DENMORE PLACE, BRIDGE OF DON,ABERDEEN

HIGH YIELDING PRIME INDUSTRIAL INVESTMENT

ON THE INSTRUCTIONS OF KNIGHT PROPERTY GROUP

ABER

DEEN

1

DENMORE PLACE, BRIDGE OF DON,ABERDEEN12

INVESTMENT SUMMARY

Opportunity to purchase a prime, industrial investment situated in the established commercial location of Bridge of Don, Aberdeen

The property comprises a modern industrial facility extending to 11,814 sq ft together with secure yard and associated parking

Let to Fugro GB (North) Marine Ltd (D&B Rating 4A1) from 1st October 2018 until 30 September 2028 subject to a break option on 20th June 2024.

Current passing rent of £130,000 per annum

The lease incorporates provision of an open market rent review due on 20th June 2024

Heritable interest (Scottish equivalent of English Freehold)

Offers in excess of £1,500,000 (One Million Five Hundred Thousand Pounds Sterling) are sought for our client’s heritable interest, subject to contract and exclusive of VAT.

A purchase at this level would provide a net initial yield of 8.17%, after purchaser’s costs at 6.03%.IN

VEST

MEN

TSU

MM

ARY

Photo taken prior to Fugro’s occupation.

DENMORE PLACE, BRIDGE OF DON,ABERDEEN13

ABERDEEN

Although Aberdeen is internationally important as a centre of expertise in oil and gas exploration and associated engineering firms, the city is the main administrative and financial centre for Aberdeen City and Shire, and benefits from a diverse economy. Aberdeen is home to a number of major international businesses including First Group and Aberdeen Standard Investments, as well as a strong service sector that includes companies such as HSBC, Barclays, RBS, KPMG, Deloitte, PwC and Ernst & Young.

Home to Aberdeen and Robert Gordon Universities and a variety of world renowned public research establishments, Aberdeen has a strong academic reputation with an enrolled student population of approximately 50,000. The University of Aberdeen is the fifth-oldest university in the United Kingdom, with a community of over 120 nationalities.

Aberdeen is Scotland’s third largest city, with a population of circa 229,000 people and a regional catchment of approximately 500,000 people. It is anticipated in the next 25 years that the city’s population will increase by approximately 24%, rising to circa 285,000

(Source: National Records of Scotland 2017).

RDEE

NAB

E

DENMORE PLACE, BRIDGE OF DON,ABERDEEN14

ROADAberdeen is easily connected to the rest of Scotland via the network of motorways. The A96 runs North West to Inverness with a travel time of 2 hours 45 minutes. The A90 south connects to Dundee, Perth (following on the M90), Edinburgh and Glasgow.

The AWPR is the new city bypass that has been promoted by and funded by the Scottish Government and the City of Aberdeen Council. It is one of the most important infrastructure projects taking place in the north east of Scotland and will have a positive impact on the economy and environment. The first phases of this project are complete, with some sections of the road now open for business and the last phases due to be complete late Autumn 2018. Congestion within the city centre will be eased and journey times will fall throughout the area. In particular, journey times between Westhill and Aberdeen, the Airport, Altens and the A90 trunk road south will be significantly reduced.

TRANSPORTABERDEEN TRANSPORT CONNECTIONS

Located around 125 miles north of Edinburgh and 66 miles north of Dundee, Aberdeen benefits from an excellent communication system with transport links by road, rail, air and sea to many of the major cities in the UK.

NORTHSEA

THE PARKWAY

A 96 INVERURIE R OAD

A947 STONEYWO

OD R

OAD

ABERDEEN AIRPORT

DYCE STATION

ABERDEEN STATION

TOWARDS DUNDEE, EDINBURGH & GLASGOW

NORTH

AND

ERSON DRIVE

RIVER DEE

A944 A944

COUNTESSWELLS ROAD

B9119

B9119

A93 N DEESIDE ROAD

A96 INVERURIE ROAD

A W

PR (A

BER

DEEN WES

TERN

PER

IPHE

RAL

ROU

TE)

A90

A90

A90

A90

ABERDEEN

THE PROPERTY

DENMORE PLACE, BRIDGE OF DON,ABERDEEN15

CONNECTIONS

RAIL

Aberdeen Railway Station is situated in the city centre and is served by the main east coast rail network with connections to all the main UK destinations. Dyce Railway Station is located west of the property, less than a 15 minutes drive away.

AIR

Aberdeen Airport is located approximately 7 miles north west of the city centre and 6 miles west of the property. The airport has flights to a variety of domestic and international destinations including frequent daily services to principal UK cities and direct flights to Europe including Paris, Amsterdam and Oslo. The property is less than a 20 minute drive from the airport.

The airport is currently undergoing £20 million project to expand the airport and to accommodate the increase in passenger numbers. This is due for completion towards the end 2018.

SEA

Aberdeen has one of the busiest commercial ports in the UK and is a vital resource for the North Sea Oil and Gas industry. 4.2 million tonnes of cargo are handled to and from nearly 40 destinations and Northlink operate passenger and car ferries to Orkney & Shetland. There were over 6,700 vessels entering the port in 2017, which was the first growth since 2014. In light of this, a £330 million expansion project began in 2017 to accommodate larger vessels and improve Aberdeen’s ability to support future economic growth.

PARIS2 hours

LONDON1 hour 25 minutes

AMSTERDAM1 hour 35 minutes

BIRMINGHAM

6 hours 53 minutes7 hours

EDINBURGH

2 hours 22 minutes2 hour 48 minutes

LONDON

7 hours 9 hours 24 minutes

NEWCASTLE

4 hours 53 minutes4 hours 33 minutes GLASGOW

2 hours 34 minutes

ABERDEEN

MANCHESTER5 hours 55 minutes6 hours 20 minutes

ABERDEEN AIPORT18 minutes

SHETLAND (LERWICK) 12 hours 30 minutes

ORKNEY (KIRKWALL) 6 hours

DENMORE PLACE, BRIDGE OF DON,ABERDEEN16

SITUATION

The property occupies a prominent position on Denmore Place, being directly accessed via Denmore Road which is the main through road of the estate.

Denmore Road provides easy access to the A90 which in turn is the main arterial route from the north to the south in Eastern Scotland. The subjects are strategically located in close proximity to the Northern Section of the Aberdeen Western Peripheral Route (AWPR) which is scheduled to complete soon. This will further reinforce the location of Bridge of Don within Aberdeen’s industrial hierarchy.

Industrial and commercial occupiers have become well-established in the surrounding area, including companies such as Baker Hughes, Sparrows, Speedcast, ATR, J2 Subsea, Argosy, Semco, Air 16, Seatronics and DMC Technology.

B999

WOODSIDE ROAD

DENM

ORR

E RO

AD

D

ENM

ORR

E RO

AD

DENMORE PLACE SCOTSDOWN ROAD B997

SCOTSDOWN ROAD

JESMOND DRIVE

D

UBFORD ROAD

DU

BFO

RD R

OAD

SHIELHILL CRESCENT

GREENBRAE DRIVE

SILV

ERBURN P

LACE

BROADFO

RD RO

AD CLAYM O RE D

RIVE

CLAYMO

RE DRIVE

TERN PLACE

THE PARKWAY

A90

A90

SITUATION

THE PROPERTY

J2 Subsea

Argosy Control Engineering

Sparrows

Semco Maritime Ltd

Seatronics Ltd

ATR Lifting Solutions

Screwfix

GE Oil & Gas

Homebase

Aberdeen Ehibition & Conference Centre

Oceanscan

B&Q

Baker Hughes

2

4

5

7

6

3

8BRIDGE OF DON INDUSTRIAL ESTATE

910

11

12

13

23456789

1011121314

TO AWPR

TO ABERDEEN AIRPORT AND CITY CENTRE

1

1

14

DENMORE PLACE, BRIDGE OF DON,ABERDEEN17

DESCRIPTION

The property comprises a modern detached industrial facility with integral two storey offices, parking and secure yard. The property has recently been upgraded and benefits from the following specification.

Office:

Suspended ceilings with recessed LED lighting

Carpeted raised access flooring

Gas central heating

Kitchenette facilities on the first floor

Male, female and accessible WC facilities

2 person lift

Security alarm system.

Warehouse:

Blockwork to dado height

Two roller shutter doors

Newly screeded floor

Insulated PMS cladding

Translucent roof lights

LED strip lighting

5.5m minimum eaves

2 pedestrian exitsDESC

RIPT

ION

ESC

Photos taken prior to Fugro’s occupation.

DENMORE PLACE, BRIDGE OF DON,ABERDEEN18

ACCOMMODATION

The building has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and we estimate the gross internal areas to be as follows:

Description Area (sq ft) Area (sq m)Ground Floor Office 1,885 175.13

First Floor Office 2,080 193.19

Office Total 3,965 368.32Warehouse 7,849 729.21

Total GIA 11,814 1,097.53

The property also benefits from an external storage yard extending to approximately 744.62 sq m (8,015 sq ft).

TENURE

Heritable (Scottish equivalent of English Freehold).

ACCOMMODATION

TENURE

Photos taken prior to Fugro’s occupation.

Follow link to drone footage of the property

DENMORE PLACE, BRIDGE OF DON,ABERDEEN19

COVENANTTENANCY

The property is let in its entirety to Fugro GB (North) Marine Ltd from 1st October 2018 until 30th September 2028 with a tenant’s only break option as at 20th June 2024 incorporating a 3 months break penalty. The current passing rent is £130,000 per annum, which, by our analysis, equates to £15.00 per sq ft on the offices, £7.96 per sq ft on the warehouse and £1.00 per sq ft on the yard. The lease incorporates an upward only, open market rent review at 20th June 2024 and a schedule of condition. TENANCY

COVENANT

Established in 1962, Fugro is the world’s leading independent provider of geo-intelligence and asset integrity solutions for large constructions, infrastructure and natural resources. They employ approximately 10,000 people across 65 different countries.

As at 1st of January 2018, the majority of assets from sister companies Fugro ImpRov Limited and Fugro Subsea Services Limited were hived up into Fugro GB (North) Marine Limited.

For further information, please refer to: www.fugro.com

Fugro GB (North) Marine Ltd, has a D&B rating of 4A1 which indicates a positive net worth and minimum risk of business failure. A summary of the key figures from their last 3 years accounts is provided below:

Individual31/12/2017

in thousands

Individual31/12/2016

in thousands

Individual31/12/2015

in thousandsSales Turnover 46,799 45,118 53,144

Profit / (Loss) Before Taxes (6,383) (6,747) (3,156)

Tangible Net Worth 32,975 39,985 45,678

Net Current Assets (Liabilities) 29,976 36,669 39,559

Photos taken prior to Fugro’s occupation.

DENMORE PLACE, BRIDGE OF DON,ABERDEEN110

CONTACT

FURTHER INFORMATION

EPC

The property has an EPC ‘F’ rating.

A copy of the EPC certificate is available upon request.

VAT

VAT will be applicable to the sale of the property, which will be undertaken by way of Transfer of a Going Concern (TOGC).

PRICE

We are instructed to seek offers in excess of £1,500,000 (One Million Five Hundred Thousand Pounds Sterling) for our client’s heritable interest subject to contract and exclusive of VAT.

A purchase at this level would provide a net initial yield of 8.17%, after purchaser’s costs at 6.03%.

CONTACT

For further information or to arrange an accompanied inspection please contact:

Simon Cusiter Janey DouglasT: 0131 243 2203 T: 0131 301 6718M: +44(0)7815 135 222 M: +44(0)7734 883 046E: simon.cusiter@eu.jll.com E: janey.douglas@eu.jll.com

© Crown Copyright 2018. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659.This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:-a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract;b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise;c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken.For properties in Scotland:e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law

Copyright © Jones Lang LaSalle IP Inc. January 2019. All rights reserved.ON THE INSTRUCTIONS OF KNIGHT PROPERTY GROUP