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Investors from France have developed an appetite for Scottish commercial property which they regard as \u201cgood value\u201d.<\/p>\n
In the past six months French buyers have spent \u00a3183 million on Scottish office buildings, retail outlets, industrial units, and other commercial property assets.<\/p>\n
Among the assets acquired are Edinburgh\u2019s St James Quarter; the Morgan Stanley offices in Waterloo Street, Glasgow; BT\u2019s base in Greenmarket, Dundee; and the Clydeside headquarters of STV.<\/p>\n
Since 2024 the overall figure has surged past \u00a3450m, making French funds one of the most active international buyers in the Scottish market.<\/p>\n
Property consultancy Knight Frank, which compiled the data, said a big contributor to the trend was the attractive yields on offer in Scotland \u2013 particularly in Aberdeen and the shire, accounting for more than 15 of the properties,\u00a0amounting to a total value of around \u00a3100m.<\/p>\n
More recent transactions include Episcap\u2019s purchase of the Travelodge at 84 Academy Street in Inverness, Norma\u2019s acquisition of 101-105 Sauchiehall Street in Glasgow, and Alderan securing 24-28 Frederick Street in Edinburgh, all of which concluded between February and March.<\/p>\n
About half of the total investment is accounted for by Soci\u00e9t\u00e9 Civile de Placement Immobiliers (SCPIs), which are French open-ended property investment funds. Their purchases have included 40 Princes Street in Edinburgh, a healthcare facility on Mearns Road in East Renfrewshire, and the 3T Survivex training facility in Aberdeen.<\/p>\n
Douglas Binnie, capital markets partner at Knight Frank Glasgow, said that even when the French have not been successful in buying an asset, they are usually among the underbidders. <\/p>\n
\u201cA big part of the attraction is the value on offer in Scotland, with yields higher than other parts of the UK and Europe. <\/p>\n
\u201cAnd that is especially true in Aberdeen, where buyer and seller expectations are comparatively aligned and you can pick up good quality assets on double-digit returns.\u201d<\/p>\n
Euan Kelly, capital markets partner at Knight Frank Edinburgh, added: \u201cWithin French investors, SCPIs have been involved in a number of deals across Scotland \u2013 particularly at the larger end of the market.<\/p>\n
\u201cThese buyers tend to favour cleaner properties, with minimal asset management requirements, which can provide a return of at least 7% to satisfy the returns they offer to investors. <\/p>\n
\u201cAs long as Scotland remains good value and the quality of the available stock coming through is right, we expect French investment in Scottish commercial property to continue.\u201d<\/p>\n
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