A historically significant building in Aberdeen, 1 Queen’s Cross, remains on the market after its asking price was reduced to £1.95 million from an initial £2.1 million. The price adjustment reflects a prevailing cautious sentiment within the city’s commercial property sector, despite the asset offering a strong income stream.
The prominent West End property, which Ryden describes as “one of Aberdeen’s most prominent and cherished landmarks,” has been leased to Clydesdale Bank, operating as Virgin Money, since 1995. This long-standing tenancy offers an annual rental income of £225,250, secured by a lease agreement that extends until April 2030.
Ken Shaw, an investment group partner at selling agent Ryden, acknowledged that while the property has generated interest, potential investors are currently holding back from firm commitments. “There has been one or two people looking at it, but no firm offers yet,” Mr Shaw stated. He added that this situation is “not untypical of a few situations around the city,” indicating a broader trend in Aberdeen’s commercial market where investor uncertainty persists, particularly within the office sector, despite an overall increase in investment activity in the region.
The building, constructed in 1865, boasts a rich history, originally designed for George Washington Wilson, the first Photographer Royal. It also notably housed Dizzy’s, a well-regarded local venue, for over two decades before Clydesdale Bank took occupancy. Located at the junction of Albyn Place and St Swithin Street, the area is home to several major financial institutions, including Royal Bank of Scotland, Bank of Scotland, Johnston Carmichael, and Savills.
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Measuring 8,515 sq ft, the property comprises lower ground, ground, first, and attic floors, featuring an “outstanding” single-let office space alongside a modern extension fitted out as a banking hall. Furthermore, it benefits from 32 rear parking spaces.
Despite the market’s cautious approach, Mr Shaw highlighted the financial attractiveness of the investment. “It’s very high yielding in terms of your capital and the income coming back,” he commented. He further noted that “Interest rates have been going down for money in the bank, so the high yield is an attractive feature,” and emphasised the security offered by a bank tenant, stating, “And obviously being rented out to a bank, clearly the income is very secure.”
The remaining lease term, just under five years, provides a “secure income up to that point,” according to Mr Shaw, who also suggested the possibility of a landlord negotiating a new lease. He pointed to the resilience of banks in the West End, contrasting it with city centre closures: “Within the banking sector, there obviously been closures further down into the city centre, but in the West End it’s positive, the banks have remained open.”
