Barclays has announced the provision of a £52 million (approx. 66.5 million) debt package for Drum Property Group Ltd to build the first phase of Aberdeen's only grade-A business park for the oil and energy sector.
Construction work on the Prime Four Business Park project has begun.
Barclays is the sole financial backer for the facility, which will fund the building of the first phase of the innovative development. Phase 1 will comprise 350,000 ft² (approx. 32,515 m²) of high quality office accommodation.
Construction work on the Prime Four Business Park project has begun and an estimated 1,200 jobs will be created and sustained in the local area from Phase 1 alone. Economic consultants have calculated that the first phase of Prime Four Business Park will be worth £300 million (approx. 383 million) a year to the local economy.
Four buildings are planned in Phase 1, all of which are already fully pre-let to world leading investment grade companies in the oil and energy sector; Apache North Sea Ltd, Nexen Petroleum UK Ltd and Transocean UK Drilling. Phase 1 will be completed in autumn 2013 followed by further phases which, in addition to further grade-A office accommodation, will include a four star hotel, a leisure club, retail and service outlets.
The business park will include cutting edge architectural, landscaping and design principles using the sustainable materials to create a development of regional economic significance.
Drum will work with leading UK contractor Sir Robert McAlpine (SRM), a company with a proven track record of constructing major projects including the Olympic Stadium, the Emirates Stadium, and recent M74 extension in Scotland.
Graeme Bone, Director of Drum Property Group Ltd., commented: "We are delighted to be working with Barclays Bank plc on this exciting project. Prime Four Business Park will provide world class accommodation for world class organizations and play a part in maintaining Aberdeen's status as the acknowledged energy capital of Europe."
Jamie Grant Head of Property and Project Finance led the deal from Barclays working alongside Philip Johnston (Director of Real Estate), Jayne Dickens (Director of Structured Property Finance), and Stuart McAleese (Manager of Real Estate).
Jamie Grant, Head of Property and Project Finance for Barclays in Scotland, commented: "This is a substantial property transaction not only in the Aberdeen property market, but also the wider Scottish economy, which will result in world class oil and energy business hub Aberdeen can be proud of. Barclays' investment illustrates our appetite to work closely in conjunction with management teams to support their vision and viable commercial plans.
"Drum Property Group have identified demand from occupiers for a master planned, landscaped business park in Aberdeen that will serve as an international growth centre for the region and we are committed to supporting the development."
Aberdeen is widely recognized as the energy capital of Europe and its growing oil and gas sector plays a vital rol