Prominent Aberdeen office building sold in major deal

THE prominent 16 North Esplanade building in Aberdeen has been sold in the ‘biggest investment deal in the city for 18 months’.

The grade A office building – let in its entirety to a subsidiary of Neptune Energy Group, the exploration and production company – has been sold by a limited partnership managed by Tritax to Glade Capital. The property was marketed with an asking price of £15.25 million.

The deal for 16 North Esplanade West means that Aberdeen’s investment market has already outperformed last year’s office investment deal activity, which totalled £5.5 million as the economic impact of Covid-19 subdued transaction volumes and led to a decline in the price of oil.

Chris Ion, capital markets partner at Knight Frank Aberdeen, commented, “The deal for 16 North Esplanade West underlines the value on offer in Aberdeen and the city’s attractiveness as a place to invest. It is a high quality, prominent building that remains one of the highest rated buildings for its sustainability credentials in the city – a key driver in the energy-led occupational market. With both Covid-19 restrictions easing and the oil price sustaining at pre-covid levels, it could serve as a catalyst for further investment in 2021 and beyond.”

Lior Eisenberg, founding partner, Glade Capital, added, “Aberdeen’s 16 North Esplanade West investment represents our commitment to quality assets well located across UK city centres. We’re excited to grow our footprint in the UK market. This acquisition, like other recently completed transactions in our portfolio, embraces an investment philosophy of acquiring grade A office properties that are leased on a long-term basis to a strong, investment grade tenant.”