Investment in Scottish property market doubles

Investment in Scottish property leapt in the second quarter of 2018, with the total value of deals almost double that of a year earlier.

CBREs 'busy quarter' also involved the off-market sale of 78-90 Buchanan Street in Glasgow. Picture: Contributed

According to the latest research from property firm CBRE Scotland, investment during the three months to the end of June reached £528 million.

That compares with investment transactions totalling £288m in the same quarter of 2017 and a five-year average for the quarter of £275m.

The second quarter of this year was dominated by M&G Real Estate’s acquisition of 50 per cent of Fort Kinnaird Retail Park on the outskirts of Edinburgh for £167m and Roebuck Asset Management’s purchase of Princes Exchange and New Uberior House in Edinburgh for £71m on behalf of MAS Holdings.

CBRE acted for parties involved in each of these deals. The firm’s busy quarter also involved the off-market sale of 78-90 Buchanan Street in Glasgow for more than £30m to a private international investor.

The total of £528m was achieved across 31 transactions, with £248m representing retail deals, £160m in office deals, £43.5m on industrial deals and £76.5m on deals across the “alternatives” sector, CBRE noted.

Alistair Wright, associate director at CBRE Scotland, said: “There has been a significant shift to retail sector deals across the last quarter compared to the first quarter of this year, albeit the Fort Kinnaird investment represents the majority of the value.

“We have seen a lack of on-market opportunities across the quarter and that is expected to continue with only one £10m-plus office investment opportunity on the market between Edinburgh, Glasgow and Aberdeen, following the recent closing date at 1 Atlantic Quay Glasgow. Recent activity demonstrates the weight of international money considering Scottish investment opportunities,” he added.