A portfolio of industrial land in Aberdeen, boasting a combined value of £3.35 million and offering income streams extending beyond a century, is slated to go under the hammer next month. The assets present investors with long-dated, low-management industrial income for nearly a hundred years.
Central to the portfolio are two sites with 110-year leases secured against Stena Drilling Ltd, an offshore drilling contractor and a subsidiary of the Swedish-owned Stena AB. Stena Drilling has committed to ground rent payments on these properties until May 2136. These leases notably feature no break options and incorporate five-yearly upward-only rent reviews, providing a robust long-term income outlook.
Auctioneer Acuitus, a leading commercial property auctioneer based in the UK, has highlighted the exceptional longevity of the income these properties provide, stating they offer “a rare level of income stretching well into the next century.”
The larger of the two Stena-leased properties is situated at Greenbank Crescent within the established East Tullos Industrial Estate, approximately 1.5 miles south of Aberdeen city centre. This 3.6-acre site includes 2,722 square metres of industrial accommodation and currently generates an annual income of £109,920. Its guide price for the auction is set at £1.75 million. An adjacent 2.69-acre plot, also located in East Tullos and utilised by Stena Drilling for pipe storage, yields £69,770 per annum and carries a guide price of £1.15 million. The East Tullos area is a well-regarded industrial hub, home to occupiers such as Biffa, NorDan, and Arnold Clark.
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A third significant asset in the portfolio is located at Silverburn Place on the Bridge of Don Industrial Estate, another well-established industrial area in Aberdeen. This property, extending to over one acre, is let to Domeline Ltd until May 2111, also without any break options. Comprising 830 square metres of light industrial and showroom accommodation, it generates an annual income of £26,150 and has a guide price of £450,000.
Charlie Powter of Acuitus commented on the appeal of such offerings, stating: “Heritable industrial ground rents are highly sought after, especially when benefiting from strong covenants and prime location according to its sector.”
The auction is scheduled to commence at 1pm on 6 May. Bidders will have the option to participate online, by telephone, or via proxy, as the event will be live-streamed.
