Chapel Of Garioch, Inverurie, Aberdeenshire, AB51

Introduction

Pittodrie Estate is a mixed-use rural estate incorporating a diverse range of commercial, residential, agricultural, forestry, natural capital and recreational assets. There is significant potential for further commercial and residential
development of derelict properties on the estate, as well as woodland creation and carbon sequestration.

Lot 1 ? Pittodrie House (about 431 acres)

At the bottom of Bennachie, Pittodrie House comprises the estate?s lowland. It includes a
4-star hotel, residential portfolio, agriculturally productive land, estate policies and woodland.

Pittodrie House Hotel:
Located at the estate?s core, Pittodrie House Hotel is nestled in a secluded and tranquil setting,
within extensive landscaped gardens and policies. It is approached via a long straight private driveway, flanked by amenity woodland.

The driveway curves allowing the landscape to open up revealing Pittodrie House Hotel, which sits
prominently in the foreground of the impressive backdrop of Bennachie and Mither Tap.

The substantial country house is B-listed and is mainly harled with sections of exposed granite.
The roofs are shallow pitched finished in slate with chimneys featured on the gable ends. The house, which is complex in its design and construction, nods to four centuries, yet it is unclear when it first was built. It is known that the Erskine family who owned Pittodrie Estate (formerly part of the lands of Balhaggardy) since the early 1300s, commissioned the build following a fire that destroyed the principal residence, Maiden Castle.
The earliest building fabric includes a wheel stair, believed to date back to 1490. The door panel above the entrance reads 1605, but it is unclear if this was re-used from elsewhere on Balhaggardy.

The oldest section is set across an L-shaped floor plan and three floors. It is most typical of a 17th
century laird?s house with thick walls and an irregular arrangement of rooms.

In 1841, the estate?s heir, Mary Erskine and her husband Lieutenant-Colonel Henry Knight,
commissioned Archibald Simpson, a leading architect at the time, to design and build a three-storey Jacobean extension to the east. It includes a single storey porch and formal entrance to the house.

The interior of the extension incorporates high quality features such as ceiling cornicing, marble
and carved timber fireplaces, decorative timber panel doors and window shutters; and a decorative metal balustrade.

During the early 20th century the billiards room was added, incorporating timber panelled walls
and a marble and granite fireplace.

The house accommodation is shown in detail on the floor plan. The core includes a reception,
drawing room, dining room, orangery, bars, billiards room, library, commercial kitchen and
11 bedroom suites.

Following the death of Lieutenant-Colonel Knight, Mary Erskine and their son sold the estate. The
purchaser, Captain George Smith, who generated his wealth through shipping and later became a
councillor for Aberdeen County, was killed during WWI in the battle of Neuve Chapelle in France.

In the late 20th century, Captain Smith?s grandson, Theo, converted the house into a hotel. The house
was extended to the west for this purpose, almost doubling in size across three floors. It incorporates
a banquet hall, lounge, and an additional 16 en-suite bedrooms. This 20th century addition is
excluded from the listing with Historic Environment Scotland.

Externally within the grounds of the house there is a detached 18th century, two-storey gunroom, a small bothy, a squash court building and car parking.

A short distance from the house, hidden amongst the trees, is a walled garden fully enclosed by a
high granite stone wall. Thought to have been an improvement of Lieutenant-Colonel Knight during the 19th century, the garden incorporates extensive decorative gardens split into seven by hedgerows. It features fruit trees, a lean-to glasshouse and a central sundial mounted on a square plinth.

Although the house is currently used as a hotel, it could be converted back into a principal dwelling.

The Business:
Since 1992 Pittodrie House Hotel has been part of the Macdonald Hotels portfolio and in 2018, all
bedrooms and suites within the house were refurbished to a high standard. The business has a
reputation for quality hospitality and a friendly professional service.

Given the proximity to Royal Deeside, Speyside and Aberdeen Airport, the hotel continues to
attract worldwide clientele drawn to Aberdeenshire for its golf and whisky. The hotel is also a popular
wedding venue and there is capacity for up to 130 guests.

The accommodation, food and beverage and wedding trade has proved to be a successful mix
represented in the healthy turnover and profits.

The possibility to develop the hotel further with additional accommodation and the inclusion of
spa facilities is an added attraction. Sales for the year 2021 were approximately ?1,300,000,
equating to an EBITDA of ?360,000 per annum. Further accounts information is available to those
genuinely interested after viewing the business. Please contact the selling agents for more details.

The hotel benefits from a full premises licence.

Residential Portfolio:
The residential portfolio in Lot 1 comprises two detached cottages, a terrace of three cottages, a block of 18 self-contained flats and a derelict
cottage, with development potential. In addition, there are further derelict properties with potential to be converted or replaced.

Garden Cottage:
Situated to the south of the walled garden, surrounded by woodland and accessed via a
private track is Garden Cottage, a two-storey traditional cottage with harled walls, a slate roof and an adjoining lean-to. The ground floor accommodation comprises a lounge, kitchen, bathroom and bedroom. On the first floor, there
are an additional two bedrooms.

The cottage enjoys a peaceful location, facing west with a stunning outlook towards the hillside.

It is currently occupied under a rent free licence until 31 August 2026.

Farm Cottages 1-3:
Located on the rear driveway is a terrace of three two-storey cottages. They are of traditional construction, with adjoining lean-to outhouses. Each has an almost identical layout including a sitting room and kitchen on ground floor and a bathroom and bedroom on the floor above.

To the front of the cottages is a drying lawn bounded and sheltered by a hedge. At the rear is a driveway providing parking.

Nos. 1 and 3 are occupied under service occupancies, whilst No. 2 is vacant.

Kennels Cottage:
Although benefitting from its elevated position, Kennels Cottage also enjoys the shelter of the
hillside and woodland located to the rear. The cottage, which is currently vacant, is of traditional
Aberdeenshire-farmhouse design and construction, with harled walls and a pitched slate roof. The
accommodation includes a kitchen, lounge and bedroom on ground floor. Dormer windows provide more space on the first floor where there are two further bedrooms and a store/box room.

Externally there is a block of three traditional kennels, various outbuildings, a small garden laid
to lawn incorporating flowerbeds, and a driveway lined with rhododendrons.

Beech Tree House:
Built in 2013, Beech Tree House is an energy efficient, single storey block containing 18 staff suites and is located on the rear drive at the northern boundary of the estate. The house is of
modern blockwork construction, with harled walls and a slate roof. There are both single and double bedroom suites, each with its own external door,
entrance hall and en-suite bathroom. In addition, there is a shared commercial kitchen/dining room and laundry facilities. Car parking is provided to the rear of the house.

There is an adjoining building, clad in timber under a corrugated roof, which houses the biomass boiler that heats the house. The hotel receives Renewable Heat Incentive (RHI) payments for the
energy generated, more information is available from the selling agents.

To the east of Beech Tree House is a general purpose shed of modern steel portal frame construction, clad in box profile sheeting under a fibre cement roof.

Planning/Development Potential

Sawmill Cottage and Steading:
A derelict steading, incorporating a former sawmill and detached cottage, located to the northwest
of Pittodrie Home Farm Steading also has potential to be developed for commercial or residential use,
subject to the necessary planning consents.

The cottage is single storey with harled walls under a slate roof. The accommodation is set across an L-shaped floor plan with kitchen,
dining room, bathroom, lounge and bedroom. It is vacant and in need of comprehensive renovation.
Floor plans of Garden Cottage, Farm Cottages 1-3, Kennels Cottage, Beech Tree House and Sawmill
Cottage are available from the selling agents.

Pittodrie Home Farm Steading:
A redundant and partially derelict L-shaped traditional steading of stone and slate construction, located adjacent to the hotel car park. To the north of the farm steading there is a traditional Dutch barn with corrugated cladding and roof. It is currently used to store firewood.

The steading has potential for residential and commercial development, subject to the
necessary planning consents. Listed Building consent for the demolition of the steading was granted on 8 January 2020 (reference
APP/2019/1522).

We understand that there are a number of planning consents which have been activated and
are therefore live. The planning applications are detailed within the sales brochure.

A design statement was prepared in 2013 in support of a planning application for developing the hotel. The proposal included extending the existing Orangery, Banquet Hall and Crush Hall, creating a new 26-bedroom wing, demolishing and replacing steadings and a farmhouse to form a conference suite and restaurant and the erection of a letting lodge.

Interested parties are encouraged to seek independent advice regarding the planning and development opportunities in respect of the
subjects of sale.

Land and Policies

The land is a mixture of productive arable land, pasture and forestry, extending to approximately 431 acres (174 hectares) in total. It can be analysed as follows:

170 acres Arable
87 acres Pasture and Parkland
158 acres Woodland
16 acres Miscellaneous
431 ACRES TOTAL

The land lies between 130 metres and 210 metres above sea level and is classed as grade 3 and 4 by the James Hutton Institute, meaning it is capable of producing high yields of barley, oats and grass. With regard to forestry potential, the land is classed as F4 and therefore is moderately suitable for this use.

The arable land is farmed in-hand on a rolling Contract Farming Agreement with a local farming
business. It is mainly used to grow Spring Barley. More information is available from the selling agents.

The pasture is let via annual grazing agreements to the same local farmer.

In addition, approximately 9 acres adjacent to Garden Cottage are let under a Short Limited Duration Tenancy to the occupants of Garden
Cottage for the purpose of growing vegetables
for a period of five years, terminating on 31 August 2026. The annual rent payable is ?6,000.

Forestry and Woods

A network of traditional estate woodlands (which provide good shelter and are an important feature of the hotel), driveway, policies and grounds frame the low-lying agricultural land and ultimately the estate as whole.

The woodlands are dominated by mature broadleaves but include elements of productive conifer.

The amenity woods comprise a diverse species mix, including Birch, Rowan, Beech, Ash and
Horse Chestnut.

Following recent storms, including Storm Arwen, there has been significant windblow across the
estate, and Aberdeenshire as a whole. Much of the damaged crops have been cleared, especially those with an immediate impact on the main access to the hotel. These areas will carry an obligation to replant in line with the approved
Long Term Forest Plan and subsequent amendment. A copy of this can be obtained from the selling agents.

Lot 2 ? Bedehouse and East Bennachie Forest (about 931 acres)

On the slopes of Bennachie and incorporating the fort located at the peak of Mither Tap, this lot comprises of a large block of productive conifer woodland and open hill dominated by heather.

Land:
The land is a mixture of hill and forestry, extending to approximately 931 acres (377 hectares) in total. It can be analysed as follows:

285 acres Hill
646 acres Woodland
931 ACRES TOTAL

The land rises steeply in a southwesterly
direction, lying between 210 metres and 518 metres above sea level. It is classed as grades
4, 5 and 6 by the James Hutton Institute. The hill is capable of use as improved grassland and
rough grazings. In terms of forestry potential, the land is classed as F5, F6 and F7. At its highest, it is
unsuitable for planting and the remainder has limited suitability.

Existing Woodland and Forestry

A prominent feature of the landscape on the lower slopes of Bennachie is the extensive and
productive coniferous woodland, which reaches about 380 metres above sea level, wrapping around Mither Tap to the northeast, and creates a picturesque outlook from Pittodrie House and the
surrounding area.

The woodlands extend to some 646 acres (261 hectares) in total and provide an excellent variety
of high yielding conifer crops and assortment of attractive broadleaves.

The main species are Scots pine, Sitka, Norway spruce and larch, generally planted in single species blocks, of varying age classes.
The table withim the sales brochure summarises the current crop structure.

The majority of the Sitka was planted in 1980 and is exhibiting excellent growth rates throughout,
providing a purchaser with a high volume of maturing timber with opportunity to benefit from
immediate tax free timber income. The earliest planting of the Scots pine and mixed conifers dates back to 1930 and 1950 respectively with growth rates variable in correlation to elevation. It is anticipated that the amount of Sitka spruce could be increased following felling.

A Long Term Forest Plan (LTFP) has been approved by Scottish Forestry with phased felling and replanting of the current crop planned to
start immediately, including approximately 56 acres (23 hectares) of bare land awaiting replanting, which was felled in 2019. The first
and second phase is scheduled to start over the next 5 years and includes felling of the mature Sitka and Norway spruce crop.

The forest has suffered from some storm damage caused by Storm Arwen, and subsequent storms,
which has not been cleared. It is estimated that approximately 20 hectares of timber has been affected.

An amendment to the Long Term Forest Plan has been approved by Scottish Forestry to allow the
clearance of the windblown trees in 2022. A copy of the full LTFP and Arwen amendments can be provided upon request from the selling agent.

Access for timber haulage has previously been taken via the rear drive of the estate. A timber transfer point was recently created to the east of Lot 2, south of Kennels Cottage. There is a further potential route for timber extraction from the north via the track from the end of the public road at Rowantree car park, which would require
upgrading. A third party right of access from the south via Braeside exists; however, this does not
lend itself to timber haulage but is suitable for management purposes.

The public road from the A96 to Chapel of Garioch, and then onto the Bennachie Centre, is an
?Agreed Route? on the Timber Transport Forum Agreed Route Map. The section beyond this
junction is not classified on the map but is treated as a ?Consultation Route? and has been used for timber haulage previously.

Sporting, Woodland Creation and Amenity

As a whole, the topography of the estate, with its undulating nature, mixture of high and low land, and woodland blocks is well suited for the
establishment of a driven pheasant and partridge shoot, as well as walked-up days and rough shooting.

Bedehouse and East Bennachie Forest with its coniferous woodlands and open heather hill also provide opportunities for roe deer stalking.

The estate and Bennachie in particular are extremely popular with dog walkers, trail runners, cyclists and horse riders. There are two marked
trails crossing the estate: Mither Tap Causeway and the Turnpike Trail, and a number of unmarked paths and trails which criss-cross throughout the estate and woodland, allow easy access to nature for those who love the great outdoors.

Woodland Creation and Carbon

The forestry and land across the estate offer extensive opportunities for habitat restoration, biodiversity enhancement and carbon
sequestration, either through restructuring of the existing productive forest or new woodland creation.

John Clegg & Co carried out a Carbon Sequestration and Woodland Management Appraisal in October 2021 on behalf of the
current owners. It concluded that approximately 98 acres (40 hectares) of hill ground may have
afforestation potential that could sequester up to 16,000 tonnes of carbon dioxide.

Should woodland creation meet the requirements of the Woodland Carbon Code, the sale of Woodland Carbon Units could provide
significant additional revenue, or opportunities for emmission offsetting purposes.

Basic Payment Scheme Entitlements

The estate owns 109.32 Region 1 entitlements. The Basic Payment Entitlements are included in the sale.

Listings and Environmental Designations

According to Historic Environment Scotland, the following designations exist on the estate:

? Pittodrie House, excluding 1980s three-storey addition and orangery, is B listed (Lot 1).

? The former Gunroom, Pittodrie House, is Category B listed (Lot 1).

? The sundial at Pittodrie House is Category B listed (Lot 1).

? Walled garden including glasshouse, raised bed at centre and sundial are Category C listed
(Lot 1).

? A large pre-historic fort at the summit named Mither Tap is a Scheduled Monument (Lot 2).

? Maiden Castle - a prehistoric fort ? is a Scheduled Monument (Lot 2).

According to Nature Scot, the following designated feature exists on Pittodrie Estate:

? Pittodrie Site of Special Scientific Interest (SSSI) (Lot 2). The site measures 0.4 acre (0.16 ha) and is important for deeply weathered bedrock.

Timber, Sporting and Minerals

All standing and fallen timber, the sporting and the mineral rights are included in the sale insofar as they are owned.

Moveables

All of the contents, fixtures and fittings of Pittodrie House, and machinery and equipment are
included in the sale.

Rights of Access and Title

The property will be sold with the benefit of, and subject to, all existing rights and burdens within
the title.

In the event of the sale of the estate in lots, interested parties should note that the sellers will reserve required rights of access across Lot 1 for the purchaser of Lot 2.

In terms of pedestrian access, there are Core Paths to Bennachie forming part of Lot 2.

Prospective purchasers should be aware, however, that there is a right of responsible access to the Scottish countryside (subject to various
exemptions) in favour of the public throughout Scotland.

The owner of Dower House benefits from a right of access over part of the access route.

A water supply is located within the south east section of the forest. A right of access will be reserved by the purchaser of Lot 1 for all
management and maintenance purposes.

Employees

There are a number of full and part-time staff employed on the estate. As the property is being sold as a going concern, all staff will transfer as per Transfer of Undertakings (Protection of Employment) (TUPE) to the purchaser on the date of entry.

Situation

Located within the Don Valley between the River Don and River Urie, Pittodrie Estate enjoys a
remarkable setting on the eastern edge and foot of Bennachie hill range. Bennachie (meaning ?home?) is a prominent feature of Aberdeenshire?s skyline. It has nine summits, of which Mither Tap is the
most iconic, and is where the estate peaks at 1,699 feet (518 metres) above sea level.

At the base of the hill, the topography and surrounding landscape is contrastingly flat and it is here that the residential assets are located; sheltered and taking in the views of the dramatic landmark above.

Chapel of Garioch, the closest village, is one mile distant and provides primary schooling. Approximately six miles southeast of Pittodrie Estate is the affluent town of Inverurie, known locally as the Capital of Garioch. The market
town provides a wealth of services including secondary schooling, health services, banking, shops, restaurants and bars.

Agriculture is a key industry in the area and the livestock market at Aberdeen and Northern Mart?s
Thainstone Centre is located on the outskirts of the town. In addition, Inverurie hosts a monthly farmers market in the town centre. The other dominant industry is oil, with Aberdeen (the oil capital of Europe) a short drive south on the A96.
Inverurie train station runs services north to Inverness and south to Aberdeen and beyond. The
closest airport with domestic and international flights is Aberdeen International Airport, 17 miles
southeast of the estate.

Comprehensive services are available in the city of Aberdeen, which provides a range of administrative, retail, recreational, educational and cultural facilities. Private education in Aberdeen
includes Albyn School, Robert Gordon?s College and St Margaret?s School for Girls. In addition, the
well-known Gordonstoun School near Elgin is 50 miles to the north.

Aberdeenshire offers an abundance of activities, including fishing, sporting, whisky tasting, golf, winter sports, walking, climbing and cycling. The River Don is one of Britain?s best regarded wild brown trout fisheries alongside a well-established
reputation as a productive salmon and sea trout
river. The River Dee is one of Scotland?s big four salmon rivers with picturesque and productive
fishing for salmon and sea trout.

There are a number of renowned golf courses on the North Sea coast at Royal Aberdeen, Cruden Bay and the Trump International Golf Links. More locally, there are enjoyable 18-hole parkland courses, the closest being Inverurie Golf Club.

Aberdeenshire and Moray are well known for the production of whisky ? and malt whisky in particular. The Malt Whisky Trail is a collaboration
of distilleries offering enthusiasts the opportunity to visit nine local distilleries in order to meet those who play key roles in this multinational industry. It is popular with tourists and adds significantly to the variety of activities available within striking range of the estate. For historians and admirers of
architecture, Aberdeenshire is also home to 260 castles, stately homes and ruins. With more castles per acre in the county than anywhere else in the UK, a route known as Scotland?s Castle Trail covers 311 miles, highlighting 19 of the best examples.