Aberdeen is located approximately 130 miles (209 km) north of Edinburgh, 71 miles (114km) north of Dundee and 105 miles (169 km) east of Inverness. The city has excellent road connections south via the A90 (T) and west to Inverness by the A98 (T).
Aberdeen benefits from excellent rail connections via the East Coast main line with travel times to Edinburgh of around two and a half hours. Aberdeen international airport is situated approximately 6 miles west of the city centre at Dyce.
The property comprises a Grade B listed building of grey granite ashlar arranged over basement, ground and four upper floors under a flat roof. Internally, the property provides banking hall facilities at ground floor level as well as storage in the basement and offices on the upper floors. The entirety of the property has been fitted out in the RBS corporate style.
Absolute Ownership (Scottish equivalent of English freehold).
The property is wholly let to The Royal Bank of Scotland Plc until 17 December 2037, therefore providing in excess of 19 years unexpired.
Current passing rent of £173,571.52 pa, which is reviewed on an annual basis on 25 December each year, linked to the UK's Retail Price Index (RPI) in the preceding October, subject to a cap of 3%.
The third floor of the office accommodation has been sublet.
Further information is available on request.
The Royal Bank of Scotland Plc is a principal subsidiary of The Royal Bank of Scotland Group Plc. In February 2018, The Group reported significant results with an annual profit of £752m for 2017. Its financial strength
is a reflection of the UK Government's majority ownership and control of the business, which stands at 62% (June 2018).
As part of restructuring by the bank to separate domestic retail banking from investment banking sectors, in line with the UK ringfencing requirements required to be in place by January 2019, The Royal Bank of Scotland Plc will sit inside of the ring-fencing requirements. It will hence benefit from greater protection afforded under these measures, with separation of the retail banking sector from investment and international banking activities.
The Royal Bank of Scotland Plc is rated as investment grade as follows:
Standard & Poors: Long Term Debt - A-, Outlook - Positive
Fitch: - Long Term Debt - A-, Outlook - Positive
For further information on the above, including latest reports by Standard & Poors and Fitch to support the investment grade covenant rating, please review https://investors.rbs.com/fixed-income-investors/credit-ratings.aspx. See the online data room for further information.
The company has a Dun & Bradstreet rating of 5A 1 (June 2018), representing a minimum risk of business failure.
We understand that the property has not been elected for VAT.
Offers sought in excess of £2,850,000 (Two Million, Eight Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level would reflect an attractive net initial yield of 5.75%, assuming purchaser's costs of 5.96%.
Based on Oxford Economics' 5 year RPI forecast, at the quoting price this would provide the following running yield profile: