Opportunity

Aberdeen: Queen Street


Key Sectors: Commercial/office, Retail & leisure, Tourism and hospitality, Urban Residential

OVERVIEW

A multi-phase scheme with opportunity for flexible investment, including equity or debt finance, plus joint ventures for some or all phases. Phases 1-3, with a GDV of £26.5 million, present opportunities for hotel, apartments, retail and leisure.

PROJECT DESCRIPTION

Queen Street occupies an area of Aberdeen that sits at the heart of the historic city, just above the port, facing onto the city’s main market and at the fulcrum of the route running north to Old Aberdeen. The area has nurtured the establishment and growth of some of the great civic institutions which underpin the city.

The Quarter contains Marischal College, the second largest granite building in the world, the City Chambers and many other Aberdeen civic, cultural and architectural jewels, as well as – crucially – some 1960s and 70s civic interventions making poor use of this key location.

Adjacent to Queen Street is the new (£107million) Marischal Square development (www.marischalsquare.co.uk) comprising a mix of leisure and office uses forming a busy hub within the City Centre. Aberdeen’s main street, Union Street, is within touching distance of the site as are two of Aberdeen’s busiest shopping destinations which are within a 2 minute walk. Recent data on office occupancy demonstrates a doubling of take-up in 2017 to over 37,000 sqm. Oxford Economics has predicted that Aberdeen is set to grow.

The vision for Queen Street is the transformation of the area into a new mixed use urban quarter. Cafes and shops spill out onto pedestrian friendly streets and public spaces. Apartments above provide a desirable residential address. Together with Marischal College, the Lemon Tree and the Arts Centre the proposed mix of uses forms a vibrant urban quarter that is active through the day and into the evening. It becomes a pleasant spot for city workers to take time out during the day, for culture vultures to extend their visit to the Lemon Tree or Arts Centre and for residents to enjoy convenient access to the city centre’s employment and leisure opportunities.

A £30million investment is being made by Aberdeen City Council in land investment to bring control to the local authority.

This is a multi-phase development in a prime location. The opportunity could take various flexible forms (i.e. equity or debt finance) and there are opportunities for joint ventures for some or all phases.

The project has a Gross Development Value of between £100million – £150million. Expected completion of all phases by 2025-6.

Phases 1-3 are scheduled for 2020-21 start and present opportunities for hotel, 350 apartments and 9,000 square metres of leisure and retail. GDV is approximately £150million with initial construction costs estimated at £50million.

PROMOTER AND PARTNERSHIPS

Queen Street is being promoted by Aberdeen City Council in partnership with a number of public sector stakeholders including the Scottish Government.

CONTACT

Richard Sweetnam, Chief Officer – City Growth
T: +44 (0) 1224 522662, E:rsweetnam@aberdeencity.gov.uk
@Invest_Aberdeen

QUICK FACTS

Project Promoter: Aberdeen City Council

Scale: £100-£150 million, 350 apartments, 9,000m² leisure/retail

Project Type: Mixed use, residential led, could include hotel

Location: Aberdeen city centre, Scotland

Investment Type: Equity investor, funder, development partner

Programme: Phase 1-3 start 2020 – complete 2025

Planning Status: Included in Local Development Plan and key project in City Centre Masterplan

Website: aberdeencitycentremasterplan.com

Copyright © 2021 Scottish Cities Alliance. All rights reserved.