Legal & General Property (LGP) has purchased and forward-funded the development of a 335,000 sq ft (31,100 m2) headquarters office for Aker Solutions in Aberdeen for a total of over £127 mln (€162 mln).

Legal & General Property (LGP) has purchased and forward-funded the development of a 335,000 sq ft (31,100 m2) headquarters office for Aker Solutions in Aberdeen for a total of over £127 mln (€162 mln).

The deal, which was carried out by LGP on behalf of its annuity fund, represents the largest single office deal ever to take place in Aberdeen. The purchase amount reflects a net initial yield of 5.75%.

The property constitutes the first phase of Aberdeen International Business Park which is being developed by the Abstract Group on behalf of Norwegian investment company Aker.

The first phase comprises three interlinked buildings totalling 336,369 sq ft of Grade A office accommodation, alongside 1,197 car parking spaces. Aker is taking the property on a 20-year lease with options to extend the term for three further five-year periods. The tenant is due to move into the asset in February 2015 and will pay an annual rent of just under £7.74 mln.

LGP said that further phases are expected to include a series of office buildings and at least one hotel, as the site has planning consent for around 1 million sq ft of accommodation.

Commenting on the sale, Mark Glatman, CEO of the Abstract Group, said: 'This purchase by LGP is a huge endorsement of the Aberdeen market and this development in particular. When completed, this building will offer the best quality and most environmentally friendly accommodation in Aberdeen.'

Dowley Turner Real Estate and Cushman & Wakefield acted for Legal & General. Abstract was unrepresented.