Aberdeen offices purchased by Rockspring

Posted on by John Cronin

A landmark office building in Aberdeen has been purchased by an investment management company in an off-market transaction.

Riverside HouseInvestment manager Rockspring Property has announced the purchase Riverside House, located close to the Union Square shopping centre development in Aberdeen.

Riverside House is a Grade A office building offering 52,745 sq ft of floor space over 5-stories. The building is currently running at full occupancy and tenants include Talisman Energy, Scottish Ministers and AWG Business Centres Ltd (AWG Property). Serviced offices provider Regus manages suites on the 3rd floor of the building. The reported net yield is 8% which equates to an approximate rental price of £17.50 / sq ft.

AWG Property is an Edinburgh-based property company and is the development arm of Anglian Water Group. The company, which has an extensive land bank and a varied property portfolio, manages over 400,000 sq ft of office space across Scotland. AWG is set to redevelop 124 Vincent Street, a 50,000 sq ft city-centre Glasgow office scheme.

Riverside House was purchased on behalf of Cheshire Pension Fund in an off-market deal for £11.5m. Riverside House has previously sold off-market, with AWG Developments and Bank of Scotland selling the freehold to Standard Life in 2003 for £9.32m. The building was completed in 2002.

Commenting on the transaction, Michael Pryer, Associate Partner at Rockspring said: “Riverside House allows our client to gain exposure to a strong regional office market in the UK. Given the asset’s prime location and tenant covenant strength, we are confident it will deliver long-term capital and income growth.”

Rockspring was represented by FG Burnett.

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