According to the latest research from CBRE Scotland, investment in Scottish property in the second quarter of 2018 reached £528m, with a significant increase in the value of retail transactions compared with the first quarter. The total is almost double the value of investment transactions seen in same quarter of 2017 (£288m), and also almost double the five-year average for the quarter (£275m).
The quarter was dominated by M&G Real Estate’s acquisition of 50% of Fort Kinnaird Retail Park in 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. CBRE’s busy quarter also involved the off-market sale of 78-90 Buchanan Street in Glasgow for over £30m to a private international investor.
The total £528m was achieved across 31 transactions, with 47% (£248m) representing retail deals, 30% (£160m) on office deals, 8% (£43.5m) on industrial deals and 15% (£76.5m) on deals across the increasingly popular alternatives sector.
Alistair Wright, associate director at CBRE Scotland, commented: “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.
“Sentiment remains strong for prime product and recent activity demonstrates the weight of international money considering Scottish investment opportunities. We expect this to continue into the third quarter and the remainder of 2018.”