FG Burnett - Offices Sale - Aberdeen, Scotland

Date: 31 Mar 2008

Private property investment company Braefoot Cox Limited has purchased the Altec Centre in Altens, Aberdeen, from Kenmore Capital Portfolio Limited, for £4.1 million, reflecting a net initial yield of 8.1%.

The Fife based company viewed the 29,000 sq ft office building as an attractive investment because it is one of the few developments able to accommodate smaller space requirements to the south of Aberdeen.

David MacLeod, director of property consultants FG Burnett, who acted for Braefoot Cox, said the purchase represents a good opportunity to manage the multi-let asset and increase income streams.

Mr MacLeod said: "A great deal of office accommodation in Altens is owner occupied or single let but smaller office suites of 1-3,000 sq ft are thin on the ground.

"Demand for these types of units is strong but they are in short supply and developers of new office buildings are unlikely to offer suites of this size.

"We think that the Altec Centre fills a gap in the market. Braefoot Cox are a company who see good value in this market and it is encouraging to see them investing in Aberdeen's buoyant economy."

John McColl, managing director of Braefoot Cox, said: "Altec Centre was an attractive proposition because it is a multi-let office building in an area which is dominated by larger office developments. There is good potential to improve the income stream through rent reviews, lease renewals, carrying out refurbishment and by active asset management.

"Aberdeen is benefiting from a fast paced, thriving economy and we are very positive about the future of the Altec Centre as a provider of first class accommodation to emerging and established businesses."

Ryden advised the vendor, Kenmore Capital Portfolio Limited, in the sale and during their period of ownership.

Alistair Kay of Kenmore said: "When we acquired the property in 2005 it was approximately 50% let and in the subsequent years we worked hard with Ryden to increase the occupancy to 90%. At the same time we successfully increased headline rents from £11.50 per sq ft to almost £13.75 per sq ft. Altogether the property performed well for us and we would expect it to continue to do so in the future."

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