DEVELOPMENT SOLUTIONS
Abstract works closely with occupiers, owners and financiers to provide a range of property solutions bespoke to their specific requirements.
Abstract has worked with a number of occupiers looking to benefit from a bespoke solution to their business needs rather than simply leasing space in the market. Abstract will work with an occupier incorporating any or all of our development skills from site selection, planning and design, procurement, fit-out and financing of a project. This approach offers individual occupiers enormous opportunities to benefit from the value created by their own commitment and to achieve a much better overall financial solution on a project. In this context Abstract will work on a full open book basis and will ensure an alignment of interests so that an end user can see it is maximising the potential from a given project as shown in the case studies below:
CASE STUDY ONE : Rosyth Royal Dockyard / Devonport Royal Dockyard
Abstract was appointed by Rosyth Royal Dockyard Ltd in summer 2015 to construct a new 59,000 sq. ft. state-of-the-art Engineering Centre to house 450 staff for the Babcock Marine Sector, as part of their ongoing investment programme on the Fife site.
Based upon the Abstract “Uncompromising Value” model, the building specification was further developed in collaboration with Babcock, to produce a bespoke design specifically for their requirements and finished to full Cat B standard in 77 weeks.
Following the success of this collaborative approach, Abstract was appointed in early 2016 to undertake a similar Design & Build project at Devonport Royal Dockyard, to re-house almost 800 Babcock Marine staff from an adjoining outdated office building into a new facility of almost 87,000 sq ft.
The lessons learned from the Rosyth project, coupled with the appointment of the same professional team and main contractor, helped minimise development costs and streamlined the construction programme, resulting in improved efficiencies which directly benefited the client.
CASE STUDY TWO : Aberdeen International Business Park
The first phase of this project comprising a bespoke 335,000 sq ft new building complex for occupier, Aker Solutions ASA, was initiated by Abstract on behalf of the related Norwegian investment company Aker ASA. Aker was keen that the Group should benefit from the size and value created by this project rather than going into the market to lease a building from another developer. The result of this approach is a complex of 3 buildings which have been leased by Aker Solutions ASA on terms which are more competitive than any other new build in the Aberdeen market as well as providing accommodation and facilities better than any other facilities offered in the market. In addition to the financial benefit to Aker, this also enhanced the tenant’s ability to recruit and retain high quality employees.
CASE STUDY THREE : Xchanging plc
Abstract worked with Xchanging plc who wished to acquire a central London HQ facility and consolidate three offices into one using some of the value generated to provide cover for the disposal of the old offices. Abstract was able to acquire the 50,000 sq ft building, 34 Leadenhall Street, and simultaneously lease it to Xchanging plc. Xchanging benefited from the value generated from the lease with the resultant investment subsequently being sold to Delancey plc. Abstract then managed the disposal of Xchanging’s other existing lease liabilities.
CASE STUDY FOUR : Assura Group Plc
Abstract works with Assura Group Plc, a primary healthcare investor, in a development management capacity, undertaking all aspects of site acquisition, planning and construction delivering the finished product for the investor to then hold in its portfolio.
CASE STUDY FIVE : 100 Middlesex Street, London, E1
A different approach to development solutions is that Abstract will work with an investor or financier to maximise the value of an individual property. An example of this was the project at 100 Middlesex Street undertaken with GE Real Estate. This building had been owned by GE for a number of years and the current tenancies were coming to an end, the building was obsolete and in reality had little existing use value. GE did not wish to undertake the long term redevelopment for the site, but wished to achieve at least its book value for the building and hoped to see a significant enhancement through the activities undertaken by Abstract. Abstract was able, through proactive planning and marketing work, to more than double the value of the site and achieve a sale of the site to Blackstone acting with Generation Estates for high quality student accommodation. The building is now the tallest student housing development in Europe.
CASE STUDY SIX : Queen Victoria Street, London, EC4
A hybrid example of Abstract’s activities is the development at Queen Victoria Street which Abstract undertook with Hines UK. Abstract was appointed by the International Division of the Salvation Army to develop a new International Headquarters on a site owned by the Salvation Army and to also develop a speculative office building on the balance of the site such that the speculative building would finance the development of the new International Headquarters for the Salvation Army. As a result, the Salvation Army now has an award winning Headquarters building as well as receiving a ground rent from the adjoining 90,000 sq ft office development.
Key additional features of the Abstract role :
Abstract will underwrite the full construction costs of the project guaranteeing a fixed price and definitive timescale for delivery of any building, using our robust form of design and build documentation.
Within its development solutions role, Abstract is also able to manage the legal and financial side of any transaction.
