FCPT buys pre-let Aberdeen office projects

F&C Commercial Property Trust (FCPT), advised by F&C REIT Asset Management, has acquired four pre-let headquarter office projects in Aberdeen for £94 mln (EUR 113 mln), representing an overall net initial yield of 6.8%.

The buildings, located in Aberdeen's Prime Four Business Park development in Kingswells, are being developed by Drum Property Group and are expected to be completed between October and November 2013. They will comprise 300,000 sq ft (27,871 m2) of headquarters office space providing the first phase of the business park.

Blocks 1 and 2, which each comprise 100,000 sq ft of office space, have been pre-let to Nexen Petroleum UK and Apache North Sea, for terms of 15 years. Plots 3 and 4 will comprise an office block and a global training centre which will, in aggregate, amount to 100,000 sq ft. These blocks have been pre-let to Transocean Drilling UK for a term of 20 years, with a guarantee from Transocean Inc. All leases provide for rent reviews to the higher end of open market value or 3% per annum compounded.

'These purchases represent strong investments at a competitive yield and will enhance the income attributes of the F&C Commercial Property Trust and complement the existing portfolio,' said Richard Kirby, Director of Property Funds and Fund Manager of the F&C Commercial Property Trust.

Cushman & Wakefield acted on behalf of FCPT, whilst Ryden and FG Burnett acted for the vendor.