An Aberdeen office block once valued at about £5 million has been sold at auction for just £20,000.

Business rates and the downturn in oil and gas has seen the Salvesen Tower go from a thriving hub to a concrete shell at the harbour.

Last week the 11-storey building complete with a pub, a warehouse and 112 parking spaces, sold at auction for 0.4% of what it was once worth.

It has not yet been confirmed who bought the building.

Eric Shearer, a leading north-east surveyor and partner at Knight Frank, said the excess supply for office space and little demand, coupled with crippling business rates, would likely result in more buildings going for a fraction of what they’re worth in future. Mr Shearer said Custom House on Guild Street recently sold for £1m despite being valued at around £4m.

He said: “The buildings are worth nothing without tenants, and when you have to pay out hundreds of thousands of pounds in business rates on vacant properties owners find themselves left with little choice but to sell for a ridiculously small sum or to knock it down.”

North-east region Scottish Conservative MSP Tom Mason said: “I would like to see the tower full of firms doing well, despite the hurdles placed in front of them by their own government.”

Minister for Public Finance Kate Forbes added: “Our reforms following the Barclay Review of Non-Domestic Rates will support growth, improve administration and increase fairness for all rate payers.”