Aberdeen’s Talisman House office block has been put up for sale for £19.5million, raising the prospect of the biggest commercial property deal in the city since the start of the Covid-19 crisis.
Agents Knight Frank hailed the move as a further sign of the local market’s recovery from the impact of the pandemic and the volatility in oil prices it sparked.
The firm said a deal for the Holburn Street headquarters of Repsol Sinopec Resources UK (RSUK) could trump the sale earlier this year of Neptune Energy’s building, which was marketed for £15.25m.
Opened in 2000, the six-storey building, which has more than 96,000 sq ft of office space, let in its entirety to RSUK, is being sold by London-based company Apam.
Spanish oil firm Repsol and China’s Sinopec acquired stakes in Talisman Energy, the building’s original occupier, in 2012 and 2015 respectively and formed the joint venture based there.
The oil and gas exploration and production company is also involved in a partnership to develop a large-scale green hydrogen facility in Orkney, which was announced earlier this month.
RSUK has undertaken rolling refurbishment programmes at Talisman House, including recently setting up new integrated operating centres.
Knight Frank associate, Douglas Binnie, said: “Talisman House is a well-known building in Aberdeen, let to a strong occupier in Repsol Sinopec, which has solid ties to the city – not least in its modernisation of its office, but equally through its major hydrogen project on Orkney.
“While the asset offers a high yield, it is also a high-quality property in a good location in the city.”
Higher oil price has lifted Aberdeen market
The latest analysis of Aberdeen’s commercial property market by Knight Frank found that take-up doubled between the second and third quarters of this year.
Signs of the market’s recovery included the Shell’s plan to move to the Silver Fin building, in the city centre, and BP committing to space at Aberdeen International Business Park, in Dyce, the firm said.
Mr Binnie added: “A higher, and more sustained, oil price has helped lift Aberdeen’s commercial property market, with increased deal activity and renewed activity from occupiers.
“All things being equal, we expect to see increased investor appetite for the city as we move into 2022, with the occupier market continuing to recover and, with that, investment activity picking up.”
Knight Frank also advised in the sale of the Neptune Energy building, on North Esplanade West, which was announced in May.
Talisman House was built on the site of the former Aberdeen College of Commerce, which was demolished in 1999.
