Maersk House

PRESTIGIOUS OFFICE INVESTMENT ABERDEEN

MAERSK HOUSE Altens | Aberdeen AB12 3LG

OVERVIEW > Landmark office building > Whole site is let to Maersk Oil North Sea UK Limited which has a D&B rating of 5A1 Covenant > Prominent site within prestigious location > Existing building extending to 6,792.18 sq m (73,111 sq ft) net internal and new extension extending to 2,465.35 sq m (26,537 sq ft) net internal > 10.475 acres (4.24 hectares) site incorporating 385 car parking spaces with potential for expansion > Freehold > New 15 year term at low base rentals of £17.75 per sq ft and £19.50 per sq ft compared to recent transactions within the immediate vicinity at £24 per sq ft > Aberdeen has the highest rental growth forecast of any major regional city in the UK over the next 5 years > Offers in excess of £26.4m exclusive of VAT for our clients’ heritable interest reflecting a net initial yield of 6.5% after allowing for purchaser’s cost of 5.8%

MAERSK HOUSE Altens | Aberdeen AB12 3LG

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ECONOMY

LOCATION

Aberdeen is Scotland’s third largest city with a population of approximately 225,000, a regional catchment of around 500,000 and projected to increase by approximately 20% by 2035 to over 270,000 people in Aberdeen City.

The city is the main administrative and financial centre for Aberdeen City and Shire and is recognised as the energy capital of Europe. It is also ranked in the Centre of Cities “top 5 UK cities with high potential growth” and with an unemployment rate of only 2.3%, and a current employment rate of 77.9%, Aberdeen is one of the UK’s most prosperous cities.

The property is situated at the junction of Crawpeel Road and Souter Head Road within Altens Estate which lies approximately three miles south of Aberdeen City Centre and Harbour. Wellington Road links to Souter Head Road and thereafter affords easy access to the A90 trunk road leading from the city to the south.

The site extends to 10.475 acres (4.24 hectares) or thereby.

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UNION SQUARE

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NORTH DEE BUSINESS QUARTER

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SHELL

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AMEC

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TOTAL

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ODFJELL

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PROPOSED NEW HQ OFFICE

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NEXEN

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WEATHERFORD

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SWIRE

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TOTAL

DESCRIPTION

NET INTERNAL AREAS

The original building was designed over 5 floors in the shape of a “chevron� by the oil company and original occupier and was completely refurbished in 2006, including the installation of air-conditioning and new windows throughout.

The existing building provides a total net internal area of 73,111 sq ft (6,792.18 sq m) inclusive of staff canteen, kitchen and reception. Toilets, tea-prep areas and lifts are provided to each floor.

The extension was completed in January 2014 arranged over 3 floors predominantly in open plan with a high specification which includes 3 pipe vrf, raised access floors and lifts.

The new extension totals 26,537 sq ft (2,465.35 sq m) of net internal floor space with toilets, tea-prep areas and lifts on each floor.

The total net internal area between the two buildings is 99,648 sq ft (9,257.53 sq m).

CAR PARKING A total of 385 car parking spaces are provided which is a ratio of 1:259 sq ft but the site can easily accommodate additional development/car parking if required.

EPC The original building has an Energy Performance Rating of C. The new extension has been rated at B+.

SERVICES The existing building is served by a vrv 4 pipe heating/ cooling system and the new extension has the benefit of a 3 pipe vrf comfort cooling/heating installation.

LEASE TERMS The original building is held on a lease which incorporates a planned maintenance schedule and has been extended with effect from 14th January 2014 for a period of 15 years incorporating 5 yearly rent reviews based on 2.5% per annum compound.

The new extension is held on a full repairing and insuring lease from 14th January 2014 for a period of 15 years incorporating 5 yearly rent reviews based on 2.5% per annum compound.

ASSET MANAGEMENT OPPORTUNITIES • The loft space has been fitted at the tenant’s expense for the purposes of archive storage but could quite easily be converted to offices.

• The site coverage is low and with the double road frontage, additional stand-alone office pavilions could be developed increasing the existing floor space by over 50%.

• Future extensions could be accommodated, linked into the existing buildings.

All the above would be subject to the existing tenant’s approval or at lease expiry.

RENTALS

ESTIMATED RENTAL VALUE

The original building initial rental is £1,297,831.57 per annum which devalues to £17.75 per sq ft inclusive of 288 car parking spaces. The new extension rental is £517,471.50 per annum which devalues to £19.50 per sq ft inclusive of 97 car spaces.

In our opinion the true open market rental value would be fairly stated as follows:

At first review the rental increases to £1,468,377.29 and £585,471.51 and at the second review the rental increases to £1,661,334.13 and £662,407.27 respectively.

Original building New extension TOTAL

73,111 sq ft at £20 per sq ft 26,537 sq ft at £22.50 per sq ft £2,059,303 per annum

COVENANT INFORMATION The tenant under both leases is Maersk Oil North Sea UK Limited. The tenant has a D & B rating of 5A1 based on a tangible net worth of $1,430,695,000 for the year ending 31 December 2012. Further information on request.

OCCUPATIONAL MARKET Aberdeen continues to experience one of the strongest occupational markets in the UK. Rentals for West End refurbished/extended buildings have now achieved well in excess of £30 per sq ft and within Aberdeen City Centre grade A space has also achieved up to £31 per sq ft.

Recent transactions within out-of-town locations include the following:

ADDRESS

TENANT

TRANSACTION

DATE

SIZE

RENT

LEASE

Prime Four

Business Park

Kingswells

Premier Oil

Prelet

January 2013

63,180 sq ft

£27.75

15 year

Nexen

Prelet

March 2012

100,000sq ft

£23.25

15 year

Apache

Prelet

March 2012

100,000sq ft

£23.00

15 year

Transocean

Prelet

March 2012

99,749 sq ft

£21.75/£19.50

20 year

City View

Wellington Road

Pavilion 2

AMEC

Spec development

Aug 2013

19,339 sq ft

£24

10 years

Pavilion 1

AMEC

Spec development

Oct 2013

14,090 sq ft

£24

10 years

INVESTMENT ACTIVITY As a major UK office centre with a dynamic economy, Aberdeen has attracted significant investment from major UK institutions, high net wealth individuals and overseas funds.

RECENT ACTIVITY

ADDRESS

DATE

PURCHASER

PRICE

NET INITIAL YIELD

COMMENTS

2&3 Aspect 32 October 2013 CCLA £13,500,000 6.94%

Westhill

48,357 sq ft let to Technip on an unexpired period of 9.75 years.

rime Four Business Park P July 2013 RLAM £27,400,000 6.05%

Kingswells

63,108 sq ft prelet to Premier Oil for 15 years

Prime Four Business Park September 2012 F&C £94,000,000 6.8%

Kingswells Commercial

PT

Prelet to major oil companies for 15/20 years

Bridgeview June 2012 Gatehouse £59,900,000 7.15% Consort House

Aberdeen

158,000 sq ft let on 13 years unexpired and 4 years unexpired and held on ground lease.

CAPITAL ALLOWANCES

INVESTMENT PROPOSAL

The vendor will retain all capital allowances.

Offers are invited in excess of £26.4m exclusive of VAT for our clients’ heritable interest reflecting a net initial yield of 6.5%, increasing to 7.36% in January 2019 and 8.32% by January 2024.

VAT VAT will be payable on the purchase price although it is anticipated that the sale will be treated by way of a transfer of a going concern (TOGC).

FURTHER INFORMATION For further information or to arrange a viewing please contact the sole selling agents Alexander Robb AB ROBB LTD 10b Queens Gardens Aberdeen AB15 4YD 01224 611800 alex@abrobb.com

Whilst every care has been taken in the preparation of these particulars and they are believed to be correct, they are not warranted and should not be taken to form part of any contract. Any purchaser or lessee should satisfy himself as to the correctness of the statements contained in these particulars. The owner of this property does not make or give and neither the agents nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to the property described in these particulars.