In a noteworthy transaction, an Israeli investment company has completed the purchase of Annan House in Aberdeen, sealing the deal at £32 million, a figure considerably less than the original £42 million asking price.

Situated in the North Dee Business Quarter, the 120,000 square foot office block had been on the market since last year, marketed by German investment entity Patrazia. The initial valuation of the building made it the most expansive office space listed in Aberdeen at that time, according to React News.

Annan House is a key part of the extensive £100 million redevelopment project that transformed the former Aberdeen Seafood park into the bustling North Dee Business Quarter. The office building itself was developed by Drum Property Group in 2015 and acquired by Rockspring that same year. It is primarily leased to offshore firm EnQuest, and also houses operations for OEUK and Worley.

At the time of the sale announcement, the lease details included a parent company guarantee with more than a decade remaining. The original price reflected a net initial yield of 8 per cent, with expectations for this yield to increase in the coming years due to scheduled rent reviews.

The sale is part of a strategic refocusing for Hanover, which is managed by Patrazia. Mischa Davis, fund director at Patrazia Hanover Property Unit Trust, explained that the disposal of Annan House aligns with Hanover’s strategy to diversify its real estate portfolio. This includes increasing investments in sectors like student housing, healthcare, data centres, and life sciences, aiming to offer investors a robust and evolving portfolio.