scottish news |
SCOTTISH INDUSTRIAL PROPERTY IN ‘BUOYANT’ START TO 2017
very strong start to 2017, according to new research from Knight Frank. The independent real estate
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consultancy’s latest Logistics and Industrial Commentary (LOGIC) report, covering the first six months of 2017, found strong demand in many areas of the country and a lack of supply pushing up rents. It also reported a 54% increase in investment from the previous six
Simon Capaldi
months, up to £88 million from £57 million. Take-up of units above 50,000 sq.ft
increased to 741,312 sq. ft, a 23% rise on the previous six months. All of the deals in this size bracket were in Glasgow, where limited new-build stock is seeing rents approach £8 per sq.ft. at properties with under 20,000 sq.ft.
£17.5M SALE
completion of the sale of Empire House in Glasgow on behalf of Town Centre Securities PLC (TCS). The prominent mixed-use scheme in
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Sauchiehall Street, Glasgow, is located close to Buchanan Galleries, and was acquired by George Capital for £17.5m. The scheme generates more than
£1m of rental income a year and comprises seven retail units with tenants such as Starbucks, Body Shop, Bella Italia, Halifax and property information company CoStar. TCS is a Leeds-based listed property
investment and development company with assets of approximately £375m. The sale of Empire House is the third property in Glasgow sold by TCS to George Capital since the beginning of 2016. Leslie Wolfson acts for TCS in relation to its Scottish portfolio. Senior Partner, Howard Beach,
comments: “Despite the prevailing political uncertainty surrounding the Scottish Government’s position on independence there are always opportunities for property investors and we were delighted to conclude this significant and complex deal on behalf of our long-standing clients.”
COMMERCIAL PROPERTY MONTHLY 2017
lasgow-based commercial law firm Leslie Wolfson announces the
cotland’s industrial property market has built on a solid couple of years with a
Activity in Edinburgh has been
concentrated around the sub-5,000 sq.ft size band, with requirements largely coming from local SMEs and last-mile delivery services. Steady demand, coupled with a lack of suitable, available land, has pushed quoting rents up to £9 per sq.ft. However, in Aberdeen the sustained
low oil price has continued to weigh down on the industrial market. Headline rents have started to fall since the beginning of 2017 and incentives of up to 12 and 18 months are being exchanged for five and 10 year leases, respectively. Simon Capaldi, Agency Partner at
Knight Frank in Edinburgh, said: “For the most part, Scotland’s industrial market is buoyant. A chronic lack of supply and limited new-build activity are forcing rents upwards in Edinburgh and Glasgow, while Aberdeen continues to grapple with its own well-publicised challenges. Landlords in the Granite City are likely to readjust rents and offer further incentives to secure tenants. “The Scottish Government’s revised
threshold for the Small Business Bonus Scheme has successfully stimulated
demand at the smaller end of the market – with more units qualifying for this incentive. From a landlord’s perspective, the overall picture remains very positive: there’s very little new stock coming on- stream and demand is at levels we’ve seldom seen before.” Jamie Fergusson, Capital Markets
Partner at Knight Frank, added: “Investors are chasing industrial property. The growth in e-commerce, coupled with so little new stock, is combining to create a perfect market – the only way for rents to go in the foreseeable future is up. We’ve seen yields sharpen and
valuations rise, which reflects the strength of the sector. Although we are almost at the point in the market where speculative development is viable –– there’s little sign of the market topping out.” Knight Frank LLP is the leading
independent global property consultancy. Headquartered in London, Knight Frank, together with Newmark Grubb Knight Frank and Douglas Elliman Fine Homes in the Americas, has more than 13,000 people operating from over 400 offices across 58 countries.
SCOTTISH PROPERTY AWARDS WINNER R
eeder Ness, a dynamic property development and investment company
and winner of the Scottish Property Awards, recently announced turnover of £1m following 4 years in business. The Edinburgh based company was
established by Alastair Ness in 2013 and focuses on property investments and developments, strategic joint ventures and consultancy work. The past 12 months have been extremely busy for Reeder Ness, acting for clients across the UK, as the major cities across the UK continue to evolve supported by strategic investment in key projects. Current projects for Reeder Ness
include providing development consultancy to Hansteen, a major European FTSE 250 listed company, to secure pre-lets and development manage a £25m retail and leisure development in the south side of Glasgow (the first phase of the 30-acre Darnley Mains Retail Park is due for completion in November 2017); and the acquisition1 of a 110,000 sq ft property in Aberdeen which was successfully sub-let to IKEA, Starbucks and Booker with negotiations ongoing with a major UK gym occupier. The IKEA order & collection point concept is only the 3rd store of this nature to be developed in Europe and the 1st in Scotland.
Reeder Ness has also acquired a
number of residential development sites in Edinburgh, a city that continues to see demand outweigh supply with average selling prices increasing by 6% last month [source ESPC]. Their re-development of 3 contemporary apartments at Allan Park Road, Craiglockhart will be ready for sale at the end of May. A deal has recently been agreed to acquire a further site on the west side of Edinburgh for a proposed flatted / housing residential development. Managing Director Alastair Ness
comments: “With the Brexit process now in countdown mode, coupled with the recent announcement by the Scottish Government to hold another Independence Referendum, it is not surprising these factors have created areas of uncertainty in the Scottish and UK retail and development markets. Retailers are naturally more nervous to commit to opening new stores and it is hugely encouraging that Reeder Ness are involved in advanced negotiations with a number of leading UK retailers who fundamentally see the key Scottish cities as attractive propositions. Recently, on behalf of retained client
Kilmac, we have just secured pre-lets and planning permission for a Starbucks Drive- Thru and Pub/Restaurant at Kingway West, Dundee.”
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