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Head of property services at Aberdeen’s leading commercial law firm Paull & Williamsons, Colin MacLaren suggests there are opportunities for investment in Scotland in the months ahead.

He returned last week from the MIPIM – 2009 – the prestigious property event in the south of France. Colin and property partner Richard Goodfellow were part of Team Scotland – a Scottish Development International initiative that has been set up to attract international investors to Scotland.

The MIPIM 2009 conference, held in Cannes from March 10-13, is the world’s premier property and real-estate platform and although numbers were down this year there will still more than 20,000 participants from 89 countries gathered for a series of seminars and networking events.

Colin MacLaren said: “MIPIM was dominated, as you would expect, by the effect of the credit crunch on the property world. Whilst numbers were very clearly down there was a much greater focus this year on the serious issues facing the property world. The mood was generally business-like and serious.”

He added: “Perhaps it was the sunshine of the south of France, but against the recent doom and gloom there were definite signs that there are still those with money and indeed that new money is preparing to invest – we just have to find the transactions and returns to interest them.”

Given the lack or reduction in senior debt funding there is now a global search for equity to allow deals to be completed. Talk was of joint ventures, private equity, new investment funds and co-operation to provide more chance of transactions actually happening albeit at the cost of shared returns.

Colin MacLaren added: “There seemed to be many attending with investors lined up behind the scenes preparing to invest. Whilst it is easy to refer to these potential investors slightly disparagingly as ‘vulture funds’ or ‘opportunity funds’ they will be vital to the revitalisation of the transactional market place and these investors have now to be encouraged where possible to come off the fence and start dealing.”

Securing the release of that investor cash will take the best of deals as they look for the best returns on the finite availability of capital. 

Encouragingly, there was a strong suggestion from some quarters that the market is bottoming out and that buying opportunities have not been better for the last 15 years or more.  Part of that optimism seemed to be generated by the moving closer of buyer and seller expectations on price and returns. Quality products should be the first to stabilise and recover and with realistic prices now in available hopefully transactional activity can be regenerated.

Colin added: “At MIPIM there was acceptance that even if we are at the bottom now the previous financial models and structures have gone and that the structuring of deals would need new and innovative approaches. If the spirit of co-operation and thirst for deals is there we have got to believe that the talent within the property industry will find ways to keep the market moving and to return to a mood of confidence. The banks undoubtedly still have their part to play and we have to believe they will be able to provide debt to assist in the recovery of markets as we move forward.”

Paull & Williamsons was joined by lawyers and accountants from three other firms from the UK and the US, who are all part of the TAG Property Group a real estate speciality group that provides a global network of legal and accountancy services. Through its connection with the global legal network TAGLaw, Paull & Williamsons has been able to represent clients throughout the UK and Europe and further afield. The TAG Property Group at MIPIM also included New York law firm Herrick Feinstein, London firm Boodle Hatfield and UK business advisory practice DTE Group.