Drum Property Group has completed a significant move in Aberdeen's commercial property market by re‑acquiring Caledonia House at Prime Four Business Park and simultaneously agreeing a 103,000 sq ft office letting to CB&I's Asset Solutions business.
Long‑term lease and relocation plans
The deal sees CB&I, formerly Petrofac, commit to a 10‑year lease and prepare to relocate its Aberdeen operations from Bridge View in the city centre to Caledonia House in Q4 this year. The agreement is described by Drum as the largest office letting in Aberdeen since 2017.
Drum originally developed Caledonia House as part of the first phase of the Prime Four masterplan but sold the building in 2012. Its re‑acquisition and the new letting are presented by the developer as a vote of confidence in the long‑term fundamentals of the regional market and in the attraction of well‑located, high‑quality office space.
“Bringing Caledonia House back into our ownership and securing CB&I Asset Solutions 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.”
Graeme Bone, group managing director of Drum, said the move underlined Prime Four’s status as a flagship development for the company and emphasised the resilience of Aberdeen as a regional economic centre.
Operational and market implications
CB&I said its relocation followed a comprehensive review of its existing accommodation at Bridge View, concluding that Prime Four offered cost efficiencies and superior workspace amenities. John Pearson, chief operating officer of CB&I Asset Solutions, framed the move as a transformative step.
“The relocation to our new premises signifies a transformative step forward for the organisation, delivering meaningful financial efficiencies while offering state‑of‑the‑art amenities.”
The transfer is expected to alter the immediate occupancy profile in the city: Caledonia House is currently occupied by US oil firm Apache North Sea, which is scheduled to vacate at the end of August as it ceases production and prepares to exit the UK North Sea market by the end of 2029. The change represents a further moment in Aberdeen’s long industry transition as energy companies reshape their UK operations.
- Landlord: Drum Property Group (re‑acquired Caledonia House)
- Tenant: CB&I Asset Solutions (formerly Petrofac)
- Space: 103,000 sq ft
- Lease term: 10 years
- Move timing: Q4, with Apache vacating end of August
Local agents and observers will be watching how the letting influences take‑up statistics and rental tone across Aberdeen, where demand for modern, well‑specified offices in out‑of‑town campuses such as Prime Four has been a prominent feature of recent commercial activity.
| Item | Detail |
|---|---|
| Building | Caledonia House, Prime Four Business Park |
| Area | 103,000 sq ft |
| Lease length | 10 years |
| Current occupant | Apache North Sea (vacating end of August) |
| New occupant | CB&I Asset Solutions (move Q4) |
For Aberdeen, the deal provides an important signal as the city seeks to diversify and stabilise its commercial base amid wider changes in the energy sector. While the departure of Apache North Sea marks another consolidation in oil and gas activity, the arrival of CB&I highlights continued demand from service and engineering firms for grade‑A accommodation close to the major transport and business links that Prime Four offers.
Stakeholders in the local property market will now assess whether the letting catalyses further transactions in and around Prime Four, and how it affects the balance between city‑centre and business‑park occupier demand going forward.
