Cautious optimism

Office deals hit five-year high despite home working

Aegon office at Gyle Edinburgh

Aegon’s building in Edinburgh was acquired by Koreans (pic: Terry Murden)

Scotland enjoyed its best third quarter for office deals in five years in spite of concerns that the drift towards home working would drive investors away.

As the economy re-opened from lockdown, investment in offices hit £218 million in the three months, against an average of £116 million for the same period in the past half-decade, according to analysis by Knight Frank.

The market as a whole saw £400m of investment – just shy of the Q3 five-year average of £405m.

Colliers International calculations put the investment figure in the quarter even higher at £477m from a low of £35m in the previous quarter.

The biggest deal in the quarter was Roebuck Asset Management and Hyundai Asset Management’s £133m acquisition of Aegon’s Edinburgh headquarters during July.

There were several significant deals in Glasgow, including Singapore-based Elite Partners Capital’s purchase of 150 Broomielaw for around £40m while the Guildhall building on Queen Street changed hands for around £30m.

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