Aberdeen primed for biggest property deal since start of pandemic as vast office hits market

Aberdeen looks set for the biggest office deal in the city since the onset of the pandemic after a landmark building was put up for sale.

APAM – the UK property asset and investment manager – has instructed property agency Knight Frank to market Talisman House for £19.5 million. An investment deal for the building could trump the sale of Neptune Energy’s headquarters in the city earlier this year, which was marketed for just over £15.2m.

Comprising more than 96,000 square feet of office space over six storeys, Talisman House is let in its entirety to Repsol Sinopec Energy UK. Sinopec and Repsol acquired stakes in Talisman Energy – the original occupier of the building – in separate deals during 2012 and 2015, respectively.

The Holburn Street building was developed in 2000 and over the last three years Repsol Sinopec Energy UK has undertaken rolling refurbishment programmes, including recently incorporating state-of-the-art integrated operating centres. The firm is also involved in a partnership to develop a large-scale green hydrogen facility on Orkney from its Aberdeen base.

Comprising more than 96,000 square feet of office space over six storeys, Talisman House in Aberdeen is let in its entirety to Repsol Sinopec Energy UK.

Douglas Binnie, associate at Knight Frank, said: “Talisman House is a well-known building in Aberdeen, let to a strong occupier in Repsol Sinopec, which has solid ties to the city – not least in its modernisation of its office, but equally through its major hydrogen project on Orkney.

“While the asset offers a high yield, it is also a high-quality property in a good location in the city.

“A higher, and more sustained, oil price has helped lift Aberdeen’s commercial property market, with increased deal activity and renewed activity from occupiers.

“All things being equal, we expect to see increased investor appetite for the city as we move into 2022, with the occupier market continuing to recover and, with that, investment activity picking up.”

The firm’s recent analysis found that office take-up in Aberdeen doubled between the second and third quarters of 2021. Royal Dutch Shell recently announced its plan to relocate to the Silver Fin building, near Talisman House, and fellow oil major BP has committed to space at Aberdeen International Business Park in Dyce.

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions