Traditional sporting estates remain hot property
Scotland’s leading independent property consultancy, CKD Galbraith, is reporting that buyers are actively looking to purchase Scottish sporting estates despite the recession.
The firm revealed that prospective buyers for estates have been ‘sitting out the downturn’ and despite the recession, there was competition for each traditional sporting estate that came to the market in 2009.
CKD Galbraith and their partners CKD Kennedy Macpherson in London are involved in the sale, purchase and management of more Scottish estates than any other property consultancy.
The firm predicts a positive year for the sale of traditional Scottish sporting estates on the back of a relatively quiet but successful 2009 and currently has a number of buyers throughout the UK actively seeking Scottish estates.
John Bound, partner at CKD Galbraith, said: “Despite all the predictions of gloom and doom the reality in our experience is that there are still people very interested in buying traditional Scottish sporting estates.
“Of course, the market has been more fragile of late than in recent years. There have been fewer buyers in general but it is the case that there is still competition for good traditional sporting estates and it is the sport that we believe is underpinning in the interest. Also, the long-term investment potential is attractive.
“Many highland sporting estates enjoyed by far their best grouse shooting for very many years last year and you only have to look at the publicity the start of the salmon fishing season generated to recognise the level of interest that exists in country sports.”
The time and effort invested into the management of grouse and the good weather weather worked in favour of grouse according to Robert Rattray, partner at CKD Galbraith responsible for sporting lets. The Monadliaths in particular witnessed a strong resurgence, with a number of moors shooting record bags in excess of 1000 brace.
Mr Bound added: “There has been talk of a downturn in the estates market. However, what I believe is happening is that people are confusing the sale of large rural houses with small amounts of land with traditional sporting estate sales. The two of course fall into very different categories.
“Like all residential property, the value of large houses was affected by the recession whilst the Scottish estates market generally held up well throughout 2009. We experienced a successful year, marketing the sporting estates on our portfolio, and achieving on or around the guide price set.”
Notable estate handled by CKD Galbraith in 2009 include:
- Langwell Estate, Wester Ross, a first class west coast deer forest and sporting estate, totalling some 17,000 acres, with a lodge and four cottages, an average cull of 23 stags and 35 hinds, salmon fishing on the river Canaird and the Rappach water, trout fishing in some 40 hill lochs and a few grouse.
- Corrybrough Estate, Tomatin, a renowned Highland grouse moor, extending to some 3800 acres, with a lovely 10 bedroom lodge three cottages, salmon fishing on the river Findhorn and a five year average of some 193 brace of grouse, together with a challenging lowground shoot.
- The recent sale of Camusrory on the Knoydart Peninsula proved an interesting landmark transaction in the Scottish rural property market. Camusrory is a traditional stalking property of some 8,000 acres with a modern traditionally styled lodge, three further residences and useful outbuildings. The sport includes stalking, fishing and ownership of the entire River Carnach system and occasional woodcock. The vendors wished to retain a 50% interest in the property and a like minded purchaser was identified.
- Lochindorb Estate - a fantastic and very productive grouse moor, near Grantown-on-Spey. Extending to just over 9,000 acres, Lochindorb has produced consistently good bags, with a five year average of 916 brace, and a bag last season of around 1200 brace, with 165 brace on the best day. The estate includes a traditional nine bedroom lodge in a magical, lochside setting, three cottages, a number of trout lochs, together with some enjoyable rough shooting.
Scottish Estates have been less vulnerable to decreases in value because in most cases they are made up of a diverse range of property types and represent a balanced portfolio. The residential element of an estate usually comprises houses and cottages which are in scenic and unspoilt areas. Such properties will sell in any market due to their scarcity. In addition, many estates have potential for renewable energy projects such as wind farms and hydro power schemes which can also add significant value if consented.
Farms and forestry are two asset classes which have not suffered falls in values during this recession. Farm land values have remained stable due to scarcity, buoyant livestock prices, the exchange rate and Inheritance Tax reliefs. Forestry has actually increased in value in 2009 due to strong demand from investors and processors. Forestry funds and private individuals see timber as a commodity with a bright future which will be competed for by the energy, construction and paper industries. The tax reliefs and the fact that forestry qualifies for private pension schemes add to the attraction.
Whilst the recession has taken some purchasers out of the market and the very high premiums paid over valuation up until late 2007 are perhaps at present now a thing of the past, the values of the component parts of estates remain robust.
With a network of twelve offices throughout Scotland from the Borders to the Highlands, along with the association with CKD Kennedy Macpherson in London, the firm offers an unrivalled national presence with personalised local expertise.
For more information, visit ckdgalbraith.co.uk.
