With returns outperforming most of the UK, Peter Pilz, Managing Director of Edinburgh-based Tremont Investment, explores why there has never been a better time to invest in the Scottish commercial property market.
If you are looking for a good investment with high returns, Scotland should be your number one choice. Recent research found that investment into the Scottish commercial property market increased to £2.2 billion in 2021, an increase of almost 50 per cent in comparison to £1.4 billion in 2020.
Peter Pilz, whose firm Tremont Investment recently expanded from Germany to Edinburgh, said that for overseas investors, Scotland offers an excellent investment opportunity with yields outperforming most the UK.
Overseas investment in Scotland is growing as more investors recognise its financial opportunities. Figures shows that 56 per cent share of spend on commercial property comes from overseas investors, and in 2021, cross-border capital accounted for almost half of office investment by value in Scotland.
Discussing the move to Scotland, Pilz explains that there is the greatest possible freedom of contract when renting out property in the United Kingdom. As well when it comes to residential. In contrast to Germany, where the discussion about expropriations filled the headlines and a rent cap prevents or impairs value creation. Legislature is also forcing investors in Germany to adopt increasingly stringent and, above all, costly environmental regulations, with investors will be only partly able to pass new increased energy costs to tenants.
The United Kingdom also presents an investor-friendly climate through BREXIT. Quick and uncomplicated company formations, as well as liquidations, allows for more time and attention to look at the business, instead of paying too much attention to extensive and complicated regulations.
Tremont Investment MD Peter Pilz is an experienced property professional who has worked for leading service providers in the commercial property industry at partner and director-level. His experience is focused on the fields of office leasing, investment transactions and buy-side advice, as well as the sale of large-scale and high-street retail properties, and office, logistics and healthcare assets.
Tremont Investment’s extensive portfolio of supporting the sale of commercial properties for investors include the sale of a production, storage, logistics property in Hanover, a medical centre in Schwerin, a retail park in Berlin, and more.
For more information on Tremont Investment and property investment in Scotland, contact pilz@tremont-investment.com or visit www.tremont-investment.com.
