A strategically positioned petrol station at one of Aberdeen’s busiest city centre junctions has been brought to market for £2.35 million.
The filling station at North Esplanade West, situated beside the River Dee and adjacent to The Queen Elizabeth Bridge, represents one of the few remaining city centre fuel retail opportunities in Aberdeen. The property is being marketed by Shepherd Commercial as a prime investment opportunity targeting both local and national investors seeking long-term income streams.
“We are hoping it appeals to local or national investors looking for a long-term income. There’s a strong tenant in place,” said Mark McQueen, partner at Shepherd Commercial.
Strong Fundamentals Support Investment Case
The investment fundamentals appear robust, with Motor Fuel Limited – trading as Motor Fuel Group (MFG) – occupying the station under a full repairing and insuring lease extending until April 2041, leaving over 15 years unexpired. MFG operates as the UK’s largest independent forecourt operator, managing more than 1,200 stations nationwide under brands including BP, Shell, Esso, Texaco, and JET.
The property generates £140,000 annually in rental income, with Consumer Price Index-linked increases capped at 3% and floored at 1%. The next rent review falls in April 2026, with projected rental income rising to £162,310. At the asking price, the transaction reflects a net initial yield of 6.5%, increasing to 7.9% by 2036.
Aberdeen Commercial Property Market Gains Momentum
This petrol station listing emerges against a backdrop of significant commercial property investment growth across Aberdeen. The city experienced a remarkable resurgence in 2024, with total investment volumes reaching £357 million – representing a threefold increase from 2023 and more than double the decade average of £160 million.
The surge followed a period of declining asset values that created attractive yield opportunities as the market found new pricing levels. Aberdeen accounted for 24% of all commercial property deals in Scotland during the first half of 2024, with the region continuing to attract over £100 million of investment throughout the year.
International investors have shown particular interest in Aberdeen’s commercial market, representing 62% of investment volumes in the first half of 2024. Over 75% of office investment originated from overseas buyers, including investors from the United States, Europe and the Middle East.
Strategic Location Advantages
The North Esplanade West location offers substantial competitive advantages, positioned beside Union Square shopping centre, Aberdeen Harbour, and several major office developments. The site benefits from high footfall and traffic flow along one of the city’s primary transport corridors.
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The broader North Dee area is experiencing significant development activity, with the North Dee Quarter identified as a transformational opportunity site in the city’s masterplan. The 2.17-hectare development area aims to create vibrant mixed-use space supporting Aberdeen’s evolution into the “Net Zero Energy Capital of Europe”.
Aberdeen’s commercial property market benefits from the city’s diversification beyond traditional oil and gas sectors, with growing strengths in healthcare, life sciences, digital technologies, food, drink, agriculture, and tourism. The city consistently ranks among the UK’s top 10 destinations for foreign investment, with regional GVA per capita and average earnings regularly among the nation’s highest.
