© Erikka Askeland/DCT Media A flagship Aberdeenshire office building – home to one of the biggest names in global drilling – has hit the market in a £13.6 million deal.
The Portlethen headquarters of KCA Deutag, now part of the US oilfield titan Helmerich & Payne (H&P), has been put up for sale.
It offers what property agents call a “rare opportunity” to invest in a high-yield energy-sector asset.
Marketed by Savills, the 71,599 sq ft Grade A office at Portlethen’s City South Business Park is fully let to KCA Deutag under a lease running to 2036.
This is backed by a parent company guarantee from H&P, the US-listed heavyweight that snapped up the Aberdeenshire-based driller in a £1.5 billion ($2bn) deal last year.
KCA Deutag HQ lease worth £22.5m
The three-storey building, built in 2017, brings in an annual rent of £1.74m, with a total lease value, taking account of staged rent increases, of more than £22.5m.
Investors are being told the sale is a shot at long-term, secure income from a purpose-built energy HQ in the heart of the north-east oil and gas corridor.
The site features striking modern architecture, two interconnected wings, and a host of contemporary amenities including a fully equipped gym, EV charging bays, and a “town hall” style canteen.
Large floor-to-ceiling windows, a central atrium, and raised access floors round out the spec.
Strategically positioned just five miles from Aberdeen, the building offers good access to KCA Deutag’s North Sea operations, with major neighbours including BP and Shell.
Resurgence in activity
Savills say the listing comes as Aberdeen enjoys an uptick in commercial property sales.
The Granite City saw £357m in investment volumes last year – a threefold increase on 2023 and more than double the 10-year average of £160m.
Office space accounted for 36% of all deals, with Aberdeen the second most popular city in Scotland for office investment.
Volumes in this sector totalled £128m, reflecting an 80% increase on the 10 year average and a fivefold jump on the 2023 figure.
“This resurgence in activity can be attributed to investors seeking value, attracted by the generous yields on offer in a market that has found a new level of pricing,” said Savills.
The Porthlethen listing comes just a year after H&P’s acquisition of KCA Deutag – a deal that CEO John Lindsay called “historic and transformational”.
The move gave Tulsa-headquartered H&P immediate scale in the Middle East, increasing its rig count in the region from 12 to 88, while also expanding its offshore footprint to the North Sea, Angola, Azerbaijan, and Canada.
Newly acquired KCA Deutag employs 11,000 people across 26 countries and reported £164 million in pre-tax profits in 2023.
Its Aberdeen HQ supports its European and North Sea operations and serves as a key link in H&P’s global network.
