Aberdeen building Johnstone House has been acquired by US investors for £5 million as a Granite City office market looks “resurgent”.
Norlin JH said the property on Rose Street was “perfectly placed” to meet a recovery in demand for offices, particularly in the West End nearby newer, prime Grade A offices including the Capitol and Silver Fin.
The area has recently attracted energy giant Shell as well as a number of smaller supply chain companies.
John Fichthorn, one of the lead US investors behind the deal, also expects Granite City property to benefit from a “seismic shift in energy policy” both in the US and UK.
In the US, energy investment has been boosted by President Biden’s Inflation Reduction Act (IRA) which is spurring investment in energy firms transitioning to renewables.
Focus is now firmly on security of supply and faster adoption of renewables; and the Aberdeenshire economy has the skills base to play a leading global role.”
The UK and Scottish Governments have also signalled support for the energy industry.
The was backed by Norlin Ventures, Fishpool Ventures and Norlin Aberdeen US, controlled by Mr Fichthorn.
The investor, a high profile hedge fund manager in the US, said: “We see favourable investment conditions for the UK in general and Aberdeen in particular.
“There has been a seismic shift in energy policy both globally and in the UK.
“Focus is now firmly on security of supply and faster adoption of renewables; and the Aberdeenshire economy has the skills base to play a leading global role.”
In a statement, the firm said Cambridge & Counties Bank also backed the transaction.
Johnstone House ‘perfectly placed’
The five-storey multi-let building had been put on the market at the end of 2022 by real estate consultancy Knight Frank for offers in excess of £5.45m.
James Beeton from Belfast-based Norlin JH said the Aberdeen market was coming back after a “protracted subdued period”.
He said: “Over the past year, Aberdeen’s commercial office market has seen resurgent leasing post a protracted subdued period substantially below five-year average uptake.
“We envisage a shortage of the right type of supply within the city centre, so with an established high quality tenant base already in place and a degree of vacant space to reposition into the market, we felt that Johnstone House was perfectly placed – and ideally located – to meet the growing demand.”
Johnstone House provides 52,378 square feet of office space, one third of which is currently vacant and will be repositioned and brought to market later this year.
Tenants of the building on Rose Street include law firm Ledingham Chalmers and restructuring specialist FRP Advisory.
Norlin was advised on the transaction by Gunnercooke LLP, Savills and Kingfisher Property Finance Limited.
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