ABSTRACT COMPLETES AND HANDS OVER PHASE 1 OF ABERDEEN INTERNATIONAL BUSINESS PARK

Mark Glatman’s Abstract Group, acting as Development Manager at Aberdeen International Business Park (AIBP) for its client Fornebuporten UK AS (a subsidiary of Norwegian investment company Aker ASA), has announced that it has completed and handed over Phase 1 of the Park, on time and on budget, on 20 February 2015.

As well as having been completed and handed over exactly on schedule, there were no accidents on site, no days lost in construction and just seven snagging items across the 335,000 sq.ft development. The development has achieved BREEAM 'Excellent' and EPC 'A' ratings and was completed in just 84 weeks including a complex category B fit out.

Phase 1 of AIBP was let to Aker Solutions in what is believed to be Scotland's biggest ever single office letting deal, and the resultant investment was sold to Legal & General. Phase 2 is now underway with Savills and CBRE newly appointed as agents, joining Knight Frank. The second phase will comprise a series of office buildings available on a 'design and build' basis, ranging from 50,000 sq. ft. up to a total of 530,000 sq. ft. as well as at least one hotel, for which Abstract is currently in discussions with an operator. Short term flexible office space ranging from 20-80,000 sq. ft. is also immediately available to let.

AIBP's site contractors were Bowmer & Kirkland and its architect was Keppie Design. Other consultants included Turner & Townsend (project managers), DSSR (M&E engineers), Mott MacDonald (engineering consultants) and Turkington Martin (landscape architects).

The 40 acre office park is located immediately opposite the entrance to Aberdeen Airport on Dyce Drive, approximately six miles to the North West of Aberdeen City Centre. The strategic importance of AIBP is further highlighted by the start of works to the long-awaited Aberdeen Western Peripheral Route (AWPR) and the associated six-lane Link Road (running immediately adjacent to the site) between the AWPR and the Airport. The AWPR is due for completion in late 2017 (earlier than expected) and will link the Airport with the City Centre and the established Western side of Aberdeen. The Link Road, together with the AWPR, will truly transform this location and create the leading non city centre business location.

The AWPR will also be supported by new infrastructure put in place by Abstract, including a new spine road joining Phases 1 and 2 of AIBP and the Link Road. Work on this new infrastructure will begin in Q2 of this year.

Commenting on the handover, Mark Glatman, Chief Executive of the Abstract Group, said: “On 20 February we handed over Phase 1 of AIBP, on time - in just 84 weeks - and on budget, having operated a completely safe site and with just seven snagging items, which, over a 335,000 sq. ft. complex build that incorporates a large number of office, leisure, and lifestyle elements, is an achievement that everyone involved in the development can be extremely proud of. The environmental criteria of BREEAM ‘Excellent’ 2011 and EPC ‘A’ are also amongst the highest of any building in Scotland. To build on this scale and in the often difficult weather conditions that we've experienced in the past months is challenging, but I am delighted to say that we completed and handed over on schedule and now look forward to starting work on the infrastructure that is planned for Phase 2.”

Adam Kerr, Head of Annuity Transactions at Legal & General Property, which purchased Phase 1 on behalf of its annuity fund in Aberdeen's largest single office deal said: "The buildings were effectively delivered comfortably ahead of the target practical completion date, as evidenced by the short list of snags. Abstract have a strong reputation for delivering top quality buildings highly efficiently and this development has been no exception. We are delighted with the investment and the Development Team deserve congratulations on this considerable achievement."

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For information on Aberdeen International Business Park, please visit www.aibp.co.uk/ -Ends-

Image shows: Aberdeen International Business Park
For media information, please contact Lisa Mennie at Skylark PR on 07825 225 414 / lisa@skylarkpublicrelations.com

LEONARDO BUILDERS SIGN PARTNER CHARTER

The developers of the Leonardo office site on Manor Royal have today made their commitment to the Crawley promise.

Abstract Group and Bowmer & Kirkland, now two new developer partners of the Crawley Charter, are constructing a brand new four- storey 109,685 sq ft office building in the heart of Manor Royal’s Crawley Business Quarter.

The site offers open plan flexible floor space, capable of providing office accommodation for up to 1,675 people.

Bowmer & Kirkland made its promise by signing the council’s Crawley Developer and Partner Charter.

Signed by Andy Lomas, Contracts Manager for Bowmer & Kirkland and Cllr Peter Smith, Cabinet member for Planning and Economic Development, the charter encourages developers, their contractors and council partners to make the most of all the opportunities for local people and businesses.

Speaking at the signing, Andy Lomas said: “It’s a pleasure to be involved and improve the overall image of the construction business, we are looking forward to working with Crawley Borough Council on this project.”

Christopher McPherson, from Abstract Group, added: “We are delighted to be a part of this project and take advantage of the prime location and diversity of business that Manor Royal offers.”

Once signed up, developers and partners will need to demonstrate their willingness to employ local people, create local supplier opportunities and contribute to raising skills for people in the area.

Examples include committing to providing apprenticeships, promoting opportunities for local businesses to provide services and materials, keeping local people well-informed, supporting local initiatives and working closely with local organisations like Central Sussex College and secondary schools to promote the value of skills and training.

Cllr Peter Smith said: “We are very pleased to be working with Bowmer & Kirkland and Abstract Group on the Leonardo Building.

“This is an exciting new initiative that will add to the attractiveness of Manor Royal as a place to do business and we are particularly enthusiastic about having both companies sign up to the charter.” 

ABSTRACT’S LEONARDO BUILDING BRINGS GATWICK OCCUPIERS A TOTAL SOLUTION AMID UNCERTAINTY

Mark Glatman Chief Executive of the Abstract Group today comments on the total solution the Leonardo Building brings amid the blight caused to 750,000 sq ft of offices around Gatwick Airport by the Gatwick Obviously campaign, for a second runway and the effect that this will have on the market. 

The comment comes after development company, Abstract (Crawley) Ltd, commenced on-site construction works last month for its next highly competitive speculative office development, 'The Leonardo Building’, Manor Royal, south of Gatwick Airport.

The Leonardo Building is a ‘Grade A’ office building comprising 110,000 sq ft together with over 300 car parking spaces. The site is the last undeveloped plot at Crawley Business Quarter just South of Gatwick Airport and opposite the offices of Virgin Atlantic and Boeing. Other nearby occupiers includes Doosan Power Systems, Tui Travel plc, Thales and Elekta.

Mark Glatman, Chief Executive of Abstract, comments on the plans for the second runway and how Sir Howard Davies, Chair of the Government’s Airports Commission will give his input on the runway plans in summer 2015 as part of an investigation into runway capacity in the south east of England.

Mark Glatman said: “The possibility is that this blight could turn into a ‘you lose your building’ scenario for those companies within the enlarged airport site, and we are currently offering the only new building in the locality – the Leonardo Building offers total certainty. Landlords who own affected sites might be dismissive of the repercussions of the second runway, saying ‘it’s not a problem’, but it is a problem.”

He continued: “The timing of the eventual decision and diggers actually making a start on site could be years out. At the moment, everything is blighted until next July, while we wait to see what happens. Whatever the decision, whether in Gatwick’s favour or not, there are probably going to be another 2 or 3 years of arguing and uncertainty. What that means is that the land around Gatwick Airport that will be affected by the runway is effectively going to be blighted for a considerable amount of time.”

Mark Glatman finished: “The Leonardo Building sits outside the proposed land take for the airport and offers occupiers absolute certainty in terms of their business needs and an opportunity to secure great quality new offices in a location which is unaffected. Our building is more competitively priced than existing older buildings and offers a total solution irrespective of the future plans for a second runway at Gatwick Airport. It is not just companies within the exclusion zone that will be affected, as companies looking at their property requirements who are outside the zone will also be subject to a market which will have little supply and increasing demand.”

In line with all Abstract developments, The Leonardo Building will target a BREEAM 'Excellent' standard and an EPC ‘B’ Rating together with building design occupancy from 1 person per 6 sq m which will maximise the operational efficiency of the accommodation. Depending on occupational density the cost per workstation per annum could be as low as £2,300.

The scheme will comprise a TP Bennett design of four floors offering flexible, virtually column free floor plates each of circa 28,000 sq ft. The property will have an end investment value of around £45m and be able to accommodate up to 1,700 staff when it completes during the last quarter of 2015.

The building is one of several speculative office developments that Abstract Securities has recently undertaken across the UK.

Having completed the 100,000 sq ft ‘Renaissance’ development in Croydon in November 2013, which was fully let within 10 months, Abstract is currently on site in Glasgow where it is in the final stages of speculatively building the 170,000 sq ft ‘St Vincent Plaza’ office development, which will complete in Spring 2015.

In conjunction with Aker ASA, Abstract is also currently developing 1 million sq ft of offices at Aberdeen International Business Park, where the first phase of 335,000 sq ft is due to complete in February 2015 and where the biggest office letting ever in Scotland has been announced.

Agents for The Leonardo Building are Knight Frank, Savills and Stiles Harold Williams. For more information visit www.theleonardobuilding.com

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For media information, please contact
Pauline Gregory on 07833 490964 / pauline@skylarkpublicrelations.com or
Lisa Mennie 07825 225 414 / lisa@skylarkpublicrelations.com

ABSTRACT ANNOUNCES APPOINTMENT OF TONY NICHOLAS AS BUSINESS DEVELOPMENT DIRECTOR

Mark Glatman's Abstract Securities Limited has announced the appointment of Tony Nicholas to the role of Business Development Director.

Joining the Abstract team on 10 November 2014, Tony Nicholas will focus on business development for the Abstract Group and large scale lettings and pre-lets for high-profile schemes such as Aberdeen International Business Park, which Abstract is developing on behalf of Norwegian investment company, Aker ASA. He will also drive new business and manage existing client relationships with a particular focus on the occupier side.

Tony has been actively involved in commercial property for 28 years, working closely on numerous projects with Abstract's Chief Executive Mark Glatman and Development Director Chris McPherson during this period. In his career to date, he has represented developers, funds, occupiers and landlords, specialising particularly in office agency and development.

Prior to joining Abstract, Tony was with Knight Frank where he worked for 26 years and was an Equity Partner of the Firm with extensive experience throughout the UK. Latterly, Tony headed up their Global Corporate Services team dealing with occupiers throughout Europe, The Middle East and Africa. He also opened Knight Frank's very successful Cardiff and Bristol offices and his focus throughout his career has been on agency and development.

Tony commented: “I have known and worked with Mark Glatman and his team throughout my career and as a result we have built a very strong working relationship. Mark approached me to join the Abstract team following my retirement as an Equity Partner at Knight Frank to pursue a fresh challenge and I am delighted to be joining a team that is creating several of the most high-profile schemes throughout the UK.”

Mark Glatman, Chief Executive of the Abstract Group, said: “As we continue to build large-scale commercial property developments around the UK, both speculatively and on behalf of clients, our requirement has grown for someone to support the existing team. Besides the letting and pre-letting of our speculative schemes, we are developing occupier specific projects offering the benefits of the experience we have gained with our extensive ‘uncompromising value’ approach. Having worked with Tony for many years we are very pleased that he has joined us in this key role and we look forward to working with him.”

Tony is a Chartered Surveyor. He is also a Freeman of the City of London and Liveryman of The Worshipful Company of Haberdashers and sits on their Property and Assets Committee. He is also a Governor of Monmouth Haberdashers School.

Photograph shows: Tony Nicholas, Business Development Director, Abstract Securities

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For media information, please contact Lisa Mennie at Skylark PR
T: 07825 225 414
E: lisa@skylarkpublicrelations.com

L&G IN RECORD ABERDEEN OFFICE DEAL

Legal & General Property (LGP), on behalf of its annuity fund, announces that it has purchased and forward funded the development of a 335,000 sq ft Headquarters office for Aker Solutions in Aberdeen for a total consideration of over £127 million, equating to a 5.75% net initial yield.  

Representing the largest single office deal ever to take place in Aberdeen, the property forms the first phase of Aberdeen International Business Park which is being developed by the Abstract Group on behalf of Norwegian Investment Company, Aker ASA.  

With works nearly complete, the first phase comprises three interlinked buildings totalling 336,369 sq ft (net) of Grade A office accommodation, alongside 1,197 car parking spaces.  Taking the property on a 20-year, lease term, with options to extend the leases over three further five year periods, Aker is due to take occupation of the asset in February 2015.  Paying an annual rent of just under £7.74 million, with a headline rent equating to £23.75 per sq ft and RPI linked rent reviews, the letting to Aker is believed to be the largest ever single office letting to take place in Scotland. 

With consent for total of around 1 million sq ft of accommodation, further phases are expected to include a series of office buildings and at least one hotel.  The property is located immediately opposite the entrance to Aberdeen Airport on Dyce Drive, approximately six miles to the north west of Aberdeen City Centre.  The strategic importance of the Dyce Airport location is further highlighted by the start of works to the long awaited Aberdeen Western Periphery Route (AWPR) and the associated Link Road between the AWPR and the Airport. 

Aker Solutions is one of the largest employers in Aberdeen, with operations spread across a number of sites in the City. When fully occupied, there will be around 2,400 employees in this new complex.  With a tight supply of skilled employees in the Aberdeen market, the first phase of the development is focused around providing a full-offer environment for employees, to include a good range of catering facilities, as well as a gym and sports hall, two squash courts, a medical centre, retail and a nursery / crèche.  Also recognising the growth of internet shopping, the building offers dried, chilled and freezer rooms for delivery of groceries to the workplace.  

Designed to achieve a BREEAM Excellent rating and targeting an EPC Rating of B, the property comprises a number of high sustainability credentials. 

Commenting on the sale, Mark Glatman, Chief Executive of the Abstract Group, said:
“This purchase by Legal & General is a huge endorsement of the Aberdeen market and this development in particular. When completed, this building will offer the best quality and most environmentally friendly accommodation in Aberdeen.”

Adam Kerr, Head of long income transactions at Legal & General Property, commented:
“Abstract has a reputation for delivering buildings of high specification, with excellent green credentials, to an exceptional standard of finish and this development project goes above and beyond this.  Investing for the long term, in order to provide a secure, long term income to match our annuity liabilities, the quality and enduring appeal of this building as a key business location is vital, as is the strength of the covenant backing it.”

Laura Mason, Director of Direct Investments at Legal & General Capital, said:
“This investment demonstrates our continued commitment to move into direct investments in the UK using our internal capital sources to provide long term financing to many different sectors.” 

For further information, please contact:

Olivia Goodall
PR Manager, Legal & General Property
020 3124 2777

Mark Glatman
Abstract Group of Companies
+44 (0) 207 747 8272 
www.aibp.co.uk 

Legal & General Property:

Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages approximately £465bn in assets on behalf of over 3,100 clients (30 June 2014) and provides products and solutions spanning all asset classes. LGP is the fourth largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles including three segregated mandates with an aggregate asset value of £14.2bn as at 30 June 2014. These funds include:

• Balanced Funds

  • Life Fund; Linked Pensions; Linked Life; Managed Fund; Legal & General UK Property Fund; UK Property Income Fund I; UK Property Income Fund II; LPI Income Property Fund and the Hybrid Property Fund

• Specialist Pooled Funds

  • The Leisure Fund Limited Partnership; Industrial Property Investment Fund; Arlington Business Parks Partnership; and the English Cities Fund

• Single Asset Vehicles

  • Bracknell Regeneration Partnership; Central Saint Giles Partnership.

LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance. Owing to its size, diversity and penetration, it benefits from best-in-class banking and property contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities. 

Taking a client-centric approach, the business places the highest priority upon integrity and transparency, leveraging the significant resources provided by the wider LGIM platform.  Protecting the medium to long term value of its portfolio, as a leader in sustainability, green principles are embedded into every property and investment decision. 

Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability. In particular, the Company has a major development platform, responsible for delivering community-focused projects ranging from West End landmark buildings to significant town-centre retail and leisure regeneration schemes. 

Forming part of the Group’s larger UK housing and infrastructure investment strategy, LGP also continues to participate in a growing range of supply side housing activities, including financing affordable homes, the house building sector, urban regeneration, student accommodation and care homes.