South Gyle estate sold | Aberdeen short of top offices
Asset manager Abrdn has sold the 12.3-acre South Gyle Trade Park in west Edinburgh for just under £14 million in a competitive bidding process.
The sale to Rossco Properties (Edinburgh) was handled by Lismore Real Estate Advisors and fulfils the buyer’s interest in pursuing similar assets.
South Gyle Trade Park, just off the city bypass, is split into four distinct components, with an overall floor area of 139,650 sq ft. It comprises 18 terraced and solus trade park units, three light industrial units and a single office building.
Commenting on the sale, Colin Finlayson, director of Lismore said: “Unbroken prime industrial assets such as this in Edinburgh are rare and the sale generated competitive bidding from a wide range of investors.
“The sale price achieved highlights positive market sentiment for prime multi-let industrial and trade park assets.”
A spokesperson for Rossco added: “Rossco already has a substantial property investment portfolio, so this asset represents both an income and capital growth play n the Central Belt’s prime industrial, distribution and trade park market.
“We are actively hunting for similar suitable opportunities.”
The tenants include Network Rail, Thistle Timber & Building Supplies, Wolseley, D&G Autocare, Geo Amey, Martin Plant Hire, Dofos and CityFibre.
Aberdeen running short of top grade offices
Harbour Energy has secured 34,000 sq. ft. of Grade A offices at Aberdeen’s Prime Four Business Park in Kingswells in a deal that leaves the city perilously short of top quality space.
The deal marks the third property transaction during 2023 in Aberdeen involving one of the energy majors.
Shell relocated to 100,000 sq. ft. of prime office space at the Silver Fin Building on Union Street and BP extended its 192,000 sq. ft. lease at Stoneywood – the Granite City’s largest office transaction of 2023 – with Knight Frank involved in all three deals.
Knight Frank represented Schlumberger, the current occupier of the space, with FG Burnett acting on behalf of Harbour Energy.
Knight Frank said there are now emerging indications that it is proving more difficult for occupiers to secure the right property in Aberdeen, which suggests the gap between supply and demand is beginning to close in the city. Grade A vacancy has dropped to under 2% – the lowest on record for the city.
Eric Shearer, head of office at Knight Frank Aberdeen, said: “We would like to express our gratitude to our clients and the other agents involved for getting these deals done, in what has been a difficult market.
“The health of the Aberdeen commercial property market is still fundamentally tied to the price of brent crude, which has thankfully been trending at more than $70 per barrel for the last two years.
“This is driving strong occupier demand for commercial real estate and a significant increase in deal flow since the lows of the pandemic and that is making it more competitive for occupiers that want to secure the best space. Planning ahead will be more important than it has been for some time.”