21/05/2013G+S Acquires £13.75m office investment on behalf of Aston Property Ventures – May 2013 Riverside House, Riverside Drive, Aberdeen

Scottish based property firms Graham + Sibbald and Ambassador Group jointly advised Aston Property Ventures on the acquisition of this prominent office investment and will have an on-going advisory role in the management of the asset.  The property was acquired for £13.75m from Rockspring Property Investment Management.

Aston Property Ventures was attracted to this modern grade A office building extending to c.52,000 sqft and acted quickly to complete the transaction.  The investment is located within Aberdeen’s expanding Riverside Business Quarter, where rents have recently achieved £29 per sq ft.

Sandy Gilmour, Investment Specialist at Graham + Sibbald, commented on the acquisition:

“We are delighted to have secured this property swiftly on behalf of our client and we are actively targeting other opportunities that offer similar asset management opportunities. Aberdeen continues to attract capital and investment from a wide variety of sources and the underlying fundamentals of the office market in terms of supply and demand create opportunities for rental growth which we believe can be worked through via active asset management.”

Tim Keig, Managing Director of Aston Property Ventures, said:

“Acquiring this high quality investment asset is consistent with our growth strategy and demonstrates our flexible and opportunistic approach to property acquisition.  At the core of our business is an experienced and proficient team and, with ready access to capital, we will continue to build a strong portfolio whilst adding value during the investment process and on-going asset management.  We are grateful to Ambassador Group and Graham + Sibbald for their considered guidance, which assisted us to move swiftly to secure the deal.”

Graham & Sibbald’s  Building Consultancy Team was also involved in providing pre-purchase survey due diligence.  

28/02/2013Graham + Sibbald's retail success

Graham + Sibbald Chartered Surveyors are delighted to announce the successful sale of 16 Scott St, Perth. 

Acting on behalf of the vendor, Graham + Sibbald successfully disposed of the property at an asking price of offers in the region of £270,000.

Extending to 115 sq m (1240 sq ft), the property comprises a mid-terraced retail unit previously occupied by Blockbuster.  Located just off High Street, Scott St is a popular secondary retail location supporting a mixture of national and local occupiers.

Garth Davison, Commercial Surveyor at Graham + Sibbald’s Perth Office commented: “Whilst the retail property sector continues to prove challenging this transaction suggests that good secondary locations are still commanding a strong interest.  The appeal of this location seems to be its close proximity to High St with Greggs having recently relocated to the street.”

28/02/2013Graham + Sibbald's industrial double

Graham +Sibbald Chartered Surveyors can confirm 2 new industrial lettings in Perthshire. 

Acting on behalf of Perth and Kinross Council, Graham + Sibbald have secured new leases at the Crioch Business Centre, Crieff.

Unit 2 at the estate was let to Loft (Interiors) LTD for an initial rent of £4000 per annum on a 3 year lease with units 6 and 7, being let to C.E. Electrical, for an initial period of 3 years at a passing rent of £6,600 per annum.

Commercial Surveyor Garth Davison based at the Perth Office of Graham + Sibbald commented:  “We are delighted to have concluded yet another letting on behalf of Perth and Kinross Council.  The market continues to be strong for these small units let on flexible terms, which is key to most deals in the current climate.  With Unit 5 currently “under offer,” once concluded this will see the estate close to full occupancy.  ”

Perth and Kinross Council have varying sized industrial units within their portfolio and further information on these can be obtained through sole letting agents Graham + Sibbald.

21/02/2013GS residential review for January 2013

2013 got off to an encouraging start with many Home Report replacements coming through for deals done early in the New Year. This confirms our view that buyers are still active and consequently there is a very real risk of those sellers acting on advice to wait until Spring before marketing missing out and then finding themselves competing with other properties listed by those who are like minded.
Kevin J MacDonald MRICS, Associate, Inverness Office

25/01/2013Property in Profile 2013 - Edition 53; Issue 10

Please find enclosed the latest edition of Graham + Sibbald 's Newsletter.

Click here: Property in Profile 2013 - Edition 53; Issue 10

16/01/2013The Watermark - Edinburgh

On the instructions of RSM Tenon Recovery, Graham + Sibbald has successfully leased and forward sold ‘The Watermark’ on East Cromwell / Coburg Street, Edinburgh. 

The Watermark comprises 30 flats over two blocks.  Two flats were sold privately pre G+S appointment and the remaining 28 flats were 85% complete when brought to the market.  There was strong development and investment interest to acquire the units in their existing condition but having considered all the options, our advice to optimise realisation was to complete the flats subject to agreeing a new 10 year lease to Hillcrest Housing Association Ltd for let at Mid Market Rents.  The resulting investment was sold to a private London based property company.

Ross Wilson, selling agent at Graham + Sibbald says:  “The mid-market rent model is targeted towards young professionals and individuals in full time employment without the required collateral to facilitate a step onto the property ladder.  It is aimed at bridging the gap between social housing and private landlord rental values.  This letting to Hillcrest Housing Association Ltd created an institutional type Investment with secure, inflation proof income spread over a 10 year term to an organisation with a strong covenant.  Residential investment opportunities such as this are proving very popular with a range of investors.  This is primarily due to the discount offered when buying in bulk with the prospect of long term capital growth.  We are witnessing a radical change in investor’s attitudes towards residential property with many institutional investors looking into the creation of bespoke residential funds”

The purchase price achieved of £2.9 million reflects a strong net initial yield of 5.21%.

Emma Garry of Hillcrest Housing Association Commented “Edinburgh city faces a large housing shortfall and the number of those in housing need is continuing to increase.  With reduced government subsidy available, Hillcrest has been looking at alternative ways to provide new affordable housing which is not subsidy reliant.  The Watermark deal brings with it Hillcrest Housing Association’s first Mid Market Rent homes in Edinburgh, something we are really pleased about.  But they are delivered without any government subsidy. This is the really exciting aspect of the model.  We believe that this model can be replicated to provide more affordable housing without subsidy and we hope to continue to provide housing on this basis in the future”.

Graham + Sibbald and Maclay Murray & Spence acted for the RSM Tenon. 
Lambert Smith Hampton and DLA Piper actor for the purchaser.
Thorntons WS acted for Hillcrest Housing Association