Acting on behalf of Aberdeen Standard Investments, Ryden has completed the sale of the AB1 office building in Aberdeen to ADAPT Real Estate for UKRO for £13.495m, reflecting a net initial yield of 7.85%. Savills advised ADAPT.
AB1 was refurbished by Aberdeen Standard Investments in 2015 to provide 47,400 sq ft of Grade A office accommodation and was subsequently let to six tenants including five government departments and agencies.
The sale created strong interest from across the market spectrum with funds, REITs, propcos and overseas investors all running the rule over the opportunity, which highlights the growing positive sentiment for investment opportunities in the city.
Ken Shaw, Ryden's Investment Partner in Aberdeen said " With AB1 being the first multi-let office building to be offered in the market for over 5 years it was a difficult sale to predict but the secure income and quality refurbishment against the background of an improving local economy combined to generate interest.
“The price achieved was well ahead of expectations but will also give UKRO a very attractive return relative to other UK centres."