Roxburgh & Company - Offices Development - Edinburgh, Queenferry Rd, Dean House

Date: 07 Aug 2001

The Background

Aberdeen Property Asset Managers (APAM), advised by Roxburgh & Company, have, on behalf of one of their managed funds recently secured planning permission for a new office extending to approximately 24,000 sq ft. This follows the acquisition of Dunedin House, Ravalston Terrace in July 1998 and Croythorn House, Ravalston Terrace in March 2000, immediately adjacent to Dunedin House. The latter was acquired from Standard Life in an off-market transaction, again advised by Roxburgh & Company.

These acquisitions have enabled the proposed demolition of a former annexe building, previously let to J Rothschild Assurance Holdings Plc, (now St James' Place Holdings Plc) following the renunciation of their lease, allowing them to relocate to Melville House, 18-22 Melville Street.

The Building - Dean House

The property, to be known as Dean House, is located only a short distance from Edinburgh's West End, whilst being easily accessible from Queensferry Road, the main arterial route to the city centre from the Forth Road Bridge. The existing annexe is to be demolished and replaced by a new 3-storey office building with undercroft car-parking. The building will be highly specified to include four-pipe fan-coil air-conditioned throughout, full accessed raised flooring and suspended ceilings. The Project Management Partnership, an Edinburgh based practice, have designed the building. Demolition is due to commerce in mid-September with completion expected in June/July of next year.

The Pre-Let

Balfour Beatty Construction Ltd will construct the building to be occupied as their new headquarters on the basis of a 20-year full repairing and insuring lease with a tenant only break option after 17 and a half years. They are to pay a rent equivalent to £22 per sq ft with the benefit of a 9-month rent-free period. They currently occupy Croythorn House, adjacent to the subjects where their lease expires in 2003.

It is intended that part of Croythorn House will be refurbished over the course of the next few years as it is in need of upgrading.

APAM are keen to establish a mini-business park environment, in this prominent office location only a short distance from the city centre.

APAM's legal advisers are Messrs McLay Murray & Spens. Balfour Betty were advised by Messrs Tods Murray. Specialist corporate property advisers, CPM Consulting, acted for the Balfour Beatty whilst Roxburgh & Company advised APAM.

Comments

- David Sivewright of Aberdeen Property Asset Managers says, "We are extremely pleased to have secured this pre-letting to Balfour Beatty and are delighted to have maintained their occupation within Ravelston Terrance."

- Greame Taylor, Finance Director of Balfour Beatty Constructions says, "Croythorn House is currently the headquarters of Balfour Beatty's UK building and regional civil engineering business, which has annual sales in excess of £500m. We have looked carefully at our future requirements and believe that the new building will provide us with facilities appropriate for the New Millennium."

- Stephen Kay of Roxburgh & Company says, "The pre-letting to Balfour Beatty highlights the quality of this location, and will allow the tenant to occupy a well specified building in an extremely central location, (with ample car-parking provisions) at a rent which compares favourably with the city centre and Edinburgh Park. Our clients are shortly to turn their heads to a refurbishment of the Croythorn House which will improve the general locale considerably."

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