FedEx boost for Aberdeen One development
Gateway: Aberdeen One
Titan Investors has secured the first occupier for its new 20-acre logistics park Aberdeen One.
FedEx has pre-let 43,500 sq ft on a 15 year lease. Under the development agreement an existing 70,000 sq ft warehouse will be stripped back to its structural frame and extensively refurbished, with new offices and yard facilities allowing FedEx to take occupation in July 2021.
Aberdeen One provides the gateway to the Altens Industrial Estate, Aberdeen’s main south-side industrial location, and is the first dedicated logistics park to be developed in Aberdeen.
Titan Investors acquired the site from Total in 2018 and demolished the old office facilities to generate 20 acres of future development opportunities.
Iain Landsman, associate director at CBRE, said: “For the best industrial property in Aberdeen we are still seeing strong demand, and so it is fantastic to land the internationally-recognised anchor tenant FedEx for this new development.
“Much of Aberdeen’s dated industrial stock no longer meets the needs of today’s occupiers and so Titan Investors are raising the development standards in the city by developing state-of-the-art logistics facilities, for benefit of the local economy.”
The remaining space within the warehouse will be simulatenously redeveloped to create a 28,000 sq ft high quality warehouse unit, also ready for occupation in July 2021. A new dedicated entrance will be created onto Crawpeel Road, allowing the remaining 14 acres of development land to be built out via independent access points as future occupier demand determines.
The Aberdeen industrial market saw activity growing for the fourth year in a row with take-up for 2020 totaling 720,780 sq ft. Iain Landsman, commented: “Despite the wider economic challenges the Aberdeen industrial market has continued to perform well. The five-year annual average take-up is 652,500 sq ft – this has been exceeded in 2019, 2019 and again in 2020. There are a lot of positives to take going into 2021 and beyond.”
Titan Investors was represented by CBRE, FG Burnett and Knight Frank whilst FedEx was advised by Orchard House Associates.
Shed5 has acquired a 52,000 square feet distribution warehouse on Drum Mains Park, for £1.75million off-market.
A further £0.3 million has been allocated for a programme of modernisations and improvements to the unit, which was previously owner-occupied by Maclean Electrical.
The purchase of the property was made with the assistance of JLL as well as S&F Investments Advisers with property consultants Graham + Sibbald acting for Maclean.
Guy Leslie, of S&F Investment Advisors, said: “It has fantastic potential, is in an excellent location with fantastic transport links and our client will look to undertake a refurbishment of the property ahead of offering it to new tenants. With a 75 meter yard, our client will look particularly to improving the loading, as well as re-decorating the offices.
“It is an ideal asset to sit in the Shed5 Investments portfolio. The purchase and commitment to this site is part of an ongoing active purchase strategy of value-add industrial assets in fundamentally strong locations which are seeing positive rental growth.”
Charlie McNaught, of JLL, said: “The property’s fundamentals are extremely robust and it offers the potential for significant upside in the near future.”
Mark Gillies, of Graham + Sibbald, said: “At over 50,000 sq.ft. with an extensive concrete yard, in the heart of Scotland, the attributes of the property are rarely available in the current market and as such, anticipate strong levels of interest.”
Graham + Sibbald, JLL and Colliers have all been retained as joint letting agents on the building.