Building sold for £11.35m
City Wharf sale marks step on road to recovery
City Wharf: sale to local group
A mixed-use development in Aberdeen has changed hands in an £11.35 million deal seen as a further sign of recovery in the local market.
Knight Frank advised restructuring specialist Moorfields on the sale of the 66,045 sq. ft. City Wharf building to Hamcap (Aberdeen), part of commercial property consultancy HKIP’s latest high yielding fund, HYIF 3.
City Wharf, a six-storey mix of retail and leisure accommodation with Grade A office space on the upper floors, is let to a range of occupiers, including catering equipment company, Nisbets; marine services provider, V Ships; asset management software company, Return to Scene; shipping company, Clarksons Platou and Maersk Drilling UK.
The development has an adjoining 386-space multi-storey car park which is currently let to NCP and a 23,268 sq. ft. casino let to Grosvenor.
Planning permission is being sought to change another element of the development which is still on the market – Exchequer House – from offices to residential accommodation.
Douglas Binnie, associate at Knight Frank, said: “The sale of City Wharf underlines that investor interest in Aberdeen is returning. The city centre asset offered a strong retail and leisure opportunity, underpinned by notable occupiers, including NCP and neighbouring Grosvenor Casino.
“There is increasing belief that demand for both leisure and office accommodation is improving in Aberdeen, which is positive news for the City Wharf scheme, and with plans under way to transform the nearby Exchequer House from offices to residential, it will further complement the development.
“Despite previous uncertainty facing the Aberdeen market, the city remains an attractive place [in which] to invest.
“In particular, foreign investors are enticed by the yields on offer compared to other regional cities within the UK. With oil prices rebounding, City Wharf presented a good opportunity for HKIP to capitalise on the improving sentiment in Aberdeen.”
HKIP was advised by DPL Chartered Surveyors on the purchase of City Wharf, Aberdeen.