March 3, 2016
Two new tenants have been secured for Aberdeen Asset Management’s AB1 office complex in the heart of Aberdeen city centre.
The development was officially re-opened earlier this year after a multi-million pound refurbishment project, undertaken in a joint venture with Manse LLP, was completed on the Huntly Street site formerly known as Langlands House.
The Oil & Gas Authority (OGA) became the first tenant when it took occupancy in 2015 and the organisation will be joined by two further Government agencies.
The Crown Office and Procurator Fiscal Service (COPFS) has taken 10,500 sq ft of first floor space whilst the Department of Communities and Local Government, represented by Peter Fraser of Bilfinger GVA, will occupy 7,800 sq ft on the second and third floors to house staff from the Department of Energy and Climate Change. Both organisations have signed a 10-year lease.
Knight Frank and joint letting agent Ryden are reporting strong interest in the remaining 17,000 sq ft of office accommodation, despite a backdrop of challenging conditions in Aberdeen’s commercial property market due to the downturn in the oil and gas industry.
Michael Clements, of landlord Aberdeen Asset Management, said: “Although demand from the energy sector has clearly diminished, our experience with AB1 has demonstrated that there is potential in the office market. Together with the Oil and Gas Authority, the new occupants create a strong long-term tenant base and that will support the on-going marketing of the remaining space.”
David Mitchell, managing partner of Manse LLP, added: “We are delighted to have concluded these two deals, representing a significant step towards the goal of ensuring AB1 is fully let.”
The development of AB1 included the addition of a new three-storey glazed entrance area alongside significant investment in upgrades throughout the building to create a modern, open plan office space, the contemporary building benefits from a desirable city centre location along with extensive amenities as well as on-site parking.
Matt Park, a senior surveyor in Knight Frank’s Aberdeen office, said: “Whilst our own research has highlighted the high level of supply, with more than two-million sq ft of office accommodation currently available in Aberdeen, Knight Frank has always maintained there will continue to be movement and the team is working hard on behalf of our clients to identify opportunities.”
Totalling 48,500 sq ft of office accommodation, AB1 offers open plan suites from 5,000 sq ft. Further information on the project is available at http://www.ab1aberdeen.com.