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Drum Property Group has completed the redevelopment of the former Bank of Scotland at Aberdeen's Holburn Junction.
Drum acquired the property with the assistance of property consultants FG Burnett after both companies agreed the location at the west end of Union Street would be of interest to occupiers following redevelopment.
The ground and basement floors, including a new rear extension, were pre-let to Tesco for their Tesco Express format on a 15 year FRI lease for an undisclosed rental. The Tesco investment has been sold to a private pension fund, advised by Colliers CRE, for £1.425 million.
The first floor office accommodation has been sold to Frontier UK who intend to refurbish and market the suite for lease while the second floor offices has been sold to well known Aberdeen employment lawyer, Lili Hunter Consulting, who has relocated her practice to the site.
Graeme Bone, managing director of Drum Property Group, said: "The closure of the Bank of Scotland branch was sad news as there had been a bank there for many years but it is always satisfying to regenerate a building and we felt the location and building fitted our development model."
FG Burnett advised Drum throughout the project. Director David MacLeod said: "This was a classic development deal where Drum acquired a vacant building, attracted occupiers and have sold on the investments.
"It is great news for this section of Union Street and Tesco Express will be a major boost for Holburn Junction. We were always confident that we would secure occupiers for the offices with the location just a stone’s throw from the prime west end office area but also with all the benefits of being right on Union Street."
Jamie Fergusson, associate director, investment market place, with Colliers CRE added: "There is a strong desire for long let property investments to good covenants and Tesco is top of the list for many private investors. This investment provides safe and secure income on a property which has been recently redeveloped and is in a prominent position on Union Street."
(GK)
