Aberdeen sees biggest office investment deal since onset of pandemic

Aberdeen has notched up its biggest office deal since the pandemic began with the £15 million-plus sale of Neptune Energy’s city headquarters.

The Grade A office building at 16 North Esplanade West – let in its entirety to a subsidiary of Neptune Energy Group, the exploration and production company – has been sold by a limited partnership managed by Tritax to Glade Capital.

The property was marketed with an asking price of £15.25m.

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It is understood that the transaction is the biggest such investment deal in the city for 18 months.

The Grade A office building – let in its entirety to a subsidiary of Neptune Energy Group, the exploration and production company – has been sold by a limited partnership managed by Tritax to Glade Capital. Picture: Neil Gordon

The 16 North Esplanade West building was completed in 2014 and consists of 40,764 square feet of office space spread over five levels.

As a result of the agreement, Aberdeen’s investment market has already outperformed last year’s office investment deal activity, which totalled just £5.5m as the economic impact of Covid-19 subdued transaction volumes and led to a decline in the price of oil.

Chris Ion, capital markets partner at Knight Frank Aberdeen, said: “The deal for 16 North Esplanade West underlines the value on offer in Aberdeen and the city’s attractiveness as a place to invest.

“It is a high quality, prominent building that remains one of the highest rated buildings for its sustainability credentials in the city – a key driver in the energy-led occupational market. With both Covid-19 restrictions easing and the oil price sustaining at pre-Covid levels, it could serve as a catalyst for further investment in 2021 and beyond.”

Lior Eisenberg, founding partner, Glade Capital, added: “Aberdeen’s 16 North Esplanade West investment represents our commitment to quality assets well located across UK city centres.

“We’re excited to grow our footprint in the UK market. This acquisition, like other recently completed transactions in our portfolio, embraces an investment philosophy of acquiring Grade A office properties that are leased on a long-term basis to a strong, investment grade tenant.”

Knight Frank and DWF advised the vendor, while Dentons acted for the purchaser.

Glade Capital Limited is a real estate investment platform based in London that is “dedicated to identifying, evaluating and analysing a variety of investment opportunities with a UK focus”.

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