Stewart Milne's £36 million Acergy sale 'early sign of recovery in property market'

STEWART Milne Developments has sold its Acergy development in Westhill, Aberdeen, to a commercial property fund managed by investment manager Prupim for £36 million.

Reflecting a net initial yield of 7.1 per cent, the development company heralded the deal as the "biggest commercial development sale in Aberdeen for nearly two years".

Stewart Milne Developments said the transaction was indicative of the "growing early signs of recovery in the property market".

Development of the 17-acre site was completed in October 2008 creating a headquarters for marine engineering and construction company Acergy UK on a 20-year lease.

The site includes four buildings set in extensive landscaped grounds, with the main office premises set around a central lochan, and includes an engineering workshop and staff leisure facilities.

Stewart Milne Developments was represented by Ryden, with Lewis Ellis acting for Prupim.

Malcolm Deans, managing director of Stewart Milne Developments, said: "This is a flagship development, which we delivered in partnership with Stewart Milne Construction.

"Acergy UK carries an excellent covenant and this sale fits well with our strategy of acquisition, development and ultimate realisation of investment potential."

The deal comes a week after parent company Stewart Milne Group posted the first loss in the firm's 38-year history after the recession decimated earnings.

The group unveiled a net loss of 2m in the year to 30 June and took a further 25m hit through write-downs on the value of its land and restructuring costs.

But chairman Stewart Milne said house sales for 2009-10 had started well and were 20 per cent ahead of the previous year.