Interest in quality pubs and restaurants in Scotland has remained high this year, with buyers looking for properties in Edinburgh, Aberdeen and Glasgow, in particular.
That’s the view of Christie & Co’s Mid-Year Review, which reported a strong first half of 2023 for the company as buyers perceived properties in Scotland as better value than in other parts of the UK.
Location, reputation and an outside dining area were said to be high on buyers’ wish lists when scouting Scottish properties, as was the potential to build on existing trade.
Across the UK pub and restaurant prices were said to have stayed reasonably high as demand outstripped supply.
There were also more leasehold deals in the first half of the year when compared to the first six months of 2022.
In the second half of the year, the company expects to see pub companies refinancing, which could lead to more pub sales.
Christie & Co reckoned there are private equity businesses that have been waiting for this to happen, which could lead to ‘some larger deals later in the year’.
“Whilst the pub and restaurant sector has been forced to deal with cost headwinds and rising interest rates, headline trading performance has held up reasonably well, which has helped to retain buyer appetite,” said Stephen Owens, managing director of the company’s pubs and restaurants division.
“Buyers are also taking advantage of more properties coming to the market, with strong activity levels in the leasehold market in particular.
“The lack of significant distress has helped to keep pricing reasonably strong, although rising interest rates has tempered this to some degree.
“We are optimistic that we will start to see more deal opportunities over the coming months once market conditions improve.”
