FOR SALEPRIME INDUSTRIAL INVESTMENT

• Industrial and office facility in an established estate.

• Let to Aker Offshore Partner Ltd.

• Rental income of £112,000 per annum, with reversionary potential.

• Offers over £1,300,000, exclusive of VAT.

• Net initial yield of 8.16%.

UNIT BBADENTOY AVENUEBADENTOY INDUSTRIAL ESTATEPORTLETHENABERDEENAB12 4YB

25 Albyn Place, ABERDEEN AB10 1YLTel: 01224 588866 Fax: 01224 589669

Edinburgh 0131 225 6612

Glasgow0141 204 3838

Aberdeen 01224 588866

Leeds0113 243 6777

Dundee01382 227900

ABERDEENAberdeen is Scotland’s third largest city with a population of approximately 225,000 and a regional catchment population of over 500,000. It is the administrative capital of the North East of Scotland and benefits from two universities, an expanding international harbour and airport, seven major research institutes, together with world renowned food, fisheries and agricultural research establishments. The city has strong communication links with the rest of Scotland, the UK and Europe, via road, rail, sea and air. Located 120 miles north of Edinburgh, Aberdeen is one of the UK’s biggest success stories. As internationally recognised global centre of excellence in the energy industry, the city and the surrounding region is a key engine of the Scottish and UK economies. Many of the world’s leading oil producing companies have substantial regional HQ’s in the city. Examples include BP, Shell, Total, Chevron, Conoco Philips and Nexen. These multinationals are supported by many oil service companies with a local presence in the city, including Wood Group PSN, Halliburton and Schlumberger.

In recent years the city has outperformed the rest of Scotland in terms of economic growth, productivity and business birth rates. Numerous surveys have rated Aberdeen as having the best quality of life in the country. Whilst the recent fall in the oil price has reduced business activity during the last year the city still has much to look forward to. Construction work on the long awaiting bypass road is well underway and is scheduled for completion by the end of 2017. Similarly, a multimillion pound expansion of Aberdeen International Airport is underway which will absorb the increased passenger numbers and international flights. Finally, the City Council have a live Masterplan for a £2.9bn regeneration of the city centre over the next 20 years.

LOCATIONBadentoy Park is situated approximately 6 miles south of Aberdeen City Centre adjacent to the commuter town of Portlethen.

With development at Badentoy largely taking place during the 1990s and 2000s, Badentoy Park is one of the most modern industrial estates in the Aberdeen area. The plentiful land supply available within the Park at that time attracted companies seeking to relocate to more modern facilities with the capability of providing large yard areas for external storage. Today Badentoy comprises a mix of modern office and industrial properties and is home to several multi-

national organisations, including; Schlumberger, Ramco, National Oilwell Varco, Chubb, Hunting and Cameron.

Badentoy Park presently extends to 150 acres and has had a consistently low vacancy rate. To meet the strong demand, construction work has commenced on a 40 acre extension to the Park, with lettings already in place to Schlumberger, KCA Deutag and Geopost.

Badentoy can be reached by car from Aberdeen City Centre in around 15 minutes and is also accessible by public transport, being on a bus route. Portlethen village has a rail station which connects with Aberdeen. Accessibility to all parts of Aberdeen will be greatly improved upon the completion of the Western Peripheral Route, scheduled for 2017.

The property is located on the north-west side of Badentoy Avenue, close to its north-most junction with Badentoy Crescent. Access is taken from a private roadway.

DESCRIPTIONThe property comprises a detached modern steel portal frame workshop unit with internal offices and external yard, built on a site extending to approximately 0.45 hectares (1.12 acres).

The building is of steel portal frame construction with a combination of blockwork and insulated metal sheet clad walls, under a metal decked roof. Internally, the building has been divided to form a single storey office pod at the front with a workshop to the rear. Above the offices there is a mezzanine floor used for storage purposes.

The offices provide a mix of open plan and cellular space and are finished to a good standard with carpeted floors, plaster and painted walls and a suspended tiled ceiling incorporating fluorescent lighting. Gas fired central heating is provided by radiators. The workshop space benefits from a 15 tonne overhead gantry crane and 5 supplementary jib cranes (the jib cranes are assumed to be tenant’s fixtures). Lighting is provided by high level sodium fitments. The internal wall-head height is estimated to be approx 8.13m. Vehicular access to the building is provided by two electrically operated roller shutter doors opening onto the concrete yard. The yard is fenced and provides space for external storage in addition to servicing.

The site has generous parking for 25 cars.

ACCOMMODATIONA table outlining our estimate of the approximate gross internal floor areas is provided below.

Description Sq m Sq ft

Workshop 789.32 8,496

Offices 153.09 1,648

Mezzanine 153.09 1,648

TOTAL 1,095.50 11,792

Concrete Yard (gross) 1,819.31 19,583

TENURE The property is held on a Heritable title, equivalent of English Freehold.

TENANCY The property is let on FRI terms from 3rd April 2006 until 30th April 2021 to Aker Offshore Partner Ltd. The rent passing is £112,000 per annum, subject to a final review at 27th April 2018.

Latent and inherent defects relating to the design and construction of the property are excluded from the tenant’s repairing obligations.

Ryden is a limited liability partnership registered in ScotlandMessrs Ryden for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, 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 Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property.

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MRVIn our opinion the rent has potential to increase in the future based on the MRV calculation below:

Description Floor area Rate (PSF) Rent

Workshop 8,496 £8.25 £70,092

Offices 1,648 £13.50 £22,248

Mezzanine 1,648 £3.00 £4,944

Concrete Yard 19,583 £1.00 £19,583

£116,867

Note: The lease outlines specific floor areas to be assumed at rent review and a copy is available upon request.

COVENANT INFORMATIONAker Offshore Partner Ltd is a subsidiary company of Aker Solutions Holding AS, the substantial Norwegian oil services company. Their web address is www.akersolutions.com.

Aker Offshore Partner Ltd was incorporated in 1980 and the principal business is the provision of management, engineering design, construction, maintenance and decommissioning services to clients in the offshore oil and gas industry.

The company recorded significantly improved accounts for the year ended 31 December 2014 with a turnover of £193.417m, pre-tax profits of £5.879m and a Net Worth of £7.875m. Their D&B rating is 3A1, representing a minimum risk of business failure.

ENERGY PERFORMANCE CERTIFICATEThe property has an Energy Performance Rating of F.

INVESTMENT SALES EVIDENCEThere have been numerous investment sales at Badentoy Park in recent years demonstrating the appeal of the location. We have listed some relevant transactions in the table below:

Date Property Purchaser Price NIY Tenants Comments

Nov 15 Badentoy North ABF Pension Fund

£5.40m 5.97% KCA Deutag Forward commitment sale. New 20 year lease with guaranteed rental uplifts.

Dec 14 Badentoy Crescent Private Investor £2.35m 6.83% SPM Ltd 3 years unexpired to tenant break option

Jul 14 Unit Z3B Badentoy Crescent, Badentoy Park

Friends First £2.875m 6.45% Downhole Products

New 15 year lease with guaranteed rental uplifts.

Feb 14 Badentoy Park RLAM £7.47m 6.00% Smith International

13 year lease with guaranteed rental uplifts. Highly reversionary.

Feb 14 Badentoy North LaSalle IM £14.00m 6.71% Schlumberger Forward commitment sale. 13 year lease with guaranteed rental uplifts.

Feb 14 Bruce Facility, Badentoy Park

CCLA £9.70m 7.02% Schlumberger 5.5 years unexpired term.

Jan 14 26 Badentoy Crescent, Badentoy Park

Private Investor £900,000 7.35% SPM Ltd 2 years unexpired to tenant break option

PRICING AND YIELD PROFILE We are instructed to seek offers in excess of £1,300,000 per annum, reflecting an attractive net initial yield of 8.16%, after deduction of purchaser’s costs including LBTT.

FURTHER INFORMATION For further information or to arrange a viewing, please contact the sole agent:

Ken Shaw

E Mail: ken.shaw@ryden.co.ukTel: 01224 569664

Ryden 25 Albyn PlaceAberdeen AB10 1YL

Tel: 01224 588866Fax: 01224 589669

January 2016