Investment in Scottish Commercial Property set to exceed £2billion in 2018

In the first half of 2018, investment in the Scottish property market hit £1.35bn, which is an increase of 86% on the £731m recorded in the same period last year. Investment in the Scottish property market is set to be more than £2bn for 2018.

The sector that has seen the highest level of investment this year is office property (29%), followed by retail (23%). However, both of these sectors saw less investment in H1 2018 than they did in the last half of 2017. Hotels, industrial and alternative properties saw a higher level of investment than they did in H2 2017.

In the first half of the year, investment activity in Aberdeen exceeded that in both Edinburgh and Glasgow. Sales values in Aberdeen for Q2 2018 totalled £123million, which is 68% greater than the same quarter in 2017. Sales activity in Edinburgh and Glasgow was ‘subdued’. Sales in Edinburgh in Q2 2018 totalled £122m, which is 46% down on the same quarter of the previous year. Similarly, Glasgow’s total sales were £104m, down 42% on Q2 2017.

Investment deals in Scotland

Fort Kinnaird

M&G Real Estate acquired a 50% stake in the Fort Kinnaird retail park in Edinburgh for £167.25m, in one of the biggest retail investment deals of the year.

78-90 Buchanan Street 

CBRE handled the off-market sale of 78-90 Buchanan Street in Glasgow for over £30m to a private international investor.

Princes Exchange and New Uberior House

JSE and MAS Real Estate have acquired two Bank of Scotland-let office buildings in Edinburgh for £71m, in one of the largest office investment deals in the city so far this year.

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