CB&I Asset Solutions has signed a 10-year lease on Caledonia House at Prime Four Business Park in Kingswells, taking more than 103,000 sq ft of grade A space in what the landlord, Drum Property Group, calls the largest office deal in Aberdeen since 2017.
The tenant is the North Sea business bought out of the Petrofac administration in April. It will move from Bridge View in the city centre in the fourth quarter of this year. Drum says the decision followed a full review of the Bridge View accommodation, which found Prime Four better on both cost and workplace quality. On the landlord’s account, then, the move is expected to cut the property bill as well as upgrade the space.
Drum bought Caledonia House back at the same time as it signed the tenant, in a building it knows well: Drum built it in 2012, in the opening phase of the Prime Four development, and sold it the same year. Caledonia House is currently occupied by Apache North Sea, which vacates at the end of August.
Two things make this more than a routine letting. A ten-year commitment on a six-figure square footage is a long-range vote of confidence in Aberdeen from a business whose parent appointed administrators last year — around 3,000 staff transferred to CB&I when the acquisition completed. And the building changes hands between energy occupiers without a void, which in a market that has spent a decade working through surplus space is a meaningful signal.
Graeme Bone, group managing director of Drum, said bringing the building back into ownership and securing the tenant on a long-term lease “reflects a belief in the long-term fundamentals of the market, as well as the continued attractiveness of well-located, high-quality office space at such a strategic location.” He added: “Aberdeen continues to show resilience and opportunity as a regional economic centre, and Prime Four remains a flagship development for Drum.”
John Pearson, chief operating officer of CB&I Asset Solutions, said the relocation “signifies a transformative step forward for the organisation, delivering meaningful financial efficiencies while offering state-of-the-art amenities.” He said the new premises were designed “to foster a more collaborative and fulfilling working environment”.
The move follows a run of work won since the takeover. CB&I has been engaged on EnQuest’s Kittiwake platform through its decommissioning, and has won a United Arab Emirates contract with Cosmo E&P Albahriya covering Offshore Block 4. No job losses have been announced in connection with the relocation, and neither party has disclosed the rent.
