Investment Summary
- c.£39.8 forward-funded development of a prime 150,000 sq ft leisure and office development in the heart of Aberdeen.
- The property consists of existing let space and units to be developed (both pre-let and vacant with rental guarantees).
- Strong tenant covenants in place for existing units, let on FRI terms.
- Pre-let development includes a casino and a 107-room hotel.
- An estimated IRR of over 11%, based on assumptions provided by DTZ.
The Property
City Wharf will encompass a mix of leisure and office assets in the centre of Aberdeen, near the east end of Union Street. The area is already an established prime leisure destination and has a number of restaurants, bars and a cinema complex.
The existing let units consist primarily of office accommodation over four floors at Exchequer House, let on FRI terms to tenants Aberdeen City Council and FirstGroup. A car park, currently let to NCP, is being redeveloped to provide 400 spaces.
The pre-let development includes a Grosvenor casino and a 107-room hotel (pre-let to Accor Group).
Practial completion is expected in Autumn 2010.
Investment Structure
The investment will be by way of a Scottish limited partnership.
The Partnership (through a property investment company set up for the purpose) will acquire the SPV that owns the City Wharf site and, as such, SDLT is not payable on acquisition. Stamp duty at 0.5% will be payable on the value of the shares of the SPV.
The Information Memorandum for SI Limited Partnership No 7 is available now from our Introducers Area.