Licensed property market flourishing north of the border
Scotland is becoming one of the most sought-after locations in the licensed property market, according to agent Christie & Co.
Demand for pubs, particularly in Glasgow and the west of Scotland, has so far outstripped the level seen last year and is continuing to increase.
Nicky Finnieston (pictured), from Christie & Co's Glasgow office has predicted that demand will still continue for the rest of the year and even into 2003.
The number of sales completed in the last two months is higher than ever throughout Glasgow and the west of Scotland and is leaving a dearth of quality businesses to meet the demand.
Christie & Co is experiencing a record level of interest on all properties they deal with, from small leasehold pubs to large town-centre sites for multi-purpose venues.
Such multi-purpose venues have taken off in Glasgow recently, with G1 Group's Corinthian and Arta and the popular Lowdown in Bath Street leading the market.
Other operators have followed suit including James Mortimer who recently transformed the struggling Eurasia restaurant into Opus, a multi-purpose outlet where customers can go for drinks, then dinner and then dancing.
Chorion is also moving its Tiger Tiger brand into the Merchant City area of Glasgow later this year.
A number of corporate operators have revealed they are looking for sites in Glasgow this year. Pizza Express, SFI Group and La Tasca are just a few of the companies looking for properties in the city.
Chorion is said to be planning to look for a number of other sites in Glasgow once its Tiger Tiger brand is established.
But it is not just large operators who are moving into the area. There are many first-time buyers and smaller operators who have been helped by the rise in residential property values and have been able to spend more on their business purchases.
These buyers have helped to increase the demand for small leasehold town centre outlets and more rural lifestyle pubs.
Mr Finnieston said it was this area of the market where there has been most growth and added there was an urgent demand for similar properties to service the growing list of buyers.
Values will remain high throughout 2002, said Mr Finnieston. "With this activity set to continue, anybody looking to purchase a business within the licensed sector in 2002 would be well advised to consider what is currently available to them," he added. "Likewise, operators looking towards disposal should consider this to be an opportune time."
