Investment in Scottish commercial property was £318.4 million for the third quarter of this year, set against £514.04m for the same period last year.
The £31m sale of a shop and office building in Glasgow to one of Zara owner Amancio Ortega's firms was the largest deal of the period.
According to the latest research from consultants CBRE, office property accounted for the largest share of the quarter and the total figure was reached across 35 transactions, with offices amounting to 29 per cent of the total at £93.71m, 20% on industrial property at £63.8m and 23% on retail deals at £72.16m.
The largest investment deal of the quarter involved Pontegadea’s off-market acquisition of 78-90 Buchanan Street from Lothbury IM at £31m.
A further £60.4m was invested in the leisure sector, with £52m of that accounted for in Jurys Inn owner Fattal Properties’ acquisition of its Jeffrey Street freehold and an adjacent development site in Edinburgh - not strictly considered an investment deal as such by CBRE - with an additional £29.1m invested in the increasingly popular alternatives sector which includes property such as student accommodation.
Other major office deals of the quarter were M&G’s acquisition of 40 Torphichen Street in Edinburgh from Triuva for £22.15m and KanAm’s acquisition of Greenside in Edinburgh for £17.52m from the Chris Stewart Group.
The year-to-date investment in Scotland totals £1.51bn, which is a rise on the five-year average for this point in the year of £1.26bn.
By the end of the year the total is expected to reach upwards of £2bn.
Camille Casey, associate director at CBRE Scotland, said: “The appetite for quality Scottish investment opportunities continued to gather momentum in the third quarter, with an increasing number of UK institutional funds and overseas based investors seeking to invest here.
"Any concerns around Brexit appear to have had little impact on investor demand and in recent months we have witnessed improved investor sentiment across the office, industrial and alternative sectors, primarily due to the yield discount on offer relative to London and our regional counterparts.
"We expect a strong Q4 finish to what has already been a strong year for Scottish investment volumes.”
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