Salvesen Tower was once a towering symbol of Aberdeen’s thriving oil and gas industry.
Built in the 1970s, the quayside skyscraper was filled with booming businesses from top to bottom – and free spaces were hard to come by.
But when the downturn hit, it became an equally potent sign of the times…
As firms flitted, the once bustling block was earmarked for demolition.
And perhaps it would have been indeed reduced to a pile of rubble had it not been for an 11th hour auction that came to be its salvation.
Once valued at £5 million, the Blaikie’s Quay office block was sold for just £20,000 in 2018 as the number of people rushing to snap up a unit in it hit an all-time low.
But where some saw an impossible task, one Aberdeen property group saw opportunity.
The owners of Salvesen Tower have now revealed how they have managed to turn the building’s fortunes around, including:
- The dire state Salvesen Tower was in when the Glaswegian group took it over
- The seven-figure amount they spent on bringing the office block up to scratch
- How they would wake up at 5am to commute to the Granity City every day while they were trying to find takers for the offices once again
- And what they have planned next for the harbour site
‘Never judge a book by its cover’
Before arriving at the newly named Union Point, I had envisioned it as a decaying remnant of Aberdeen’s oil days gone by.
After all, I’d read the reports about the “ridiculous” sale price of this “concrete shell”.
But you shouldn’t judge a book by its cover.
Standard Real Estate (SRE) have decades of experience turning around neglected office space in the Granite City, and they saw Salvesen Tower as a “tempting challenge”.
And this is how their mammoth efforts to bring it back to life began…
SRE director Hamish Munro and consultant John Grewar greet me with a firm handshake in the now swanky reception.
In this surprisingly modern setting, we sit down and they explain how the Glasgow-based group came to invest so heavily in Aberdeen.
“I’ve owned property in Aberdeen since 2004, so that’s 20 years now,” Hamish recalls.
“I was still associated with the city prior to that, I was valuing property in Aberdeen for banks and private investors.
“So, I’ve always had that connection.”
The Glaswegian has seen it all when it comes to Aberdeen’s commercial retail market, and was actually very close to pulling out following the downturn in the oil industry.
“I sold quite a lot of the properties we had in Aberdeen in 2014,” he adds with a smile.
“But at the time, Aberdeen values were as such that you couldn’t buy in.
“That’s when we saw Salvesen Tower coming up for auction – and decided that we should have a look at that.”
And that’s when SRE’s biggest venture into the Granite City really began…
How did SRE get involved with Union Point?
The winner of the auction still remains a mystery, but just weeks after, SRE acquired the monument.
Union Point – as the building is usually referred to – was a far cry from the modern office block it now is when the group first took it on, however.
“When we first heard about Salvesen Tower, it was a very much unloved building where it had absentee owners and a lack of tenant interest,” Hamish tells me.
“I believe the building had effectively been earmarked for disposal for four to five years prior to when it was actually sold.
“And as a result, there had been no new tenants attracted, no capital expenditure.
“One of the big problems we had was that so many people knew the building but hadn’t actually been in it… So, people had a perception of what the building is like.”
‘We were up at 5am each day to make this a success’
As we delve into the past of Salvesen Tower, I’m ushered upstairs for a tour of the rebranded Union Point to see all of the changes they have done so far for myself.
We head up the lift to one of the units overlooking the harbour.
Looking at the stylish and modern design, it’s hard to believe that SRE got this building for such a low price.
But it wasn’t as easy as signing the cheque and watching the money roll in, Hamish tells me.
“We have probably spent £1.5 million, if not £2m on the building,” Hamish reveals.
“Revitalising a building like this was serious hard work to begin with – we had to renew all the boilers, all the lifts, we’ve done all the right things for it.”
And with the pair both still living in Glasgow, that meant a lot of long days and commitment to bring Union Point back to its former glory.
John tells me they would often leave their homes at 5am, to commute to the Granite City, often not getting back until the street lights came on.
“We come to Aberdeen twice a week at the moment,” the 59-year-old says.
“During the early days we were quite happy to drive up here just to do a letting of a single office, to get people back into the building.”
‘The work to turn Union Point around has paid off’
Heading back down to the lobby, we take a look into one of the most radical changes made by the new owners – The Food Project.
Situated right next to reception, the cafe is on hand to feed any and all of the hungry workers at Union Point.
But what stands out is that this vibrant venue used to be one of Aberdeen’s many traditional harbour pubs.
The Quarterdeck Bar had served plenty of pints before closing its doors and relocating in 2017, leaving another empty space in the then concrete shell.
Leading me into the bustling cafe, Hamish admits: ““This unit was a former pub that had definitely seen better days.
“It was in a very sorry state, but still had potential because the structure itself was fine.
“But the work to turn it around has paid off, because people have come here, we’re about 90% full at the moment.”
What’s next for Union Point bosses?
Finishing up our tour, I ask the property experts what’s next for SRE in Aberdeen.
Firstly, John reveals they have made massive progress on 50 Huntly Street, with one huge, unnamed tenant moving in soon.
And just down the road, they have taken on their “biggest project yet” – transforming 234 Union Street as “Aurora”.
The list goes on and on, the duo says.
“Stay tuned,” Hamish smiles.
“Our quest to give abandoned Aberdeen buildings a new lease of life very much continues.”
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