Gatehouse acquires oil and gas HQ offices in Scotland [CPI Financial]Al Bawaba Ltd.
Gatehouse Bank has completed the multi-million pound acquisition of the Bridge View and Consort House in Aberdeen to provide a projected average annual cash yield of 7.5 per cent and a projected IRR of 9.5 per cent over a three year holding period to investors in the transaction.
The 159,170 sq ft property is occupied and fully let to leading oil and gas service provider Petrofac as their North Sea office headquarters, as well as The Scottish Ministers (NHS), for a long lease term of 14 years.
Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank commented, "The Petrofac acquisition maintains our solid reputation in the UK real estate market, to deliver high quality investment opportunities that generate solid returns on behalf of our investors. Gatehouse Bank's team of real estate experts sourced an excellent covenant in a major oil and gas provider and favourable real estate lease terms and conditions, to create an attractive offering which investors have capitalised on immediately."
Abdulaziz Al Duweesh, Executive Vice President and Head of Wealth Management at Gatehouse Bank added, "The completion of Petrofac showcases our strengths in reaching a diverse group of investors, which include those from Kuwait, Saudi and Qatar. Gatehouse continues to meet their investor criteria to provide secure, long term returns on real estate investment offerings from the UK market, and takes a leading and competitive advantage in this space with our enviable transaction track record of more than $500 million in acquisitions and two successful realised investments."
Aberdeen sits at the heart of Europe's oil and gas industry, which over the over the past 25 years has continued to drive the city's performance as a high-prosperity, high performance market. As such, Aberdeen is recognised as an important driver of the wider Scottish and UK economies and, according to a leading independent report, the Centre for Cities Outlook 2012, it is one of the most economically successful UK cities over the medium term.
Adam Cavanagh, Head of Real Estate at Gatehouse Bank, commented, "The Aberdeen office market has seen a greater take up of space last year than any other key regional centre outside the south east, and is likely to remain buoyant for the foreseeable future. The severe lack of quality, large floor plated Grade A space, has caused rental values to rise significantly. We understand that investors are typically seeking prime and long income deals with a strong tenant and assured security of income, and we are pleased that we have delivered a strong result for Gatehouse Bank investors."