HOUSE WESTHILL, ABERDEENPRIME LONG INCOME OFFICE INVESTMENT WITH GUARANTEED RENTAL GROWTH

ON THE INSTRUCTIONS OF

HOUSE WESTHILL, ABERDEEN02

INVESTMENT SUMMARY

Opportunity to purchase a prime, long let office investment, located within Prospect Park, Westhill, Aberdeen

Let to Proserv UK Limited (guaranteed by Proserv Group Incorporated) until 8th November 2033

Passing rent of £549,947 per annum. The lease incorporates five yearly upwards only rent reviews to the greater of open market rent or the minimum rental uplifts. We calculate the 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

Modern office accommodation extending to 24,173 sq ft of over ground, first and second floors together with 65 parking spaces providing an excellent ratio of 1:372 per sq ft

Heritable Interest (Scottish Equivalent of English Freehold)

Offers are invited for the benefit of our client’s heritable interest subject to contract and exclusive of VAT

HOUSE WESTHILL, ABERDEEN03

WESTHILL

M74

M9

M77

A1M8M8

M90

M80M73

M74

M9

M80

A90

A97

A90

EDINBURGH

GLASGOWLIVINGSTON

STIRLING

ST ANDREWSPERTH

DUNDEE

AYR

STRANRAERDUMFRIES

INVERNESS

AWPR

ABERDEEN

Aberdeen is located in the north east of Scotland and is the country’s third largest city.

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 Standard Investments, as well as a strong service sector that includes companies such as HSBC, Barclays, Lloyds Banking Group, RBS, KPMG, Deloitte, PWC and Ernst & Young.

ABERDEEN

HOUSE WESTHILL, ABERDEEN04

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 has 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). Aberdeen was recently included in the top ten places to live and work in ‘The Good Growth for Cities Index 2018’.

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, earlier this year, Total E&P relocated from Altens. Schlumberger, SubSea 7, TAQA, Marsh, Worley Parsons and Technip have enjoyed the location and its amenities for a number of years.

The location of the new Aberdeen FC Football Stadium is at Kingsford near Westhill. This is Scotland’s most modern football stadium and complex and has further strengthened the strategic location and importance of Westhill.

HOUSE WESTHILL, ABERDEEN05

RoadThe 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 than 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. Journey times between Westhill and Aberdeen, the Airport, Altens and the A90 trunk road south have already been significantly reduced with part of the AWPR already open. The AWPR intersects with the main Westhill to Aberdeen Road.

RailAberdeen 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.

AirAberdeen 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.

SeaAberdeen 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.

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.

PARIS2 hours

NLONDO1 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

HOUSE WESTHILL, ABERDEEN06

10

9

8

65

7

4

3

2

1

1012

13

11

1

2

3

4

5

6

7

8

9

10

11

12

13

Site Area

We estimate the site extends to 1 acre (0.4 Ha), measured from Promap.

Situation

Prospect Park is 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 a prominent position within the park. Surrounding high profile occupiers include Total E&P, Subsea 7, Schlumberger, Technip, and TAQA.

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HOUSE WESTHILL, ABERDEEN07

Description

The property comprises a modern office building constructed in 2013 extending 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.

The specification includes:

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.

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 24,173 sq ft (2,245.76 sq m).

EPC

The property has an EPC ‘B’ rating.

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Tenancy

The property is let to Proserv UK Limited (guaranteed by Proserv Group Incorporated) until 8th November 2033. The current passing rent is £559,097 per annum which equates to £23.13 per sq ft and is reviewed 5 yearly to the higher of open market rent or the minimum uplift. We calculate the minimum uplifts in the 2023, 2028 and 2033 rent reviews to be £646,704 per annum, £739,116 per annum and £856,857 per annum respectively.

Covenant

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 Dun and Bradstreet Rating of N2 and a summary of the key figures from their last 3 years accounts are provided below:

Key Financials

31/12/2017(£000s)

31/12/2016(£000s)

31/12/2015(£000s)

Sales/ Turnover 45,038 57,192 85,189

Profit/ (Loss) Before Taxes (14,005) (8,210) (3,903)

Tangible Net Worth (14,493) (1,390) 4,225

Net Current Assets (Liabilities) 49,481 57,661 51,437

Tenure

Heritable Interest (Scottish equivalent of English Freehold).

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RENTAL COMMENTARY

Some rental comparisons are highlighted below for ease of reference:

Date Property Tenant Lease Term

Rent(per sq ft)

Comments

Jan - 2017 Prime Four Business ParkLloyds Register of Shipping

15.5 years £28.755 yearly rent reviews to the greater of OMRV or 3.00% per annum compounded.

Jul - 2016 AB1, Huntly StreetHM Courts and Tribunal Services

10 years £25.00 5 yearly reviews to OMRV.

Jan - 2016 Citypark, Altens Wood Group 15 years £25.455 yearly rent reviews to the greater of OMRV or 2.50% per annum compounded.

Jan - 2016Horizon House, Waterloo Quay, Aberdeen

DOF Subsea 15 years £28.00Agreed November 2014. 5 yearly rent reviews to the greater of OMRV or 3.00% per annum compounded.

Jul - 2015 Annan House Amec 10 years £24.505 yearly rent reviews to the greater of OMRV or 2.75% per annum compounded.

Jun - 2015 Prime Four Business ParkAnderson Anderson Brown

15 years 2 months

£28.755 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.

HOUSE WESTHILL, ABERDEEN

VAT

VAT 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).

PROPOSAL

Offers are invited for the benefit of our client’s heritable interest in the property, subject to contract and exclusive of VAT.

FURTHER INFORMATION

For further information or to arrange an accompanied inspection please contact:

Janey Douglas Simon Cusiter

T: 0131 301 6718 T: 0131 243 2203 M: +44(0)7734 883 046 M: +44(0)7815 135 222 E: janey.douglas@eu.jll.com E: simon.cusiter@eu.jll.com

© Crown Copyright 2019. 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 pur-chasers, 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. © February 2019 Jones Lang LaSalle IP, Inc.ON THE INSTRUCTIONS OF