NOVEMBER 2007: RETAIL IN ABERDEEN - RICHARD NOBLE

Aberdonians (and I am one) are pretty hard to please when it comes to the right balance in city centre shopping. I am often asked when we will see certain retailers in Aberdeen - for example Karen Millen, Zara and Urban Outfitters - yet often questioned on how we are losing our uniqueness, with the city seen as "a clone of any other high street in the UK".

It's all about getting the balance right.

We need to celebrate the recent arrival on Union Street of Cruise/Boss and new entrants to the Bon Accord-St Nicholas Centre, Republic and Jane Norman.

It's important we attract as many of the "must haves" as possible, given leakage by shoppers to other cities, particularly Glasgow, London and Manchester. We have excellent local retailers and they offer a great level of service and have strong support. I firmly believe that local independent traders can continue to be very successful.

I recently visted Silverburn, a retail giant at more than 1 million sq.ft, 15 minutes south of Glasgow city centre on its opening day - a soft opening, given only around 50% of retailers were open. The development is hugely impressive physically, in terms of structure and some great new shop fits. But the tenant line-up, including anchors Marks & Spencer, Tesco, Debenhams and the biggest Next store in Scotland, could be accused of replicating every other "high street" in the UK.

We often read how Union Street is looking "down at hill" and "full of empty shops". But it's amazing what a couple of deals can do - Cruise/Boss and G-Star moving into a "good secondary pitch" has lead to talk of a resurgence in the main commercial artery. I fully expect other retailers of a similar nature to secure space within adjacent blocks.

The recent closure of E & M's was seen as a real negative, but there was healthy competition from developers for the opportunity to acquire the property. The news of this building being redeveloped for retail and hotel/residential use is most welcome.

Union Street has changed over the last 15-20 years and we should not be too negative about the changes, particularly at the west end. Less retail and more coffee shops, bars and property shops simply reflect demand.

Vacancies on Union Street represent only a few percent of the total properties and, in a street just short of a mile, that is pretty impressive. Most units currently available have deals bubbling under. Those that remain empty for any length of time often reflect physical problems with the tenure or property.

Rumours of the demise of Union Street have been much exaggerated. During our discussions with agents from other cities, the comment now is that "Union Street seems to be on the up".

Pedestrianisation of Union Street between Bridge Street and Market Street has long been council policy. I would prefer more pedestrianisation of Schoolhill and Upperkirkgate around the Bon Accord-St Nicholas Centre, with Union Street remaining as a busy artery connecting with the West End. Let's have further environmental improvements on Union Street and perhaps further restrictions on car movements, but retain buses delivering people to where they want to be.

Multiple retailers arriving in Aberdeen almost without exception trade particularly well. New Look are delighted with the Bon Accord-St Nicholas Centre; Cafe Nero is very keen to secure a second unit in the city; and Jane Norman has opened very successfully in the Bon Accord-St Nicholas Centre, as has Republic in Bon Accord. On a weekly basis agents and/or their retailer clients are visiting to decide where to be - on Union Street, in the Bon Accord-St Nicholas Centre, or to wait for Union Square? The good news is that they will come: it is a matter of where they believe will trade to full capacity. The problem historically has been the availability of units of the right size. New developments will provide better sized units.

Property agents are focusing on attracting high-end fashion and there is no doubt that the recent Union Street arrivals will assist.

The continued prosperity of Aberdeen city centre is crucial to the whole of the north-east and I was pleased to see Aberdeen City & Shire Economic Growth Forum list city centre redevelopment as a key strategy. The city centre needs to be safe, exciting and interesting. Major UK developers understand this and are developing high quality schemes. I have no doubt that this will be the case at the expanding Bon Accord-St Nicholas Centre in terms of the adopted masterplan and also at Union Square. The key for major developers is how to encourage visitors to their centres to dwell longer and how to link the day time and night time economy. It's a challenge faced by the city centres elsewhere in the UK. Many multiples are biting their nails in relation to Christmas trading, but the majority needn't worry about their Aberdeen branch.

OCTOBER 2007: ABERDEEN'S HIGH COMMERCIAL PROPERTY VALUES

MEAN SPIN-OFF BENEFITS FOR OWNER-OCCUPIERS

Significant increases in the value of commercial property and land in the Aberdeen area in recent years have meant a major boost to the asset value of owner-occupier companies and strengthened their position when borrowing for new investment.

Factors influencing the Aberdeen situation include high oil and gas prices and the consequential huge stimulus to the local economy; the relatively low Bank borrowing rates; very low unemployment; salaries above national average; and the resulting overall confidence.

Angus MacCuish, Managing Director, F.G. Burnett, Chartered Surveyors and Property Consultants, Aberdeen and Glasgow, explained: “Demand for commercial property, including land for development, has increased markedly and, with the pressure on supply, prices have risen. By way of example, until last year the benchmark figure was reckoned to be £200,000 or so per acre, but it is now generally accepted that the price for serviced land for industrial/business space is of the order of £500,000 per acre, probably outstripping anywhere else in Scotland.”

Whilst the price of residential property in Aberdeen has attracted a lot of attention, there have been very few column inches devoted to the subject of the higher commercial property values and the implications for property owners.

MacCuish added: “In tandem with capital values, rental values have also increased considerably, with record highs being paid for prime retail, office and industrial accommodation in the city. Rents for new industrial/warehouse facilities are now in the region of £8 per sq.ft. for the “shed” element, with up to £15 per sq.ft. being achieved on the offices.

“Surfaced secure open storage is also at a premium and attracting up to £1 per sq.ft. after allowing for essential access and circulation. This has resulted in significant demand for investment in Aberdeen where, with tenants’ requirements strong and no sign of abating, a good level of future rental growth is also anticipated. Yields for industrial property were at an all time low earlier this year, thus demonstrating the weight of money seeking quality investments.

“Companies owning and occupying premises have also benefited from higher vacant possession values. Just as there has been a high level of tenant demand, so too in the owner-occupied sector and the not insubstantial difference which used to apply between investment value and value from an owner occupier’s perspective has all but disappeared.

“This is explained to some extent by the actions of some investors who, when unable to purchase let property, are opting to acquire vacant premises in the expectation that it will let readily once exposed to the market. As a consequence, the historic differential has narrowed considerably.”

The beneficial spin-offs for owner occupiers make it very important that their property assets have accurate and up-to-date valuations, based on specialist advice. “Firstly, high property values translated to the balance sheet boost the overall asset value of companies and improve the image as a healthy business,” MacCuish said.

“Secondly, the higher asset value base from which lenders can assess the viability of a loan increases the opportunity to borrow money from lending institutions. Unlike the residential sector, where mortgages of up to 90% of value and sometimes above are often arranged, secured lending against commercial property seldom exceeds 70% of value, therefore the higher level of value is a key to negotiating as high a loan as possible for future company development.”

SEPTEMBER 2007: COME ON THE JUNIORS!

F.G. Burnett are delighted to sponsor local juvenile football team, Broomhill Juniors.

Broomhill Juniors play in the Aberdeen District Juvenile Football Association Under 12 League. The majority of the players and coaching staff are resident in the Broomhill area within the West End of Aberdeen, where F.G. Burnett are located.

AUGUST 2007: NEW LOOK’S BON ACCORD FLAGSHIP-UPSIZE TOPS UK LIST

Market-leading fashion retailer New Look recently opened its new flagship store at the Bon Accord St Nicholas shopping centre in Aberdeen city centre, achieving extraordinary results. During its first full two weeks of trading the store outperformed every other store in the UK – bar none.

The remarkable performance comes after the on-trend retailer upsized to a 55,000 sq. ft. unit having originally traded from a relatively small 3,950 sqft store at Bon Accord - responding directly to consumer demand for the latest fashions.

Amanda Herron, Acquisitions Manager at New Look commented ‘Naturally we are delighted with Bon Accord after an absolutely fabulous opening, trading beyond our best expectations and performance targets. The Bon Accord store has been our top store in the UK for two weeks running’.

From its first UK store in Taunton (1969), there are now some 580 New Look stores in the UK, with expansion plans for more store openings of between 25-30,000 sq ft in Leicester, White City, Liverpool 1 and Belfast City Centre. At 55,000 sqft GIA, the Aberdeen store ranks as one of the retailer’s largest. Other flagship stores include Oxford Street, Glasgow, Manchester, Gateshead, Dublin and Cardiff.

On behalf of the SRPLP, Katherine Armstead – Portfolio Manager at Land Securities - commented “Bon Accord is leading the way with quality fashion and retail occupiers in Aberdeen city centre, with opportunities for new retailers to join right here, right now. Our wider initiatives for the centre are set to strengthen the shopping offer in the heart of the granite city”.

Richard Noble from joint Agents FG Burnett added, “New Look is one of a select group of high street retailers used as a barometer for retail property, and their phenomenal start at Bon Accord is a reflection of the demand for quality fashion positioned in the strongest part of the city.

FG Burnett and Eric Young & Co. are joint retail letting agents for the SRPLP.

MAY 2007: ANDREW SMITH PASSES APC ASSESSMENT

F.G. Burnett are delighted to annouce that Andrew Smith has successfully passed his APC Assessment to become a Chartered Surveyor. Andrew works within the Agency Department of F.G. Burnett and deals with retail property.

MAY 2007: NEW LOOK ABERDEEN FLAGSHIP STORE NOW OPEN

New Look have now opened their colourful new flagship store in Aberdeen. In a prominent position on the upper level of the Bon Accord Shopping Centre, the store promises to be a delight for shoppers.

MAY 2007: NEW INSTRUCTION: BEACH BOULEVARD, ABERDEEN

On behalf of Local Charity Inspire, FGB have been instructed to market a vacant office suite in Inspires exciting new Boulevard Project on Beach Boulevard. Further information, please contact, Jonathan Nesbitt

MAY 2007: F.G. BURNETT APPOINTS ASSOCIATE

F.G. Burnett, Chartered Surveyors and Property Consultants, Aberdeen and Glasgow, has announced the appointment of Building Surveyor, Jim Johnstone, as an Associate, effective May 1, 2007.

Head of Building Surveying, Doug Jolly, said: “The promotion is in line with our strategy for continuing company growth, and recruitment will expand the Division’s activities in a buoyant market.”

On graduation from The Robert Gordon University, Aberdeen, Jim joined F.G. Burnett’s Building Surveying Division in 2000. A Chartered Surveyor since 2003, he was promoted Senior Building Surveyor two years later.

Based in the Aberdeen office, Jim is the current chair of the Royal Institution of Chartered Surveyors’ local matrics group.

MAY 2007: SECOND PHASE APPROVED AT SOUTHSIDE TRADE PARK

Following the success of Phase 1 of South Side Trade Park, with a 10,000 sq. ft. pre-let to Howden Joinery, Spectrum Estates have obtained planning consent for the next phase which is scheduled to be underway soon.

It will provide a speculative building of 10,000 sq. ft., suitable for warehousing and trade counter uses at the Thornliebank, Glasgow, location.

Gavin Smith, Glasgow Director of agents F. G. Burnett, commented: "The recent success of the Howden Joinery letting and the encouraging response to marketing initiatives have prompted our clients to commit to a further phase of development. The close proximity of Junction 3 of the M77 motorway provides first class communications for distribution and service companies to reach most parts of the south side of Glasgow with ease.

"In addition to the speculative building, we are in advanced negotiations on a bespoke building for an owner occupier."

The overall South Side Trade Park development will accommodate warehouse units from 5,000 sq. ft. up to 20,000 sq. ft., with a total development of 60,000 sq ft.

As sole agent, Chartered Surveyors and Property Consultants F.G. Burnett, has commenced a new phase of marketing speculative or bespoke accommodation for lease or purchase.

For further information contact Gavin Smith.

APRIL 2007: OFFICE PURCHASED AT NEW MART ROAD, EDINBURGH

Suites available for lease

Acting on behalf of expanding contracting and shop-fitting business, Thomas Johnstone, the Glasgow office of Chartered Surveyors and Property Consultants, F.G. Burnett, has recently purchased a new office pavilion at the Quadrant in New Mart Road, in Edinburgh’s Slateford area.

Two adjoining suites of approximately 2,500 sq. ft. each are available for lease, with Thomas Johnstone occupying the upper floor.

Thomas Johnstone’s Managing Director, Graeme Alexander, commented: “This is a first class purchase which offers an excellent location for our expanding Edinburgh operation close to local amenities, Slateford rail halt and main arterial routes into Edinburgh, with good links to the motorway system. We are delighted with our new purchase.”

F.G. Burnett’s Glasgow Director, Gavin Smith, stated: “Thomas Johnstone were searching for a west Edinburgh office to purchase and we noticed that Park Lane Developments had just released the last pavilion at The Quadrant, we quickly moved in to snap up the high quality office building which will also be part let to create investment income.”

Marketing has commenced, and joint agents Gavin Smith of F G Burnett in Glasgow and Douglas Duncan of D2 in Edinburgh have been appointed to find occupants for the two adjoining ground floor suites, each of 2,500 sq. ft., with high quality finishes, parking and excellent amenities. Asking rents are based on £40,000 per suite and flexible lease terms are available.

For further information contact Gavin Smith, 0141 249 6621

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APRIL 2007: BON ACCORD HOARDINGS KEEP CUSTOMERS UP-TO-DATE

New hoardings on the upper level of Bon Accord Centre advertise the arrival of New Look in their flagship store scheduled for opening in May 2007. Colourful hoardings opposite disguise the activity where work has now commenced on the development of the new Next flagship store extending to 54,000 sq.ft.

APRIL 2007: RECONFIGURED CENTRAL ATRIUM A HIVE OF ACTIVITY

Ben & Jerry's and Costa trade away happily in the Bon Accord Centre Central Atrium recently reconfigured to provide accommodation for the two retailers and also escalators serving the upper level.

APRIL 2007: RETAIL REQUIREMENT

ELGIN: HIGH STREET

MULTIPLE RETAILER REQUIREMENT

CIRCA 2000 SQ.FT SALES

500 – 1000 SQ.FT ANCILLARY SPACE

LEASEHOLD/HERITABLE INTEREST

Details in confidence to:-

Richard J Noble
F.G. Burnett Ltd
33 Albyn Place
Aberdeen
AB10 1YL
rjn@fgburnett.co.uk

MARCH 2007: F.G. BURNETT VISIT TO LIVINGSTON

A delegation from F.G. Burnett Ltd visited the Livingston Shopping Centre and Designer Outlet Centre at Livingston on 7th March. Hosted by David Smith, Scottish Regional Director, Land Securities, the team were treated to a tour of the schemes together with a briefing of “The Elements” the new retail and leisure scheme currently on site. A visit to the Cadbury outlet unit looks imminent from the photograph!

The team from left to right is Jonathan Nesbitt (Office Agency), David MacLeod (Investment), Richard Noble (Retail Agency), Christopher Yannaghas (Property Management), Carla Belli (Building Surveying) and Kevin Jackson (Retail Agency).

Many thanks to David Smith for conducting the tour.

FEBRUARY 2007: ELGIN LETTING TO BARRACUDA GROUP

Acting on behalf of private clients, Chartered Surveyors and Property Consultants, F.G. Burnett, have let 178/182 High Street, Elgin to the rapidly expanding public house/restaurant chain, Barracuda Group, to operate a stylish Smith & Jones branded pub on a new 25 year full repairing and insuring lease at an initial rental of £65,000 per annum.

Arranged over ground, first and second floors, the building extends to approximately 7,290 sq.ft. The property occupies a first class location close to the Marks & Spencer Simply Food Store, Bank of Scotland, Ladbrokes and Edinburgh Woollen Mill.

Barracuda Group is one of the UK's top ten managed pub companies and has particular expertise in transforming properties into Smith & Jones pubs in a sympathetic manner befitting the local area.

Each individual Smith & Jones pub is unique and appeals to a wide range of customers who are seeking a higher quality of pub - from shoppers grabbing a quick coffee and a Danish, to office workers on a lunch break, and from couples sharing a bottle of wine, to Sunday roasts with a group of friends - this level of diversity is one of the main reasons why Barracuda Group believes Smith & Jones would suit the Elgin area.

It will not be a "superpub" offering cheap drinks at discounted prices, but will operate as a high quality pub serving award-winning pub food, premium brands, coffees and soft drinks in a contemporary yet comfortable environment.

The pub will create around 25 full and part-time staff in the Elgin area.

FEBRUARY 2007: MONTROSE: 69/75 HIGH STREET - NEW LOOK FOR SCOTMID!

As part of their major retail redevelopment in Montrose, Scotmid have concluded a letting to New Look.

The retailer has taken approximately 8,700 sq.ft, all on ground floor, on the basis of a new 15-year full repairing and insuring lease at an initial rental of £90,000 per annum. The unit occupies a prime position on High Street, Montrose and will trade adjacent to a new Scotmid Convenience Store.

This latest deal is part of the Scotmid redevelopment in Montrose town centre which has seen Argos come to the town to trade from approximately 12,500 sq.ft.

There are four remaining opportunities within the development which is served by approximately 160 car spaces. Two units adjacent to Argos of 4,629 sq.ft and 2,131 sq.ft together with a unit to the rear of New Look fronting the car park extending to 3,500 sq.ft. A substantial open plan upper floor suitable for a variety of uses and extending to approximately 15,000 sq.ft is also on offer.

F.G. Burnett acted for Scotmid in relation to the New Look letting, whilst CBRE acted for the tenant. F.G. Burnett and Culverwell are retained to let the remaining space in the development.

FEBRUARY 2007: PSN LTD, WELLHEADS PLACE, DYCE, ABERDEEN

F.G. Burnett Ltd's Building Surveying team acted as both Project Manager and Planning Supervisor for the refurbishment of the original building on the PSN Ltd site constructed in 1978. The works comprised the internal refurbishment of the office areas together with the upgrading of the various toilets. The office areas were stripped out and the works included the complete rewiring of both the power and lighting circuits together with providing air handling units, renewal of all suspended ceilings, complete redecoration and renewal of floor coverings. The building remained occupied during the works which which were undertaken on a phased basis allowing each phase to be reoccupied on completion.

The role of Project Manager involved overseeing the various members of the professional team which included Quantity Surveyors, Structural Engineers, Electrial and Mechanical Engineers together with supervising the works on site and liaising with the client.

The role of Planning Supervisor was required in connection with the Construction & Management Regulations 1994 dealing with general health and safety issues both in respect of designing out potential hazards and also on implementation of safe working systems on site.

JANUARY 2007: F.G.BURNETT SELLS SHARE IN ALLIED SURVEYORS

The Residential Valuation Division of Chartered Surveyors and Property Consultants, F.G. Burnett, has been acquired in an employee buy-out and is now being operated as Aberdeen Surveyors Limited, trading as Allied Surveyors.

Previously Associates of F.G. Burnett, Gordon Macdonald, Donald Murray and Gordon Gibb are the shareholders and directors. Peter Longmoor and the other employees of the Division have transferred to the new company which is sub-letting offices from F.G. Burnett at 33 Albyn Place, Aberdeen.

The new company will continue to operate as a member of the Allied Surveyors network, providing residential valuations and condition reports throughout Grampian.

The agreement, effective 1 January 2007, follows a decision by F.G. Burnett to focus on the range of commercial services provided by its Aberdeen and Glasgow offices, including commercial agency, commercial valuations, investment and development consultancy, building surveying, property management, rent reviews and rating consultancy.

It will also continue to advise on the sale and acquisition of residential development opportunities on brownfield and greenfield sites.

F.G. Burnett Managing Director, Angus MacCuish, commented: “We have decided to focus on the further growth of our commercial property activities throughout Scotland, following the evolution of the Residential Valuation Division as a separate business unit in recent years.”

Gordon Macdonald, Managing Director of ASL, said: “The buy-out is a logical move for both parties, and we look forward to using our considerable experience to expand the residential surveying business in a busy market.”

Allied