M&G Real Estate and Knight Group have secured Chrysaor Holdings for 48,000 sq ft of office space at The Capitol building in Aberdeen, in what is a significant boost for the city’s occupier market.
The UK oil and gas independent signed a 10-year lease and is taking six floors of the eight storey building. The office will be the new headquarters for the firm’s North Sea operations.
In January, Shell sold a package of UK North Sea assets to Chrysaor for a total of up to $3.8bn, with the deal understood to include around 400 staff.
Phil Kirk, chief executive officer, said: “At the time of the transaction I promised to secure a prime property for Chrysaor’s North Sea Operations. I am now delighted to confirm that we are proceeding with a landmark location with high quality office space for employees joining Chrysaor. In the coming months we will be fitting-out the office and installing technology to enable our employees to deliver at their best. Our move to The Capitol is a positive step for Union Street and the wider Aberdeen area.”
Chrysaor’s onshore North Sea support employees will be based in the property, which was recently restored and redeveloped after a £30m investment by the owners.
Arron Finnie, partner at Ryden, who represented M&G and Knight Group, commented: “We're delighted to announce the letting to Chrysaor who have chosen this prime city centre office. We have been through a difficult market in Aberdeen but the quality of The Capitol is evidenced by the fact that we now have only one floor remaining of 10,344 sq ft.”
James Barrack, managing director at Knight Property Group, noted: “In an improving oil and gas market it is refreshing to see new businesses emerging and making long term commitments to Aberdeen and the city centre.”
William Badger, asset manager at M&G Real Estate, added: “This deal with Chrysaor shows the ongoing demand for new Grade A office space.”
Chrysaor Holdings joins existing tenants PwC and MMS in The Capitol.
Ryden is jointly instructed with AB Robb and Savills. Chrysaor was advised by FG Burnett.