An unholy trinity impacting older Aberdeen offices has been blamed for the cut-price of the latest west end landmark to hit the market.
Carden Church, a four-floor conversion in Aberdeen’s Carden Place, is being sold for £750,000 plus VAT.
And the oversupply of high quality office space, decline in oil and gas and a 40% hike in business rates on listed properties last year have been blamed for the price tag.
Carden Church is nearly fully occupied and is being sold as an investment opportunity – making more than £200,000 a year in rents.
‘A good time to sell’: Carden Church is almost fully let
For John Buchan, director with building owners MGA Architecture, that makes it the right time to sell.
The firm bought the B-listed, former Carden-Melville Church in 1990.
Its lower ground floor, which is self-contained with an entrance off Albert Street, was developed as their HQ.
The floors above, linked by a spiralling staircase, became the long-term home of Anderson Anderson and Brown in the years of award-winning redevelopment that followed.
Back at almost full capacity now, with years left on tenants leases, it’s the right time.
Company founder Michael Gilmour died in 2017 – and now his wife Hilary and Mr Buchan think it’s time to step back from managing commercial property.
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Mr Buchan told The P&J: “After 34 years, we are selling. We are getting old.
“I am coming up to 65 and she’s over 70.
“The building almost fully let so it is a good time to sell when there is rental income coming in.
“And it is being sold almost full, for that money it could basically be held on to as an investment.”
‘Glut’ of office development and listed building rates hit west end valuations
But he would have got a far greater price only a few years ago.
A “glut” of high quality office development in Aberdeen city centre has drawn demand away from the west end.
“The decline in the local economy and the supply of new high-grade offices on Union Street has had an effect on rents – and that has an effect on the valuation,” Mr Buchan added.
“The valuation is a lot less than it would have been five years ago. But west end offices have reduced in value.”
Sale comes amid slew of west end office conversions
Over the past few years, more and more developers are have been turning empty west end office buildings back into housing.
“There is less demand, which has been addressed by the council with their listed building business rates policy, encouraging change of use to residential.
“I am sure the west end buildings will make nice homes, as they did in the 19th century when they were first built.
“But how can someone afford to buy a large office and convert it into a house? Only now they have reduced in value.”
Aberdeen’s Carden Church “cannot easily” be converted for housing, Mr Buchan added.
“It might best be converted back into the church – and you might be surprised at the market for that…”
CBRE’s Dominic Millar told The P&J: “The sale of Carden Church presents an investor with a unique opportunity to acquire a rarely available, prominent, income generating asset in the west end of Aberdeen.
