EnQuest — the UK’s largest independent petroleum exploration and production company — has sold Annan House in Aberdeen to Rockspring Property Investment Managers for £45.1m.
Acquired on behalf of Rockspring’s Hanover Property Unit Trust the six-storey, 120,000 sq ft office block is situated on the site of the city’s former derelict Seafood Park. Annan House, currently fully let on a 20 lease to the Stock Exchange-listed oil company, is part of The Grande estate scheme being developed by the Drum Property Group.
Located in the heart of Aberdeen’s North Dee Business Quarter, the headquarters building is adjacent to Union Square, the city’s newest retail and leisure destination offering major retailers, cafés and restaurants.
Established 48 years ago, Hanover is an actively managed open ended UK focused real estate fund. At the end of June this year the fund had £513m under management and recently achieved a three year out-performance of its benchmark.
Mischa Davis is an associate partner and fund manager at Rockspring. “We believe that the current rent at £24.66 per square foot, the long lease and the quality of Annan House together provide encouraging prospects for growth when oil prices, and therefore the Aberdeen office market, recover as expected,” he commented.
“To maintain its three year out-performance, the fund’s strategy has been to make a number of tactical sales in London and the South East where business plans have been concluded, and to recycle capital into prime regional assets, like Annan House.
“We have seen strong interest in the fund since the beginning of the year, with secondary trading activity of £47m in the fund’s units from 15 clients, demonstrating confidence both in the fund and its strategy,” he added.
Hugh Elrington, a partner and head of UK transactions at Rockspring, said: “As Hanover continues to outperform its benchmark and peers, we are pleased to have sourced another asset which we believe will provide our investors with attractive future returns.
“We will continue to look for opportunities to recycle capital into transactions which we believe present compelling investment opportunities.”
Knight Frank acted on behalf of EnQuest and CBRE advised Rockspring.
Source: Rockspring Press Release
