New lease of life for landmark tower
A prominent Aberdeen office building that was auctioned off for just £25,000 following the oil price slump is on the verge of being fully occupied after a turnaround in its fortunes.
Union Point, formerly known as Salvesen Tower, has undergone a major transformation and is now 95 per cent let under its current owner, Standard Real Estate (Union Point).
In 2018, the building was put on the auction block for just 0.4 per cent of the £5 million it had previously been worth. Three years ago, the office block was almost empty, despite offering some of the best views in Aberdeen over the city’s harbour.
The building, which is being marketedtoletbypropertyconsultanciesknightfrankandfg Burnett, has been refurbished, re-branded,andre-launchedto the market.
Standard Real Estate is said to have invested significantly in thebuilding,providingbespoke fit-outsandleasetermsranging from six months to five years.
Theadjoiningformerpub,the Quarterdeck Bar and Diner, is also being converted into a new business lounge and cafe, with work expected to be completed in the next few weeks.
Union Point is now home to a broad range of tenants, including HMRC, the DVLA and several shipping companies.
Hamish Munro, director at Standard Real Estate, said: “Having been actively involved in the Aberdeen office market for in excess of 15 years, we understanditisdifferenttoother Scottish office locations.
“Withtheacquisitionofunion Point,itwasourintentiontocreate affordable quality space on flexible lease terms for the local market,learningfromourexperience of similar buildings in other locations.
“Whilst the pandemic has been a setback it is now very
rewardingtoseethespacefilled with vibrant and enthusiastic local and national businesses and we have greatly enjoyed meeting with them all to create space to suit their needs wherever possible.”
Matt Park, partner at Knight Frank Aberdeen, said: “Standard Real Estate has done a fantastic job with Union Point over the past few years. The team have been very flexible and hands-on with its approach to the building, proactively working with tenants to make sure
they get what they need from their space.
“It may have taken three years to get to the point where the building is nearly full, but a lot of that can be put down to the pandemic and the uncertainty it caused for a lot of occupiers. But, as more occupiers in Aberdeen return to the office and look for flexible, quality space, we expect to see more demand come back to the market and already have interest in the remaining space at Union Point.”
Brian Crichton, managing director of People Factor Consultants, added: “Our company moved into Union Point last year. We were required to vacate our previous training centre in Union Street, as it was taken over by new landlords.
“We were attracted to Union Point as it was a competitive, realistic rent arrangement as well as a fantastic and easily accessible location in the heart of Aberdeen.”