French investors get a taste for Scottish property – Daily Business

The St James Quarter was acquired by a French investor (pic: DB Media Services)

Investors from France have developed an appetite for Scottish commercial property which they regard as “good value”.

In the past six months French buyers have spent £183 million on Scottish office buildings, retail outlets, industrial units, and other commercial property assets.

Among the assets acquired are Edinburgh’s St James Quarter; the Morgan Stanley offices in Waterloo Street, Glasgow; BT’s base in Greenmarket, Dundee; and the Clydeside headquarters of STV.

Since 2024 the overall figure has surged past £450m, making French funds one of the most active international buyers in the Scottish market.

Property consultancy Knight Frank, which compiled the data, said a big contributor to the trend was the attractive yields on offer in Scotland – particularly in Aberdeen and the shire, accounting for more than 15 of the properties, amounting to a total value of around £100m.

More recent transactions include Episcap’s purchase of the Travelodge at 84 Academy Street in Inverness, Norma’s 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.

About half of the total investment is accounted for by Société 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.

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.

“A big part of the attraction is the value on offer in Scotland, with yields higher than other parts of the UK and Europe.

“And 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.”

Euan Kelly, capital markets partner at Knight Frank Edinburgh, added: “Within French investors, SCPIs have been involved in a number of deals across Scotland – particularly at the larger end of the market.

“These 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.

“As 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.”

#French #investors #taste #Scottish #property #Daily #Business