Business News Round Up (10/07/2024)
Scottish commercial property investment drops
Investment in Scottish commercial property dipped during the first half of 2024, as uncertainty over interest rates caused investors to take a pause for thought in Q2. That’s according to commercial property consultancy Knight Frank’s analysis of RCA data, which found that nearly £750m was invested in Scottish commercial property between January and June 2024. While this was down 19% on the £922m in the same period last year and 22% below the five-year average of £954m, it was more than double 2020’s £447m. Retail property accounted for most investment by sector type, with a 51% share of the total volume. Hotels made up another 19%, while offices and industrials accounted for 16% and 10% respectively. Real estate investment trusts (REITs) and listed property companies were the most active buyers, with a 32% share of investment volumes. International investors accounted for another 30%, while private capital made up another 20%.
https://www.insider.co.uk/news/scottish-commercial-property-investment-drops-33207810
Boost for new National Wealth Fund to unlock private investment
The Chancellor Rachel Reeves and the Business Secretary, Jonathan Reynolds have today instructed officials to immediately begin work to align the UK Infrastructure Bank and the British Business Bank under a new National Wealth Fund that will invest in the new industries of the future. It comes as Reeves and Ed Miliband, Secretary of State for the Department for Energy Security and Net Zero, convene a meeting of the National Wealth Fund Taskforce at No11 Downing Street to kick start this work. Chaired by the Green Finance Institute, the Taskforce includes former Bank of England Governor Mark Carney, Barclays CEO C.S Venkatakrishnan, Aviva CEO Dame Amanda Blanc and large institutional investors. Under the Government’s new plans, the National Wealth Fund will bring together key institutions and a compelling proposition for investors. This will mobilise billions more in private investment and generate a return for taxpayers.
https://www.gov.uk/government/news/boost-for-new-national-wealth-fund-to-unlock-private-investment
Investors stand ready to back region’s commercial property – Crossley
A clear sign that interest rates are coming down is set to trigger increased activity in the North West’s commercial property investment market, according to Dan Crossley, a partner at independent property consultancy Edwards. Together with Oliver Rowe, Dan Crossley joined Edwards last year and said the firm has enjoyed a strong 12 months despite the market being “stable but quiet”. Originally founded in 1992, Edwards is one of the region’s top office agency practices as well as providing investment, lease consultancy, valuation and building surveying services. Since joining Edwards last year, the investment team Crossley is part of advised on nearly £120m of sales or acquisitions in more than 20 transactions, primarily split between industrial and offices. The industrial market has been “extremely strong, especially with overseas investors”, said Crossley, with signs the office sector is also set to pick up.
Insolvency levels to remain ‘elevated’ into 2025, says Begbies Traynor
Begbies Traynor has warned that insolvency activity will remain “elevated” into 2025 despite improvement in the wider economy. The Manchester-based restructuring firm said higher interest rates and funding challenges in certain sectors will result in further companies going bust or requiring an overhaul. The company, listed on London’s AIM junior market, reported strong revenue and earnings growth over the past year. Group revenues increased by 12% to £136.7 million for the year to April 30. It said this was led by 13% growth in its business recovery division as the turbulent financial backdrop and high borrowing prices put pressure on firms. Ric Traynor, executive chairman of the group, said he expected this activity to continue in the short term. The group also witnessed 26% growth in its property advisory division, supported by expansion during the year.