THERMOPYLAE HOUSE, TEEKAY HOUSE & PROSERV … · THERMOPYLAE HOUSE, TEEKAY HOUSE & PROSERV HOUSE ... INVESTMENT SUMMARY ... first and second floors together with 77 parking spaces

THERMOPYLAE HOUSE, TEEKAY HOUSE & PROSERV HOUSE

WESTHILL, ABERDEEN

PRIME LONG INCOME OFFICE INVESTMENTS WITH GUARANTEED RENTAL GROWTH | 1


WESTHILL, ABERDEEN

PRIME LONG INCOME OFFICE INVESTMENTS WITH GUARANTEED RENTAL GROWTH


WESTHILL, ABERDEEN



WESTHILL, ABERDEEN


INVESTMENT SUMMARY

Opportunity to purchase three prime, long let office investments, located within Westpoint Business Park and Prospect Park, Westhill;

Teekay House is let to Teekay Petrojarl UK Limited (guaranteed by Teekay Corporation) until 31st March 2028 at a passing rent of £430,066 per annum and benefits from upward only rent reviews with minimum uplifts. We calculate the next uplift, due at 4th March 2018 to be £498,576 per annum, the vendor will ‘top up’ the rent to this level. We calculate the subsequent 2023 and 2028 rent reviews to provide minimum rental uplifts of £577,999 per annum and £670,074 per annum respectively. The tenant has 2 options to extend the lease by a further 5 years.

Teekay House provides modern office accommodation extending to 19,985 sq ft of over ground, first and second floors together with 77 parking spaces.

Proserv House, is let to Proserv UK Limited (guaranteed by Proserv Group Incorporated) until 8th November 2033 at a passing rent of £549,947 per annum and benefits from upward only rent reviews with minimum uplifts. We calculate the next uplift, due at 9th August 2018 to be £559,097 per annum, the vendor will ‘top up’ the rent to this level. We calculate the subsequent 2023, 2028 and 2033 rent reviews to provide minimum rental uplifts of £646,704 per annum, £739,116 per annum and £856,857 per annum respectively.

Proserv House provides modern office accommodation extending to 24,173 sq ft of over ground, first and second floors together with 65 parking spaces.

Thermopylae House is let in its entirety to Kongsberg Maritime Limited (guaranteed by Kongsberg Gruppen ASA) until 12th February 2028 at a passing rent of £572,901 per annum. The lease incorporates provision of 5 yearly fixed rental uplifts with the next uplift due in June 2022 to £664,150 per annum and the final uplift due in June 2027 to £769,931 per annum;

Thermopylae House provides modern office accommodation extending to 26,878 sq ft benefitting from 88 car spaces providing an excellent parking ratio of 1:305 sq ft;

The overall WAULT is 12.07 years to expiry.

Heritable Interest (Scottish Equivalent of English Freehold).

Offers in excess of £19,800,000 (Nineteen Million, Eight Hundred Thousand Pounds Sterling) are sought for the benefit of our client’s heritable interest in the properties, subject to contract and exclusive of VAT.

Assuming an initial rent roll of £1,630,574 per annum, purchase at this level provides the following yield profile after purchaser’s costs at 6.25%:

Date Yield

Purchase 7.75%

2022 8.18%

2023 8.98%

2027 9.48%

2028 10.36%

Consideration may be given to the sale of the properties separately or as packages subject to negotiation.


WESTHILL, ABERDEEN


ABERDEEN

Aberdeen is located in the north east of Scotland and is the country’s third largest city. It is internationally important as a centre of expertise in oil and gas exploration and associated engineering firms, the city is the main administrative and financial centre for Aberdeen City and Shire, and benefits from a diverse economy. Aberdeen is home to a number of major international businesses including First Group and Aberdeen Asset Management, as well as a strong service sector that includes companies such as HSBC, Barclays, Lloyds Banking Group, RBS, KPMG, Deloitte, PWC and Ernst & Young.

M74

M9

M77

A1M8M8

M90

M80M73 M876

EDINBURGHGLASGOW

LIVINGSTON

DUMFERMLINESTIRLING

ST ANDREWS

PERTH

ABERDEEN


Westhill lies approximately 6.5 miles to the west of the city centre and was the brainchild of local solicitor Donald Fraser Dean in 1963, originally being built as a garden suburb but developed quickly into a satellite town. Now, Westhill is a mixed use area and a 100% prime location of choice for many multinational business occupiers. Indeed, Total E&P have recently relocated from Altens. Schlumberger, SubSea 7, TAQA, Marsh, Amec and Technip have enjoyed the location and its amenities for a number of years.

A decision will be made in January 2018 as to the location of the new Aberdeen FC Football Stadium. Plans have been prepared for this to be situated at Kingsford, adjacent to A944 Aberdeen to Westhill Road and new AWPR. This would be Scotland’s most modern football stadium and complex and would further strengthen the strategic location and importance of Westhill.

NORTHSEA

A90 THE PARKWAY

A 96 INVERURIE ROAD

A90

ELLO

N R

OAD

A947 STONEYW

OO

D ROAD

ABERDEEN AIRPORT

ABERDEEN

DYCE STATION

ABERDEEN STATION

TOWARDS DUNDEE, EDINBURGH & GLASGOW

A90 NO

RTH

AND

ERSON

DRIV

E

A90

WESTHILL

RIVER DEE

A944 A944

COUNTESSWELLS ROAD

B9119

B9119

A93 N DEESIDE ROAD

A90

A96 INVERURIE ROAD

A

WPR

(ABE

RD

EEN W

ESTERN

PER

IPHE

RAL

ROU

TE)

Aberdeen’s population is circa 222,800 (Source: 2011 Census) and a regional catchment of approximately 500,000 people. It is anticipated in the next 25 years that the city’s population will increase by approximately 21%, rising to circa 270,000 (Source: Aberdeen City Council).


WESTHILL, ABERDEEN


WESTHILL, ABERDEEN


PARIS2 hours

LONDON1 hour 25 minutes

AMSTERDAM1 hour 35 minutes

BIRMINGHAM

6 hours 53 minutes7 hours

EDINBURGH

2 hours 22 minutes2 hour 48 minutes

LONDON

7 hours 9 hours 24 minutes

NEWCASTLE

4 hours 53 minutes4 hours 33 minutes

GLASGOW2 hours 34 minutes

ABERDEEN

MANCHESTER5 hours 55 minutes6 hours 20 minutes

ABERDEEN AIPORT18 minutes

SHETLAND (LERWICK) 12 hours 30 minutes

ORKNEY (KIRKWALL) 6 hours

ROAD

The motorway network provides access to both the north and south of the country. It is approximately a 2.5 hour journey from Edinburgh and Glasgow and less that 3 hours from Inverness. Key road links include the A96 which runs North West to Inverness and the A90 south to Dundee, Perth (which connects to the M90), Edinburgh and Glasgow. The A944 is the main road from Aberdeen to Westhill.

The AWPR is the new city bypass that has been promoted by and funded by the Scottish Government and the City of Aberdeen Council. The project is due for completion in spring 2018. Journey times between Westhill and Aberdeen, the Airport, Altens and the A90 trunk road south will be significantly reduced. The AWPR will intersect with the main Westhill to Aberdeen Road.

RAIL

Aberdeen Railway Station is situated in the city centre and is served by the main east coast rail network with connections to all the main UK destinations.

AIR

Aberdeen Airport is located approximately 7 miles north west of the city centre with flights to a variety of domestic and international destinations including frequent daily services to principal UK cities and direct flights to Europe including Frankfurt, Amsterdam, Paris and Barcelona.

The airport is currently undergoing improvement works to accommodate the increase in passenger numbers and separately it accommodates the world’s busiest commercial heliport. The terminal will increase by around 50%, the £20 million works are expected to be complete by 2019.

ABERDEEN TRANSPORT CONNECTIONS

Located around 125 miles north of Edinburgh and 66 miles north of Dundee, Aberdeen benefits from an excellent communication system with transport links by road, rail, air and sea to many of the major cities in the UK.

SEA

Aberdeen is home to one of the busiest commercial ports in the UK and is a vital resource for the North Sea Oil and Gas industry. 4.2 million tonnes of cargo are handled to and from nearly 40 destinations and Northlink operate passenger and car ferries to Orkney & Shetland. There are over 14,800 vessel movements, 100,000 crew and 155,000 passengers every year. The works for the £350 million expansion of the harbour commenced in 2017.


WESTHILL, ABERDEEN


SITUATION

Prospect Park and Westpoint Business Park are situated in Westhill’s prime business location. It is located approximately 6.5 miles from Aberdeen city centre, being immediately accessible from the B9119 which links into the A944 which is the main arterial route from Westhill to Aberdeen.

The subjects occupy prominent locations within the parks. Surrounding high profile occupiers include Total E&P, Subsea 7, Schlumberger, Technip, and TAQA.

SITE AREA

We estimate that the sites extend to the following areas, as measured from Promap.

Property Areas (acres) Area (hectares)

Teekay 0.93 0.38

Proserv 1.00 0.40

Kongsberg 1.18 0.48

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2

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4

5

6

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8

9

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9

1213

11

10


WESTHILL, ABERDEEN


DESCRIPTION

Teekay Petrojarl UK Limited

The property comprises a modern office building constructed in 2013. In total the building extends to approximately 19,985 sq ft over ground, first and second floors, together with 77 car parking spaces, providing an excellent ratio of 1:260 sq ft.

¡ Floor to ceiling height of 2.70m;

¡ VRF heating and cooling system;

¡ Raised access floors and suspended ceilings;

¡ LG7 compliant lighting;

¡ DDA compliant passenger lift;

¡ Double height modern reception;

¡ Male and female toilet facilities on each level.


WESTHILL, ABERDEEN


Proserv UK Ltd

The property comprises a modern office building constructed in 2013 and extends to approximately 24,173 sq ft over ground, first and second floors, together with 65 car

parking spaces, providing an excellent ratio of 1:372 sq ft.



¡ Raised access floors and suspended ceilings;


¡ DDA compliant passenger lift;


¡ Male and female toilet facilities on each level.


WESTHILL, ABERDEEN


Kongsberg Martime Ltd

The property comprises a modern office building constructed in 2012 and extends to approximately 26,878 sq ft over ground, first and second floors, together with 88 car parking spaces, providing an excellent ratio of 1:305 sq ft.

The tenant uses the ground floor for workshop and laboratory space with concrete floors and exposed ceilings.

The main office space benefits from the following specification:



¡ Raised access floors;


¡ Two DDA compliant passenger lifts;


¡ Male, female and disabled toilet facilities on each level.


WESTHILL, ABERDEEN


TENANCY

Tenant Area (sq ft)

EPC Lease Start Lease Expiry Rent Review Passing Rent per annum (per sq ft) including vendor top up

Comments

Teekay Petrojarl UK Limited (guaranteed by Teekay Corporation)

19,985 B 04/03/2013 31/03/2028 04/03/2018£498,576

(£24.95) topped upMinimum uplift at 2023 rent review to £577,999 per annum. Minimum uplift at 2028 review to £670,074 per annum. Tenant has 2 options to extend the lease by a further 5 years.

Proserv UK Limited (guaranteed by Proserv Group Incorporated)

24,173 B 09/08/2013 08/11/2033 09/08/2018£559,097

(£23.13) topped upMinimum uplift at 2023 rent review to £646,704 per annum, minimum uplift at 2028 rent review to £739,116 per annum and minimum uplift at 2033 review to £856,857 per annum.

Kongsberg Martime Ltd (guaranteed by Kongsberg Gruppen ASA)

26,878 B 29/06/2012 12/02/2028 29/06/2022£572,901(£21.31)

Fixed rental uplifts, due in 2022 and 2027, where the rent will be increased to £664,150 per annum and £769,931 per annum respectively. Area stated in lease is 26,010 sq ft.

Total 71,036 £1,630,574

The vendor will top up the 2018 rent reviews over Teekay Petrojarl UK Ltd and Proserv UK Ltd therefore the adjusted passing rent at purchase will be £1,630,574 per annum.

ACCOMMODATION

The buildings have been measured in accordance with the RICS Code of Measuring Practice (6th Edition). We estimate the Net Internal Areas (NIA) to be as follows:

Description Area (sq ft) Area (sq m)

Teekay Petrojarl UK Limited 19,985 1,856.71

Proserv UK Limited 24,173 2,245.76

Kongsberg Martime Ltd 26,878 2,497.08

Total 71,036 6,599.55

The area stated in the lease for Kongsberg Martime Ltd is 26,010 sq ft.

TENURE

Heritable interest (Scottish equivalent of English Freehold).


WESTHILL, ABERDEEN


COVENANT

Teekay Petrojarl UK Limited

Established in 1973, Teekay has grown to become one of the world’s largest marine energy shipping companies. They have £12 billion in assets and some of the world’s largest fleets in their core markets.

For more information please visit: www.teekay.com

The lease is guaranteed by Teekay Corporation, based in the Marshall Islands.

The tenant, Teekay Petrojarl UK Ltd, has a D&B rating of 2A4 and a summary of the key figures from their last 3 years accounts is provided below:

Fiscal Non consolidatedUSD 31 Dec 2016



Sales Turnover 5,538,212 4,970,867 5,215,268

Profit / (Loss) Before Taxes 207,469 118,143 539,381

Tangible Net Worth 2,611,727 2,315,798 2,126,113

Net Current Assets (Liabilities) 1,409,810 565,809 (180,818)

Proserv UK Limited

The Proserv brand was introduced in 2011 through the amalgamation of 5 separate companies. They provide services and technology solutions across the drilling, production and decommissioning market sectors. They operate in 6 regions, have 22 facilities in 12 countries and have 1,400 employees.

For more information please visit: www.proserv.com

The lease is guaranteed by Proserv Group Incorporated, based in Houston.

The tenant, Proserv UK Ltd, has a D&B rating of N1 and a summary of the key figures from their last 3 years

accounts is provided below:

Fiscal Non consolidated GBP 31 Dec 2016 (000’s)

Fiscal Non consolidated GBP31 Dec 2015

Fiscal Non consolidated GBP31 Dec 2014

Sales Turnover 57,192 85,189 100,170

Profit / (Loss) Before Taxes (8,210) (3,903) 6,104

Tangible Net Worth (1,390) 4,225 3,419

Net Current Assets (Liabilities) 57,661 51,437 51,705

http://www.teekay.com

http://www.proserv.com


WESTHILL, ABERDEEN


Kongsberg Martime Limited

Kongsberg Martime are a wholly owned subsidiary of the Kongsberg Group. They are a leading Norwegian technology company established on 20th March 1814, the Kongsberg Group has more than 200 years in business. They deliver systems for dynamic positioning and navigation, marine automation, handling systems, safety management, cargo handling, subsea survey and construction, maritime training, satellite positioning, and autonomous solutions.

For more information please visit: www.km.kongsberg.com

The lease is guaranteed by Kongsberg Gruppen ASA, benefitting from a Nordic Triple-A Rating of AA which represents ‘Good Creditworthiness’.

The tenant, Kongsberg Martime Ltd, has a D&B rating of 4A2 and a summary of the key figures from their last 3 years accounts is provided below:

Fiscal Non consolidated GBP31 Dec 2016 (000’s)

Fiscal Non consolidated GBP31 Dec 2015 (000’s)

Fiscal Non consolidatedGBP 31 Dec 2014 (000’s)

Sales Turnover 27,279 42,228 49,322

Profit / (Loss) Before Taxes (54) (1,552) 3,630

Tangible Net Worth 19,605 20,659 22,470

Net Current Assets (Liabilities) 15,464 16,510 17,483

http://www.km.kongsberg.com


WESTHILL, ABERDEEN


RENTAL COMMENTARYSome rental comparisons are highlighted below for ease of reference:

Date Property Tenant Lease Term Rent(per sq ft)

Comments

Jan - 2017 Prime Four Business Park Lloyds Register of Shipping 15.5 years £28.75 5 yearly rent reviews to the greater of OMRV or 3.00% per annum compounded.

Jul - 2016 AB1, Huntly Street HM Courts and Tribunal Services 10 years £25.00 5 yearly reviews to OMRV.

Jan - 2016 Citypark, Altens Wood Group 15 years £25.45 5 yearly rent reviews to the greater of OMRV or 2.50% per annum compounded.

Jan - 2016 Horizon House, Waterloo Quay, Aberdeen DOF Subsea 15 years £28.00 Agreed November 2014. 5 yearly rent reviews to the greater of OMRV or 3.00% per annum compounded.

Jul - 2015 Annan House Amec 10 years £24.50 5 yearly rent reviews to the greater of OMRV or 2.75% per annum compounded.

Jun - 2015 Prime Four Business Park Anderson Anderson Brown 15 years 2 months £28.75 5 yearly rent reviews to the greater of OMRV or 3.00% per annum compounded.

Jun - 2015 AB1 Huntly Street DECC 10 years £26.00 5 yearly reviews to OMRV.

Apr - 2015 The Exchange, Level 5 DNV GL 10 years £25.50 5 yearly reviews to OMRV.

PROPOSALOffers in excess of £19,800,000 (Nineteen Million, Eight Hundred Thousand Pounds Sterling) are sought for the benefit of our client’s heritable interest in the properties, subject to contract and exclusive of VAT.

A purchase at this level provides the following yield profile after purchaser’s costs at 6.25%:

Date Yield

Purchase 7.75%

2022 8.18%

2023 8.98%

2027 9.48%

2028 10.36%

Consideration may be given to the sale of the properties separately or as packages subject to negotiation.

VATVAT will be applicable to the sale of the properties, however we anticipate the transaction will be effected by way of Transfer of a Going Concern (TOGC).


WESTHILL, ABERDEEN

© Crown Copyright 2017. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. © January 2018 Jones Lang LaSalle IP, Inc.

FURTHER INFORMATIONFor further information or to arrange an accompanied inspection please contact:

Janey Douglas

T: 0131 301 6718

M: +44(0)7734 883 046

E: [email protected]

Simon Cusiter

T: 0131 243 2203

M: +44(0)7815 135 222E: [email protected]

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THERMOPYLAE HOUSE, TEEKAY HOUSE & PROSERV … · THERMOPYLAE HOUSE, TEEKAY HOUSE & PROSERV HOUSE ... INVESTMENT SUMMARY ... first and second floors together with 77 parking spaces