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Wednesday, February 06, 2024

Gladman Developments start work on speculative office development in Aberdeen

Gladman Developments has started work on the first phase of a £20 million, 150,000 sq ft speculative office development in Aberdeen, which it believes will help solve the shortage of purpose built office accommodation in the city and help to create up to 1,500 new jobs.

The UK's largest speculative developer of office and industrial and distribution accommodation has started work on the 80,000 sq ft, first phase of Abercrombie Court on a 10 acre site at Arnhall Business Park, Westhill, to the west of Aberdeen city centre.

Abercrombie Court will consist of a mix of office buildings of 2,250 sq ft and 5,125 sq ft, as well as one stand alone building of 25,500 sq ft. Unusually for the market, the buildings will be available for both lease and sale. A building of 5,125 sq ft has already gone under offer.

According to Susan Pegg, Development Manager in Gladman's Scotland office based in Livingston, this development will help relieve the present shortage of good quality accommodation in Aberdeen. Mrs Pegg says: "The city's office market is booming, but there is a real lack of the right type of offices for lease or purchase. Our new development will help fill that gap, as we can accommodate all types of organisations looking for smaller suites up to large headquarters offices in quality, purpose-built modern buildings."

Agents' predictions for the Aberdeen office market in 2008 are also upbeat. Angus McCuish of Aberdeen-based FG Burnett, which is one of Gladman's retained agents for Abercrombie Court, says: "Against the background of a sustained oil prices, we expect demand for offices in the coming year to reflect the intensity we experienced in 2007, meaning that the upward trend in rents will be maintained."

Arnhall Business Park is already a successful, well known and accessible office and business location to the west of Aberdeen. Other occupiers on Arnhall Business Park include Tesco, Costco, Premier Travel Inn and a new medical centre. Westhill is a fast-expanding satellite town becoming increasingly popular with both residential and business occupiers.

The first new office units will be ready for occupation in Summer 2008. Agents FG Burnett and James Barr have been retained to market the scheme. Quoting sales prices are £220 psf and £17.50 psf for leases.

Scotland represents one of Gladman's major growth areas within the UK market, and the company is looking to acquire further sites for new office developments throughout the country, in towns with a population of more than 15,000.

In addition to Aberdeen, the developer already owns sites for office developments in, Berwick, Cumbernauld, Dunblane, Hillington and Livingston. The company is also keen to acquire land for industrial developments and for student and retirement accommodation. In November 2007 it launched Scotland's largest speculative industrial development, MAX at J4M8, which it sold to a US real estate fund last year.

The company invests more than £100 million per year building new offices and presently has more than 1 million sq ft under construction.