Edinburgh’s commercial property market is showing life after Brexit, with Knight Frank concluding three deals in the city for a combined £22 million.
Musselburgh’s Eskmills has been purchased by Scottish property company, Newbattle Property Group, in a £7.55 million transaction. The 96,134 sq. ft. office complex is a key employment centre within East Lothian, with approximately 600 people employed on site across a range of 60 SMEs and micro-businesses.
Meanwhile, Shandwick House (67-83 Shandwick Place) has changed hands in a £4.65 million deal, securing a net initial yield of 7.81%. The mixed-use, 23,920 sq. ft. accommodation was bought by Westerwood Development Company, and offers four storeys of office space above three ground-floor retail units.
Finally, an office building in Edinburgh Park has been sold in a near-eight-figure transaction to a London-based investment manager.
Knight Frank believes the deals demonstrate that, while property values have been adjusted, they remain healthy and transactions agreed prior to the EU referendum are still going ahead.
Kenneth Brewster, Senior Capital Markets Surveyor at Knight Frank, said: “Although there was some apprehension over the effect of Brexit on the Edinburgh investment market, demand for commercial property has remained robust. These three transactions show that, despite this time of year tending to be slow, deals are being done and there remains interest for different kinds of assets across the city – and beyond its core.
“It would be naive to suggest that Brexit has had no input on the Edinburgh, or indeed wider UK, investment market. But these deals do indicate that things are not as bad as some feared and the market is holding up well, following an initial adjustment in pricing.
“It’s particularly promising to see the mix of buyers who are continuing to commit money to Edinburgh, a reflection of the underlying strengths of the market and the opportunities it presents. There are a number of other deals progressing in the background, which could herald further good news for the city in the weeks ahead.”
