Demolition work has started on the former UK North Sea headquarters of French energy giant Total in Aberdeen.
Total’s old HQ is being knocked down to make way for the Granite City’s first dedicated logistics park, Aberdeen One.
Titan Investors, the firm behind the Silver Fin office development on Union Street, has taken possession of the 20-acre “prime development” site on Crawpeel Road, Altens, after snapping it up for an undisclosed sum last year.
London-based Titan is targeting growing demand for suitable logistics bases around the UK, including from retailers as shoppers demand faster deliveries for their purchases.
Amazon opened a new delivery station at Badentoy, Portlethen, in 2016 but is thought to be is on the hunt for a bigger site.
For years, major distribution companies were priced out of the Aberdeen market by the offshore energy industry.
But a new economic dynamic in the Granite City after the oil price slump has changed the game.
A pre-application to kick-start the Aberdeen One logistics park is expected to be lodged with Aberdeen City Council in the coming weeks, while a 70,000sq ft warehouse on the site is earmarked for an “extensive” refurbishment.
Titan said it had received a “healthy” level of interest from a range of local companies.
Cove-based Lawrie (Demolition) is flattening Total’s old office building.
Aberdeen One will offer bespoke design and build packages from 10,000sq ft up to 200,000sq ft.
Granite City-based FG Burnett and international property firm CBRE are joint letting agents for the development.
FG Burnett director Graeme Nisbet said: “The demolition of the former Total headquarters signals the end of an era for one use on this Altens site.
“However, it offers exciting times ahead for our clients developing this site for an alternative use.
“The newly branded Aberdeen One logistics park will offer a dedicated logistics park for occupier requirements … for bespoke design and build options. This will be
Aberdeen’s first dedicated logistics park and its location offers excellent transport communication links to all major routes.”
He added: “We have already received positive interest to date and as the market continues to improve we are confident that interest levels will increase.”
Earlier this year, a report by property firm Lambert Smith Hampton said industrial and logistics was the commercial market’s fastest growing sector.
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