Capital property market remains sound

Edinburgh's commercial property market is proving resilient in the wake of the Brexit vote, according to consultancy Knight Frank which has concluded three deals in the city for a combined £22 million.

Musselburghs Eskmills has been bought by Newbattle Property Group in a near-7.6m deal. Picture: Contributed

The latest work includes advising on the purchase of Musselburgh’s Eskmills by property company Newbattle Property Group in a near-£7.6m transaction. The 96,134 square feet office complex is a key employment hub within East Lothian, with some 600 people employed on site across a range of 60 small and micro businesses.

Shandwick House, on west end thoroughfare Shandwick Place, has changed hands in a deal worth almost £4.7m. The mixed-use, 23,920 sq ft building was bought by Westerwood Development Company, and encompasses four storeys of office space above three ground-floor retail units. Meanwhile, an office building in Edinburgh Park has been sold in a major transaction to a London-based investment manager.

Kenneth Brewster, senior capital markets surveyor at Knight Frank, said: “Although there was some apprehension over the effect of Brexit on the Edinburgh investment market, demand for commercial property has remained robust.

“These three transactions show that, despite this time of year tending to be slow, deals are being done and there remains interest for different kinds of assets across the city – and beyond its core.

“It would be naive to suggest that Brexit has had no input on the Edinburgh, or indeed wider UK, investment market. But these deals do indicate that things are not as bad as some feared and the market is holding up well, following an initial adjustment in pricing.”