Investment appetite continues

Scots deals show Brexit fears ‘receding’

eskmillsA property developer says fears over the impact of the EU vote appear to be receding as a number of big deals have been announced.

Scottish company Newbattle Property Group has acquired the 96,000 sq ft Eskmills building in Musselburgh for £7.55 million.

Westerwood Development Company has bought Shandwick House, a 24,000 sq ft mixed-use office and retail building, for £4.65m.

The deals follow the sale announced earlier this week of Miller House at Edinburgh Park by London investment company Aprirose for £9.8m.

Knight Frank advised on all three of the deals. Kenneth Brewster, senior capital markets surveyor at the agent, said they showed the initial apprehension following the Brexit vote was receding.

“It would be naïve to suggest that Brexit has had no input on the Edinburgh market,” he said.

“But these deals indicate that things are not as bad as some feared and that the market is holding up well, following an initial adjustment in pricing.”

An office building in Edinburgh’s South Gyle has been sold in a £48.3 million deal in what is regarded as a major endorsement of the city’s continuing appeal to investors.

Commercial law firm Leslie Wolfson acted in the transaction for Manchester-based private clients. The NHS occupies the Grade A site which is fully let until June 2029.

Leslie Wolfson senior partner Howard Beach said: “We have, more recently, seen evidence of private equity investment in Scotland at a time when many funds’ nervousness over the Scottish political situation is creating a clearer path for those who view this as a time of opportunity.”

Over the past year the firm has acted in “a number of other large deals” including the sale of the Clyde Shopping Centre in Clydebank for £68m and the acquisition of the Quartermile Car Park in Edinburgh for retained client Q-Park.

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