BLACKBURN AB E R DE E N

FOR SALE PRIME INDUSTRIAL INVESTMENTABERDEEN

1 WESTPARK, BLACKBURN, ABERDEEN AB21 0BP

Executive Summary

• Prime new build long income industrial investment

• Located in Aberdeen, one of the UK’s most prosperous cities and a global energy hub

• Prominent, accessible location

• Let to Reservoir Group Ltd who have a Dun and Bradstreet rating of 5A2

• Secure long term income of 15 years

• Initial rental of £195,000 per annum

• Guaranteed rental performance with 5 yearly rent reviews to OMRV or 2% pa compounded

• Heritable interest ( Scottish equivalent of English freehold )

• Offers in excess of £2.54 Million, exclusive of VAT, are invited for our client’s heritable interest, reflecting a net initial yield of 7.25% after allowing for purchaser’s costs of 5.8%

• Forward commitment to purchase

• Completion March 2015

Aberdeen - Global Business Centre

Aberdeen is one of the UK’s success stories and is recognised internationally as a global centre of excellence in the energy industry.

It is one of the most prosperous cities in the UK and the world’s leading energy companies have major regional HQs in Aberdeen. BP, Shell, Total, Chevron, Conoco, Marathon, Talisman, Nexen, Apache, Centrica, CNR, TAQA and British Gas all have major operations and are supported by a network of international service companies such as Halliburton, Baker Hughes, Schlumberger, Transocean, Wood Group PSN, Petrofac, Aker, Technip, Amecand Subsea 7.

The diversity of the city’s economy includes global HQs for Aberdeen Asset Management and First Group, together with a service sector that includes HSBC, Barclays, RBS, Lloyds, Deloitte, KPMG, E&Y, Simmons, Pinsent Masons, Brodies, Maclay Murray and Spens and Cameron McKenna.

There is a cosmopolitan population of approximately 220,000, including 30,000 students at Aberdeen University and Robert Gordon University, with a regional catchment population of approximately 500,000.

BlackburnIndustrial

Estate

Dyce Aberdeen City

A96

To WesthillTo Inverurie

From WestparkAberdeen Airport 5.3 milesAberdeen City Centre 9.5 milesInverurie 8.2 milesWesthill 6.5 milesKintore 4.4 miles

Aberdeen Western Peripheral Route

Aberdeen

A90

A980

A93

Inverurie

Kintore

PeterculterCove

Portlethen

Stonehaven

Banchory

Kingswells

Dyce

Bridge of Don

Westhill

Blackburn

A90

A90

A96

DyceDBlackburn

Archer

Location

Westpark is located in Blackburn, a high profile residential and commercial location on the A96, the main arterial route between Aberdeen and Inverness. Blackburn is approximately 5 miles west of Dyce and Aberdeen Airport, one of Aberdeen’s key commercial locations.

Aberdeen Airport provides connections to all major UK airports and many European destinations such as Paris, Frankfurt, Amsterdam, Stavanger and Dublin.

The location will be further enhanced by the Aberdeen Western Peripheral Route, due for completion in 2018, with a main junction being planned at the interchange of the A96 and Dyce Drive.

Westpark is immediately adjacent to the Archer Oilfield HQ, which was funded by the BP Pension Fund and other occupiers in Blackburn include Wireline Engineering, JCE Group, XL Group, Tricore, Micron Eagle and MTM Construction.

Tenancy

The property has been pre-let to Reservoir Group Limited for a term of 15 years from completion at an initial rent of £195,000 per annum. There will be 5 yearly upward only rent reviews to the higher of open market value or 2% per annum compounded.

The lease is on full repairing and insuring terms. At expiry the tenant does not require to remove the internal partitioning provided by the landlord as part of the specification.

Tenant

Reservoir Group Limited were acquired by ALS in 2013 for circa $530 Million and rebranded as ALS Oil and Gas.ALS dates from 1863 and is a global leader in analytical laboratory and technical services solutions. They trade on the Australian Stock Exchange and employ more than 13,000 people in 55 countries.

Reservoir Group is a global provider of specialist oil and gas services and equipment that assists with the evaluation, development and optimisation of oil and gas discoveries.

They have a Dun and Bradstreet rating of 5A2, with a net worth for the year end 31st March 2014 of $126.19 Million.Further information is available on www.alsoilandgas.com

Description

The property is under construction and is due for completion in March 2015. It will comprise a detached workshop and offi ce/laboratory building with an external concrete yard, hardcore yard, car parking, landscaping and security fence.

Construction is of steel portal frame, full height insulated wall cladding, insulated composite roof panels and aluminium double glazed windows.

The offi ces are arranged over two fl oors and provide raised access fl oors, 4 pipe VRV comfort cooling and a lift.The laboratory areas have a painted power fl oat fl oor fi nish.

The workshop will have a reinforced concrete fl oor slab, two5m x 5m electrically operated roller shutter doors, eaves height of circa 7.5m and high bay lamps.

The yard will be of reinforced concrete with a hardcore yardto the rear of the building, together with 32 car spaces on alock-block surface.

The overall site area is 0.95 acres ( 0.38 hectares).

The gross internal areas will be as follows :

Ground Floor Offi ces 2,917 sq ft (280.0 sq m)

First Floor Offi ces 2,398 sq ft (222.8 sq m)

Ground Floor Laboratory 1,363 sq ft (126.6 sq m)

First Floor Mezzanine 1,911 sq ft (177.5 sq m)

Workshop 7,112 sq ft (660.7 sq m)

Concrete Yard 7,416 sq ft (689.0 sq m)

Hardcore Yard 926 sq ft (86.0 sq m)

The offi ces are analysed at £18.50 sq ft ; laboratory at £12.00 sq ft ; mezzanine at £3.00 sq ft ; workshop at £9.00 sq ft and concrete yard at £1.50 sq ft.

Whilst every care has been taken in the preparation of these particulars and they are believed to be correct, they are not warranted and should not be taken to form part of any contract. Any purchaser or lessee should satisfy himself as to the correctness of each of the statements contained in these particulars. The owner of the property does not make or give and neither the agents nor any person in their employment has any authority to make or give any representation or warranty in relation to the property described in these particulars.

FG Burnett Also at:33 Albyn Place Queens HouseAberdeen 19 St Vincent PlaceAB10 1YL Glasgow G1 2DT T 01224 572661 T 0141 285 7980F 01224 593496 F 0141 248 5821

Further Information

Please contact the sole agents: David MacLeodT 01224 597527M 07771 923411E dmacl@fgburnett.co.uk

Tenure The property is held on a heritable title, the equivalent of English Freehold.

Aberdeen Industrial Market

Aberdeen continues to benefit from one of the best industrial occupational markets in the UK. Demand for new, high quality accommodation reflects the long term confidence in the market and the need to provide modern facilities for staff, clients and business requirements. Major energy sector clients such as BP, Total, Emerson, Schlumberger and Asco have all committed to significant new industrial facilities. The level of pre-let activity is exceptional and speculative development is being rewarded with competitive interest in units.

Aberdeen Investment Market Aberdeen is attracting a wide range of investors, from UK funds to international investors, reflecting the high level of occupier demand and the long term confidence in the energy sector.The investment market appreciates the international dimension of the Aberdeen economy and recent major purchasers include L&G, Ignis, Lasalle, CBREI, Royal London, CCLA and BP Pension Fund.

Capital Allowances

The purchaser will have the benefit of capital allowances at the date of sale. Further information is available on request.

Proposal

Our client is seeking offers in excess of £2.54 Million, exclusive of VAT, for their heritable interest in the property, subject to and with the benefit of the lease.

They are seeking a forward commitment to purchase on completion, targeted for March 2015.

A purchase at this level reflects a net initial yield of 7.25%after allowing for purchaser’s costs of 5.8%.

Vat

The property has been elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

Aberdeen Industrial Investments

Date Property Purchaser Price NIY Tenants Comments

July 2014 Artic House, Noordzee £3.50m 5.50% Reel Ltd Modern unit developed in 2009. Kirkton Drive, Dyce Helicopters 10.5 years term certain. 5 yearly rent review geared to RPI.

July 2014 Kirkton Drive, F&C Reit £4.10m 5.90% Siemens Plc Modern unit. 11 year term certain. Raiths Industrial 5 yearly rent reviews reflecting Estate, Dyce growth of 2% per annum compounded.

July 2014 Badentoy Avenue, F&C Reit £2.88m 6.45% Downhole New build facility. 15 years term Badentoy Park, Products Ltd certain. Rent reviews 5 yearly Portlethen to the higher of OMRV or 3% per annum compounded.

July 2014 Peregrine Road, Aberdeen £9.80m 6.13% Forum Energy Forward funding. 15 year term Westhill Property Technologies certain. Rent reviews 5 yearly Investors UK Ltd to the higher of OMRV or 3% per annum compounded.

Mar 2014 Crathes Building, BP Pension £8.00m 6.98% Aker Business Single let. 1990’s facility. 3.5 years Howemoss Ave, Fund Services Ltd term certain. Kikhill

Feb 2014 Bruce Facility, Royal London £7.47m 6.00% Smith International Single let. Modern facility 12.5 years Badentoy Avenue, (North Sea) Ltd term certain, 5 yearly rent reviews Aberdeen reflecting growth of 2% per annum compounded.