Aberdeen's Annan House sold to Israeli investors in £32million deal

Ruaraidh Britton
·2-min read
Annan House
Annan House -Credit:Google


An Israeli investment firm has bought Annan House in Aberdeen in a £32million deal, significantly below the initial asking price.

The North Dee Business Quarter office block was placed on the market last year with a £42million price tag, and at the time was the largest office space in the city to be put on sale, reports React News.

The 120,000sq ft commercial office building was placed on the market by German investment company and owners of Annan House Patrazia last April.

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Developed by Drum Property Group in 2015 and bought by Rockspring in the same year, the building was leased to offshore firm EnQuest, while OEUK and Worley also have a significant presence in the building.

When placed on the market, the lease for the eight-storey building, which includes a parent company guarantee, held over 10 years to expiry.

The guide price of £42million reflected a net initial yield of 8 per cent, although the running yield rises to 9.16 per cent in June 2025 and 10.49 per cent in June 2030 due to five-yearly rent reviews in the lease.

Annan House formed part of a £100million project to redevelop the Aberdeen Seafood park into an area now known as the North Dee Business Quarter.

The property was acquired by Rockspring Property Investment Managers in the same year for a price in the region of £45.1million. Patrizia acquired the London-based Rockspring in 2017.

Speaking at the time of Annan House being placed up for sale, Mischa Davis, Patrazia Hanover Property Unit Trust fund director, said: "Our sale of Annan House is part of Hanover’s ongoing strategy to evolve its sector allocation and ensure investors have a good spread of real estate risk across relevant asset classes, including alternatives such as student housing, healthcare/senior living, data centres and life sciences.

"As a leading balanced fund in its peer group, our aim for Hanover is to provide investors with a market-leading diversified portfolio that evolves as the market changes."

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