A landmark Aberdeen office building that was auctioned off for just £25,000 following the oil price downturn of 2016 is expected to be fully occupied this year after a remarkable turnaround in its fortunes.
Union Point, formerly Salvesen Tower, has undergone a major transformation.
It is now 95% let under its current owner, Standard Real Estate (Union Point).
It may have taken three years to get to the point where the building is nearly full, but a lot of that can be put down to the pandemic and the uncertainty it caused for a lot of occupiers.”
Matt Park, partner, Knight Frank.
Occupying a prominent location on Blaikie’s Quay , overlooking the harbour, the building is home to tenants include HM Revenue and Customs, the DVLA, and several shipping companies, among others.
But three years ago the office tower was nearly empty and in 2018 it was put on the auction block for just a fraction of the £5 million it had previously been worth.
It has since been refurbished, re-branded and re-launched to the letting market through joint agents Knight Frank and FG Burnett.
Budding tenants – both sole traders and larger organisations – are being offered modern space from 150-3,600sq ft on flexible terms.
Standard Real Estate is also offering bespoke fit-outs and lease terms ranging from six months to five years.
Hamish Munro, director at the firm, said: “Having been actively involved in the Aberdeen office market for in excess of 15 years, we understand it is different to other Scottish office locations.
“With the acquisition of Union Point, it was our intention to create affordable quality space on flexible lease terms for the local market, learning from our experience of similar (properties) in other locations.”
Merchant Exchange next in line
Mr Munro added: “Whilst the pandemic has been a setback, it is now very rewarding to see the space filled with vibrant and enthusiastic local and national businesses.
“We have greatly enjoyed meeting them all to create space to suit their needs, wherever possible.
“We are now looking forward to working with Matt (Park) at Knight Frank and his joint agents at FG Burnett on the next project at Merchant Exchange, where we hope to provide more local businesses with quality office space, offering suites from 500sq ft to 3,000sq ft and any combination up to 16,000sq ft.”
Mr Park, partner with Knight Frank in Aberdeen, said: “Standard Real Estate has done a fantastic job with Union Point over the past few years.
“The team has been very flexible and hands-on with its approach to the building, proactively working with tenants to make sure they get what they need from their space.
“Tenants can have a fit-out commissioned and be in their office in as little as a week.”
There is already interest being shown in the remaining space at Union Point, Mr Park said.
Mr Park added: “It may have taken three years to get to the point where the building is nearly full, but a lot of that can be put down to the pandemic and the uncertainty it caused for a lot of occupiers.
“But, as more occupiers in Aberdeen return to their offices and look for flexible, quality space, we expect to see more demand come back to the market.”
Meanwhile, a former pub next to Union Point – the old Quarterdeck Bar and Diner – is being converted into a new business lounge and cafe, with work expected to be completed within weeks.
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