demand for
out of town offices is growing strongly in Aberdeen and the growth of Westhill is testimony to that.
The development of PrimeFour Business Park at Kingswells, on the main road between Westhill and
Aberdeen, will re-inforce the critical mass of occupiers to the west of the city. Subject to planning,
PrimeFour has secured pre-lets totalling 300,000 sq ft of offices to Apache, Nexen and Transocean.
These pre-lets follow the success of IQ in 2011 , where the whole 125,000 sq ft was let on completion
to Centrica and Wood Group.
Prime rents in Aberdeen city centre have risen consistently from £18 sq ft in 2002 to a new Scottish
record of £31.50 sq ft, secured for the pre-let of 13 Queens Road to McGrigors.
Given the severe imbalance between supply and demand, there is less than 20,000 sq ft of grade A
accommodation available in the city, we expect rental growth prospects to be strong.
Recent office investors in Aberdeen include Aerium, Rockspring, CBRE Investors and Orchard Street.
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

SPECIFICATION
The building provides Grade A accommodation over 3 floors together with 98 car spaces:
25,454 sq ft ( 2,365.0 sq. m.)
VRV comfort cooling
Full access raised floors
Passenger lift
WC facilities on each floor
Suspended ceilings with recessed lighting
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

TENURE / TENANCY
Tenure
Heritable Interest (Scottish equivalent of English Freehold )
Tenancy
The principal lease terms are as follows :
Tenant – Fairfield Energy Limited
Lease – Full Repairing and Insuring for a term of 10 years from 1/3/2012.
Initial Rent - £445,445 per annum.
Analysis - £17.50 sq ft
Rent Review – 1/3/2017
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

COVENANT
Fairfield Energy Limited was established in September 2005 with major funding from a syndicate
of North American and European private equity investors, led by Warburg Pincus. The company
started with a $200 Million line of equity, with investors adding a further $200 Million in 2009
and $150 Million in 2011.
The company has interests in a total of 24 blocks across the UK Continental Shelf and is specifically
a UK focused independent. Initially Fairfield concentrated on the appraisal, development and
redevelopment of known oil and gas reserves however this approach is being modified with an
enhanced exploration approach.
For the year ending 31/12/2010 the company reported revenue of $199.3 Million, an operating
profit of $20.24 Million and a loss after tax of $16.1 Million.
Further information on the tenant is available on www.fairfield-energy.com.
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

CAPITAL ALLOWANCES
AND PRICING
Capital Allowances
Unclaimed capital allowances are available for the benefit of a purchaser. Further information is
available on request.
Pricing and Yield Profile
Offers are sought in excess of £4.8 Million, exclusive of VAT. This reflects a net initial yield of
8.75% after purchaser’s costs of 5.8%.
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN

CONTACT
AGENT
For further information please contact the sole agent;
David MacLeod
FG Burnett
33 Albyn Place
ABERDEEN
AB10 1UL
T: 01224 597 527
E: dmacl@fgburnett.co.uk
ABERCROMBIE COURT
ARNHALL BUSINESS PARK | WESTHILL | ABERDEEN