Foreign investors keep the faith

Jan 11, 2023 - 11:10

“There has been more overseas investment in the Scottish market in the first half of 2022 than we have seen since we started collecting accurate data in 2008,” says Nick Penny, head of Scotland at Savills.

“Over 80% was from overseas capital. The 10-year average to the end of 2021 is just over 40% per year.”

The sale of office development 177 Bothwell Street for around £215m by Spanish property company Pontegadea made up 15% of the H1 total in 2022.

This year also saw the purchase of Waverleygate in Edinburgh in January by American-based Kennedy Wilson for £78m, and Westway Industrial Park purchased by US-based Ares Management for £110m.

In April, Swedish group Heimstaden Bostad agreed to fund and acquire a 464-home residential project in Edinburgh’s Bonnington Road, from build-to-rent developer PLATFORM_, for £124.4m.

Still to fully complete is the St James Quarter, a £1bn development of the old St James shopping centre. The site is being developed as a joint venture between Dutch pension investor APG Asset Management and US asset manager Nuveen.