Aberdeen industrial sale marks latest investment deal for Knight Frank

Commercial property investment opportunities in Aberdeen are continuing to attract national and international interest, as the latest significant deal concluded by Knight Frank underlines.

The specialist’s north-east team represented developer Dandara in the £5.4million sale of a 20,000 sq ft industrial unit at the Badentoy North commercial park to the south of Aberdeen at Portlethen.

The unit, which has been pre-let to KCA Deutag Drilling on a minimum 20-year lease, has been bought by the pension arm of a FTSE 100 company. It is under construction and due for completion in March 2016.

Chris Ion, an Associate in the Aberdeen office of Knight Frank, said: “We firmly believe the right investment opportunities in Aberdeen will continue to appeal and this deal is another demonstration of that.

“We have seen at close quarters the challenges facing the oil and gas sector, and the north-east of Scotland as a whole, but ongoing activity in the North Sea sector continues and in turn there are still requirements for modern industrial facilities such as those being provided by Dandara at Badentoy North.

“With a high profile tenant in KCA Deutag Drilling secured, this unit was understandably a strong investment proposition. There were four interested parties and we are delighted to have concluded an agreement with the preferred investor.”

Badentoy North, with easy access to the A90 providing strong road links to existing networks and in future to the Aberdeen Western Peripheral Route, is a 60 acre site with Schlumberger Oilfield UK and DPD Group also secured as tenants.

The KCA Deutag Drilling unit comprises 19,988 sq ft of workshop and office accommodation with an additional 107,000 sq ft of yard space.

Douglas Duncan of D2 Chartered Surveyors representing the purchaser said: “The long income and high quality of tenant attracted the purchaser to this property. We look forward to having the opportunity to work with Dandara in the future.”

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