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The drive to regenerate the site of three former high-rise blocks in the North Sighthill area of Edinburgh has gathered pace.

Four years after the multi-storey towers were demolished close to Napier University’s Sighthill campus, a planning application has been submitted for the creation of 184 affordable homes.

An additional 130 homes will be constructed for private sale in addition to the affordable housing, which will be delivered by City of Edinburgh Council’s  21st Century Homes.

The former Fruit Market on Chesser Avenue, which has lain derelict for 14 years, is now under redevelopment and set to create a multi-million pound retail and housing scheme.

Work commenced on the 8.5 acre site in May and will deliver 58,500 sq ft of retail space with Marks and Spencer, Aldi, Home Bargains and Costa Coffee pre-letting 4 of the available 8 units.

114 homes are also being constructed including 80 council houses funded by public money from the Scottish Futures Trust. The remaining homes for private sale will be two, three and four bedroom properties.

The £38m development is being led by Edinburgh-based developers Ediston Real Estate and RBS.  The bank has sold the residential portion of the site to Chesser Developments.

Danny O’Neill, Chief Executive of Ediston, commented: “The funding of the retail park is the culmination of 2 years of work which has involved obtaining 3 separate planning consents, securing substantial pre-lets including Marks and Spencer and selling the residential development to ensure that work commences on all aspects of the mixed use development.

James Rowney, Head of Real Estate Asset Management (GB) at RBS said: “These agreements mark a successful conclusion to RBS’s involvement in this project and effectively allow us to bring this prominently situated brown-field site in Edinburgh back to life.”

The BP Pension Fund, meanwhile, is providing a forward funding package for the development and will purchase the retail element on completion.

The Scottish SPCA has sold its headquarters at Braehead Mains for an undisclosed the sum. 

The property was originally put on the market at offers over £800,000 but has now been snapped up by Castle Street Developments.

The site, which sits just off Queensferry Road near Barnton, has recently been granted planning consent for 8 new 1,2 and 3 bedroom homes.

Work on the 0.68-acre plot to convert the former stone built steading has now commenced and is expected to complete by the end of 2015.

Justin Lamb Associates and Apple Cross Creation advised Castle Street Developments whilst the property consultancy firm Ryden acted for the landlord.

Data centre operator Pulsant has commenced work to expand what is already Scotland’s largest commercial data centre.

The project will see the addition of two secure data halls to the Tier 3 facility at the South Gyle site with over 150 new racks installed.   Secure storage areas along with new build and configuration rooms will be included.

Matt Lovell, Pulsant chief technical officer, says: “We’re delighted to break ground and see the planning come to fruition. This project is part of our overall expansion strategy and came about due to a real need in the region for additional secure datacentres able to deliver the best technology solutions in terms of uptime, redundancy and support”.

The site in west Edinburgh, one of ten such facilities owned by Pulsant, currently supports over 800 racks across two purpose-built centres and hosts Scotland’s first dedicated internet exchange – IX Scotland.

“The expansion will attract new customers, but also benefit our existing clients who have growing requirements and can easily take advantage of the new space that can be customised according to their exact requirements,” added Mr Lovell.

Construction is expected to complete in August.

One of the UK’s leading providers of serviced offices, Citibase, says the surge in demand for flexible office space from start-up businesses and SME’s encouraged them to open a new business centre in West Edinburgh.

Despite only being open for a matter of weeks, Gyleview House has already signed up its first new tenants with positive discussions ongoing with several other companies.

The immediate interest in the property has come as no surprise to Citibase’s CEO Steve Judge who says he’s seen a sharp rise in the number of new businesses seeking affordable accommodation:

“We are seeing an increasing number of entrepreneurs in desperate need of high quality, affordable office space, yet with more flexible conditions than those traditionally associated with a commercial office building.”

Formerly the headquarters of the Student Awards Agency for Scotland, the three storey 24,000 sq ft building has been extensively refurbished by the landlord London and Scottish.

The building represents the firm’s second outlet in Edinburgh with an existing base on St Colme Street forming part of a 29-strong network of Citibase centres stretched across the UK.

“We are delighted to launch our second centre in Edinburgh in response to increased demand. SME’s now have the choice of being located in Scotland’s premier business park location with superb transport links, or in one of New Town’s most prestigious city centre streets,” added Mr Judge.

A wide range of services will be provided at the West Edinburgh hub including: meeting rooms, virtual offices, reception and business support services with capacity for 375 workstations.  

With the SME sector in Scotland flourishing and core to the country’s wider economic prosperity, the Citibase centre is set to provide a key a role in supporting these new enterprises.

The latest passenger numbers for Edinburgh Airport have revealed the transport hub enjoyed its best April on record, with a 10% rise in passenger numbers on the same period last year. 

A total of 928,328 people passed through the terminal doors with the figures boosted by an increase in both domestic and international traffic.

Routes in and out of London helped drive the rise in domestic passenger traffic with 432,820 passengers travelling through the terminal; an 11.2% rise.

The 9.4% increase in international figures was helped by easyJet’s increase in services to Naples, Lisbon, Prague and Copenhagen, whilst Ryanair scaled up its number of flights Dublin, Barcelona and Corfu.

Gordon Dewar, Chief Executive of Edinburgh Airport, commented: “Our passenger numbers have continued to rise each month of 2015 and last month was our busiest April on record.

"We’ve seen strong performances on both domestic and international routes with London doing particularly well. A number of new routes have also launched since April last year, including Madrid with Iberia Express, Malaga with Norwegian and Copenhagen with SAS.”

Meanwhile, in a further indication of the airport’s growing popularity as a global destination, American Airlines has just launched its new daily service to New York’s John F. Kennedy.

“This new service will make it easier for American visitors to visit Scotland this summer,” added Mr Dewar.

Occupier demand for accommodation at Edinburgh’s first speculative industrial development since 2007 is being driven by renewed confidence in the sector, according to the Edinburgh-based property consultants Burns and Shaw.

West Edinburgh Business Park on South Gyle Crescent is seeing a surge of interest from both local and national trade park operators who are gradually returning to the market.

The 4.2-acre development by J Smart & Co plc will eventually deliver 52,500 sq ft of modern industrial accommodation together with design and build opportunities across its 3 phases.    

Niall Burns, Partner at joint letting agent Burns and Shaw, said: “We have been delighted by the amount of interest the development has generated. Not only is this down to the quality of accommodation our client has delivered, but also the general rise in demand for space of this type.

Phase one of the scheme completed in autumn 2014 comprising 7 units across two terraces of 13,132 sq ft providing individual units from 3,283 sq ft.  The quoting rent is £7.50 per sq ft.

“With the dwindling supply of both existing units and sites capable of taking industrial development, the units at West Edinburgh Business Park are certainly filling a gap in the market,” added Burns.

Phase two of the development is planned to replicate the first phase whilst phase three provides for bespoke requirements of between 10,000 and 40,000 sq ft.

Business owners and residents living to the west of Edinburgh are set to benefit from a new multi-million pound train station which is due to open towards the end of next year.

Work on a strategic new transport hub known as the Edinburgh Gateway station is now underway, with a spokesman for Network Rail confirming that contractors Balfour Beatty are now on site.

The two-storey £25 million project is being constructed close to the Gogar Roundabout and will see passengers connect easily to the Gyle shopping centre and offices at Edinburgh Park.  

But the station will also be a vital interchange for residents in Fife and the north who will be able to reach Edinburgh Airport without having to go into the city centre.

However, there will be no connection with Glasgow and the west after the proposed Dalmeny spur was scrapped by ministers in 2012 to save costs.

Paul Tetlaw, a rail campaigner at pressure group Transform Scotland, said that passengers would be impressed with the standard of the hub: “It will be a high quality station and a high quality interchange, and it will provide ready access into Edinburgh if there are homes built around there.

“People will be surprised by what is planned there – it will be of a similar quality to the new station at Haymarket,” he added.

A huge housing development is also planned for the area with up to 2000 homes proposed for the West Craigs site around the station.

The UK’s fastest growing provider of risk services for the food and drink industry, Acoura, has snapped up office space in the South Gyle area of West Edinburgh.

The firm has agreed to lease just under 5,000 sq ft at 6 Redheughs Rigg from landlord Prudential Assurance. The term agreed was 7 years but the rental price has not been disclosed.

Acoura, which operates in 28 countries, provides certification and advisory services to a range of businesses and public sector bodies. Every year over 25,000 audits and inspections are conducted.

Paul Egan, Chairman of Acoura, said: “The move has already been positive, with our staff much better able to interact and work together to help our customers.  The extra space also ensures we have a modern base in the capital which has room for us to further strengthen our team in the coming years.”

Savills and CBRE acted for the landlord whilst Acoura was represented by JLL.

The Edinburgh-based property consultants Burns and Shaw have secured a significant industrial letting on the Bankhead Industrial Estate in Sighthill. 

The firm has let 1.83 acres of a 4.19 acre development site to Lookers Motor Group. A new 15-year ground lease has been agreed at an annual rent of £64,155.  

Lookers currently operate the Audi showroom which is immediately adjacent and is currently the principle outlet for the German car maker in Edinburgh and the Lothians.

Niall Burns, Partner at Burns and Shaw, said: “We are delighted to secure this deal on behalf of our client proving that there is demand for land from existing commercial operators.”

The remaining 2.36 acres of land is available for let or sale, with the agent advising that there have been a number of “encouraging enquiries” recently.

Royal Bank of Scotland has announced their increased support for budding business tycoons through the development of a new ‘accelerator hub’ at their global headquarters in West Edinburgh. 

The new facility at Gogarburn has been created in the former executive wing of the complex. 

Up to 80 entrepreneurs will receive a raft of benefits including free office space, WiFi and access to specially trained RBS staff and business mentors.

And just when fledgling businesses are seeking a much-needed cash injection, entrepreneurs will also have the opportunity to pitch for growth awards of up to £100,000 from potential investors. 

Ross McEwan, Chief Executive of RBS, said: “It is not just start-up businesses that need to be innovative and forward thinking to thrive and grow; RBS needs to be as well.

“That is why we are opening up our headquarters so that we can support Scottish businesses of tomorrow, not just with infrastructure, but through the chance to collaborate with experts and other like minded business owners. This marks a step change in how we can work with partners to support our local economy.”

One of the key collaborators to the project is Entrepreneurial Spark which was formed three years ago specifically to support the development and growth of start-up businesses. They will extend their successful ‘Hatchery’ concept for early stage start-ups and also provide a ‘Nest’ for high growth, high impact businesses.

Jim Duffy, CEO, Entrepreneurial Spark commented: “We are delighted that Entrepreneurial Spark will be moving into the new RBS Entrepreneurial Centre this year. The support we’ve had to date from RBS has really helped Entrepreneurial Spark in our own entrepreneurial journey, from providing cash investment and physical space in our new cities, through to opening up the group’s extensive business network to us. 

“We have seen a great number of technology entrepreneurs come through the Edinburgh hatchery to date, so will seek to build upon this success as we strengthen our tech start-up offering in Edinburgh, whilst also supporting entrepreneurs from each and every other sector.” 

Also joining Entrepreneurial Spark at the facility will be staff from: Entrepreneurial Scotland; Business Gateway; Napier University; Scottish Edge; The Princes Trust Scotland; The Lens (Scotland’s social EDGE Fund); Big Noodle; Bright Red Triangle; and We are the Future.

The prospect of a new Primark store opening at the Gyle Shopping Centre has moved a step closer following the latest ruling in a long-running legal wrangle.

The popular discount retailer is planning to lease a new 55,000 sq ft store at the centre in West Edinburgh; a letting which is being supported by a raft of tenants at the property, such is the pull of the Primark brand.

But the proposals involve the centre owners constructing the new two-storey building on land currently used for car parking. The plans are being vehemently opposed by the centre’s original join venture partner and anchor tenant, Marks and Spencer.

Clauses in M&S’s lease state that their approval to such changes involving the alteration of car parking, roads or pedestrian routes is required in writing.  

Now Judge Lord Tyre has issued a ruling at Edinburgh’s Court of Session stating that it is “unreasonable” for the retail giant to continue objecting to the development proposal.

After listening to evidence from the Gyle’s centre manager, Andrew Cronie, and architect, Kenneth Williamson, Lord Tyre wrote: “Their evidence was to the effect that the Primark development would be beneficial to the Gyle Shopping Centre as a whole and that the loss of car parking spaces which the development would entail would not render the shopping mall or the shared areas materially less adequate, commodious or convenient to the defender than they are at present.”

It has been estimated that Primark’s arrival at the store could be worth an additional £4.5million in spending to the Capital.

One of the UK’s leading insurer brokers, Bluefin Insurance Services,has relocated their offices on Edinburgh Park in West Edinburgh.

The company, which was previously based at 3 Lochside Way, has opted to take 3,500 sq ft at nearby Leven House, 10 Lochside Place on a seven-year lease from landlord Clearbell Capital.

Bluefin has been on a major UK-wide growth curve with no less than five businesses acquired in 2014, including Scotland’s Regional Insurance Group Limited.

Cameron Stott, director of property firm JLL who represented Clearbell along with Montagu Evans, said: “The demand for space at Edinburgh Park is being driven by a combination of factors – lower costs compared to city centre office space, the quality of the business environment, and its accessibility with first class private and public transport links, including the tram network.”

Bluefin were represented in the transaction by Lambert Smith Hampton.

The owner of Edinburgh Park’s 3 Lochside Way has cited the city’s growing level of occupier demand and improved transport links as key reasons for their significant investment in West Edinburgh.

Aston Property Ventures acquired the former Citibase serviced office facility in July before sinking nearly £1million into a comprehensive refurbishment programme. The 23,700 sq ft building has been reconfigured to provide a range of office suites including individual wings of 3,900 sq ft (sub-divisible to 1,600 sq ft) and whole floors of 7,800 sq ft, making it one of the most flexible buildings in the area.

Debbie Illingworth, director of Aston Property Ventures, said: “There had been little or no investment in the asset for many years. Our aim was to provide a building which offered flexible space solutions, excellent natural light and a modern and contemporary feel.”

That vision has been achieved with occupiers set to benefit from better facilities throughout the three-story building.  A new air-conditioning system, improved core areas and a digital entrance system are amongst the enhancements.

The fresh approach is already delivering results: a new letting was secured in November with American defence and technology giant Lockheed Martin who have taken 4,250 sq ft on a 5-year lease at £16.50 per sq ft. 

The Isle of Man-based firm is hopeful that the improvements to West Edinburgh’s connectivity will help attract a similar caliber of tenant. 

“3 Lochside Way is situated within an ideal location on Edinburgh Park, only 2 minutes’ walk from the new Edinburgh Park Central Tram stop and the local amenities,” added Illingworth.

The joint letting agents, Knight Frank and JLL, say they are dealing with at least one other interest in the accommodation and hope to make an announcement on that in the New Year.

Over 700,000 people travelled through Edinburgh Airport last month, putting the milestone of 10 million passengers in a calendar year within touching distance.

There was a 3.1% rise in traffic during November with the increase largely due to a strong performance in domestic passenger traffic.  More services to London City Airport has helped drive these numbers with British Airways and Flybe both increasing the regularity of their flights. 

Figures were also boosted by a jump in international traffic which was 1.4% higher than the same period last year. Ryanair’s decision to continue its flights to Barcelona throughout this winter and an increased number of services to Dublin, are cited as reasons for this steady growth. 

Gordon Dewar (pictured), Chief Executive of Edinburgh Airport, said: “We’re entering this festive season in a good position after recording strong passenger traffic in November.

"We’re expecting about 130,000 passengers to travel through our airport during the Christmas week alone and we’re confident that we’ll hit our 10 million passenger mark for a calendar year around about this time as well.

"We’ve worked incredibly hard this year to give our passengers a great experience and service and we’re now focusing on 2015 and what it will bring.”

2014 has been another bumper year for the airport with the commencement of Qatar Airways’ service to Doha in May amongst the highlights.   To add to this, American Airlines recently announced that they will fly direct from the Capital to New York’s JFK from next summer.

3 Lochside Way

A newly refurbished office building on Edinburgh Park will provide the size of suites much sought after in West Edinburgh, according to leading property agency Knight Frank.

The 23,700 sq ft building, formerly operated by Citibase serviced offices, sits neatly between two global organisations; finance house HSBC and the drinks brand Diageo at 3 Lochside Way.  It has undergone a comprehensive refurbishment following its acquisition in the summer by Isle of Man-based Aston Property Ventures.

Nearly £1m has been invested by the company in reconfiguring the three–storey building.  A bright and spacious entrance foyer has been introduced together with a range of other improvements, including: air conditioning throughout, an audio-digital entrance system, new decoration and separate utility metering to help keep service charge costs down to a competitive £5.41 per sq ft (including the estate service charge). 

But the biggest change is the introduction of highly flexible office space. Whole floors extending to 7,800 sq ft are available with smaller suites of 3,900 sq ft, and the potential to sub-divide down to 1,600 sq ft, also on offer.  With 52% of all enquiries for accommodation in West Edinburgh under 5,000 sq ft, this range of floor space is likely to be attractive.

Entrance foyer at 3 Lochside Way

The first company to make their move is the American defence and technology giant, Lockheed Martin. Previously a tenant of Citibase, the firm was keen to remain in the building and has taken a 5-year lease on a new 4,250 sq ft suite at £16.50 per sq ft.  It has based 50 of its IT staff there with plans to further expand its operations.

The property was unveiled to Edinburgh’s office agents on Friday by Knight Frank and their joint letting agents, JLL. Associate at Knight Frank Simon Capaldi, said: “What our client has delivered is exactly what is required to meet the current occupier demand in West Edinburgh. We are sure that the flexible nature suites will appeal to a host of occupiers.”

“Of course, the quality of space available at 3 Lochside Way is not the only attraction.  We have 91 car parking spaces plus it’s only a few minutes walk from Edinburgh Park Central tram stop.  The connectivity in the area really is second to none.”

The letting agents say there is strong interest in at least one other suite and hope to make an announcement on that shortly.

Plans to develop a new headquarters building for the British Geological Survey (BGS) at Heriot-Watt University have taken a huge step forward, after planners at City of Edinburgh Council granted their consent. 

Once complete, the Sir Charles Lyell Centre will be one of Europe’s leading centres for research and expertise in earth and marine sciences.   The three-storey boomerang-shaped building will see BGS relocate their existing Edinburgh offices to the purpose-built complex on the education institution’s Riccarton campus.

Incubator labs and offices will also be provided for spin-out and spin-in companies looking to work with BGS and University staff.  The structure will connect via a high-level walkway to the adjacent Enterprise Oil building and feature a shared foyer with views to Edinburgh Castle.

Professor John Ludden, Executive Director of the British Geological Survey, said, “I view the creation of the new Centre as an extraordinary opportunity to broaden our science base by partnering in key areas with Heriot-Watt University, in particular in geology and geophysics related to energy, urban renewal and the sea-floor.”

Professor Steve Chapman, Principal of Heriot-Watt University, said the venture was based on a strong scientific synergy. “The Centre represents a tremendous opportunity, unifying our respective strengths in earth and marine sciences, creating an innovation hub in subsurface geosciences and generating greatly enhanced interaction between academic groups.”

The project is being jointly funded by Natural Environment Research Council, Scottish Funding Council and Heriot-Watt University. 

Completion is due later next year.

Offices in West Edinburgh are expected to see an increase in demand largely due to the Edinburgh Tram and a “severe shortage” of Grade A space in the city centre, according to the property advisory firm JLL.

Although total occupier take-up during the first half of 2014 is down by over 50% on the same period as last year, it is anticipated that these two crucial factors will drive demand levels up for the remainder of the year and beyond. 

According to JLL’s latest office market update for West Edinburgh, there is currently approximately 180,000 sq ft of active requirements for the area, with 27% of those enquiries seeking in excess of 10,000 sq ft.    But it’s the smaller size requirements of 5,000 sq ft and under which is where the majority of occupier demand is accounting for 52% of all enquiries.   

It’s a trend which has been spotted by London-based Aston Property Ventures.   The developer is currently refurbishing 3 Lochside Way to provide flexible suite sizes ranging from 1,600 sq ft to 3,800 sq ft.   The extensive refurbishment works are due to complete in mid-November and judging by the requirement evidence, will be well received. 

Of the deals which did complete in Q1 and Q2 the largest transaction was the letting of 7,200 sq ft to Trig Avionics at Quantum Court on the Heriot-Watt Research Park.   Meanwhile, the insurance broker Blue Fin finally drew their lengthy search for new premises to a close by taking 3,500 sq ft at Leven House on Edinburgh Park.

But the most prolific building in the area was Birch House on the Bankhead Estate. Lettings of 3,534 sq ft and 1,154 sq ft to Barnardo’s Scotland and Enable Scotland respectively ensured that the 10,000 sq ft building became fully let, less than 9-months after its re-launch in May 2013.

The potential for increased transactional activity during the final months of the year is encouraging.  For one thing, the rental gap between prime city centre at £29.50 per sq ft and refurbished Grade A space on Edinburgh Park at £16-17 per sq ft will surely pique the interest of companies.  And with larger city centre floor plates not coming on stream until 2016 to ease the supply problem, West Edinburgh and other peripheral business park locations will be a strong and viable option for space hungry companies. 

Progress of EAST expansion marked by topping out ceremony

Edinburgh Airport’s expansion programme has reached a significant milestone.  Construction of the airport’s new 6,000 square metre EAST expansion building was hailed during a topping out ceremony on 1^st May attended by airport Chief Executive Gordon Dewar and Local MSP, Colin Keir. 

The terminal improvement is part of Global Infrastructure Partners’ (GIP) £150m five year investment plan.  GIP acquired the airport from BAA in 2012 for £807m after the operator was ordered to sell either Edinburgh or Glasgow airport by the Competition Commission.

The addition will open later this year and will help cope with soaring passenger numbers and new airlines.  Amongst the features will be an expanded security hall, shops and waiting areas. Mr Dewar said: “The facility itself is going to be double height, with lots of natural light during the daytime, no columns, so it won’t feel enclosed. It will feel extremely professional.”

One new route which is set to take-off this month is Qatar Airlines’ direct service to Doha in the Middle East.  Flights start on 28^th May and will operate five times per week between the two cities.

Qatar’s chief executive Akbar Al Baker said: “Not only will this benefit the local market in Scotland, but also attract a significant amount of business and trade links for those wishing to travel to Edinburgh from all corners of the world." 

Mr Akbar Al Baker added: “The start of services from Edinburgh to Doha not only offers travellers from the Scottish capital access to the Middle East in under seven hours, but also a quicker journey time to other popular destinations in Asia, India and Australasia.”

On a more local scale, regional airline Flybe has announced its plans to launch a new route between Edinburgh and London City. Starting in October, the four flights per day will provide a vital connection for time-critical business travellers going to and from the City of London and Canary Wharf.

With major infrastructure projects ongoing and new routes being frequently added, Scotland’s busiest airport is continuing to be a strong beacon of success for Edinburgh.

Photo credit: Edinburgh Airport.

West Edinburgh office building back to full occupancy in just 9 months

The UK’s largest children’s charity, Barnardo’s, has become the latest tenant to acquire office space at Birch House on the Bankhead Estate in Sighthill.  

The company has taken the final suite of 3,500 sq ft on a new ten-year lease with a break option after five years.  The deal was struck at an initial rental of £9.50 per sq ft.

Barnardo’s is relocating its fostering division from Torphichen Street in the city centre and expects to be in occupation in early May, following a short period of fitting out.  Around 30 staff will be making the transfer.

Martin Crewe, Director of Barnardo’s Scotland, said: “Birch House offers an exciting opportunity for us to further develop our services to children and young people.  The location is very attractive with ease of access plus proximity to the Bankhead tram and Edinburgh Park railway stations. Car parking is also an important consideration.”

The latest deal follows lettings last year to the US-based Hollander International Systems, who were the first new tenant in July after it fell vacant in May.  One of Europe’s fastest growing semiconductor companies, Dialog, took occupation in November and they were followed in February by ENABLE, a leading Scottish charity.

The letting to Barnardo’s completes 10,000 sq ft of transactions in just 9-months which is a remarkable turnaround according to Cosmopolitan Investment’s Group Managing Director, Iain Mercer. He said: “Less than a year ago we had an empty building and now it is fully let at market rents to four excellent covenants.  Clearly we are delighted at the success of the letting campaign given that, in general terms, tenant demand is well down on what it was five years ago.”

The landlord was represented by Eric Young and Co and GVA James Bar, whilst the tenant represented themselves.

“ Connect at West Edinburgh has highlighted the benefits of this key part of the City. With West Edinburgh seeing it’s highest level of take up since 1999; success stories like Birch House are indicative of increased investment and the creation of new jobs that bolster the local economy.”  - Cllr Frank Ross, Convener, Economy Committee.

Latest development will complete a triangle of hotels on Edinburgh Park

Neatly sandwiched between two office buildings, 4 and 7 Lochside View, is Accor Hotel’s latest investment in West Edinburgh (see picture).  The structure is currently shrouded in a web of scaffolding, but what will be revealed in 3-months’ time is a four-storey 161-bed Ibis budget hotel.

The property company developing it is Buckinghamshire-based Jansons who acquired a 1 acre site from the administrator of New Edinburgh Limited in 2013.  Following a successful planning application, they pre-let the scheme on a 25 year lease to Accor.  The £10m project, which is scheduled to complete in late June, has already been pre-sold to the real estate fund, Axa.

Jansons Acquisitions and Development Director, Michael Tomkins, feels that Accor were attracted by the strategic benefits of West Edinburgh.  He said: “Accor felt very strongly about the location particularly given the Gyle Shopping Centre across the road, close proximity to the airport and the tram stop right outside the front door. Those three factors together meant that they thought it was a very a strong trading location.”

Mr Tomkins believes that the visibility of the site will set it apart from the other hotels in the area and feels the imminent arrival of the tram will have a positive impact.

He continued: “It’s going to be very important for the hotel. Just in terms of a transport link you couldn’t get any closer with the tram stop being just there.  Some of the other hotels in West Edinburgh they’re not quite as visible and they’re certainly not as close to a tram stop.”

West Edinburgh, and Edinburgh Park in particular, is clearly attractive to Accor who opened a 170-bed Novotel at Lochside Avenue in 2008.  It is less than 1 mile away from the Ibis where it overlooks Hermiston Gait Retail Park and is only yards away from a Premier Inn; the third low-budget hotel on the park.

Accor’s reach extends to the city centre too where it opened a 259-bed Ibis at the long awaited SoCo development (also developed by Jansons) on the South Bridge in February.

Commenting at the launch event, Accor’s Chief Operating Officer for UK and Ireland, Thomas Dubaere, said: “Edinburgh is one of Europe’s most popular tourist destinations, attracting visitors from across the globe and this is the first of three hotels which we will open in the city this year.”

He went on: “Our investment in these hotels is another step in our strategy to build on our leadership position and further grow Accor’s presence in the UK.”

Despite the savageness of the economic downturn, world-leading hoteliers haven’t been put off investing in Edinburgh. The fact that Edinburgh Park’s three hotels have all been built during the recession is proof of that. 

A mixture of their strategic location, proximity to the city centre/airport and connectivity via several modes of transport, makes West Edinburgh a viable place to stay for business or leisure purposes.

A move out of the city could be on the cards this summer.

The Scotsman publisher, Johnston Press plc, is considering a move to West Edinburgh when it relocates from Barclay House (pictured).

In December, it was confirmed that the media organisation would be leaving the building it currently shares with The Scotsman and its sister titles:  Scotland on Sunday and Edinburgh Evening News. 

A deal has been struck with the world-leading video games maker, Rockstar North, whose latest release, Grand Theft Auto V, has propelled the organisation into rapid expansion. Rockstar has agreed to take a lease on the entire 75,000 sq ft being vacated by the newspaper group this summer.

Johnston Press is now looking for alternative premises with West Edinburgh firmly on their radar.  An office building capable of accommodating up to 30,000 sq ft is believed to be the preferred size requirement.

A spokeswoman for the media organisation would only confirm that “a range of options are under consideration.” 

But, according to property sources, 4/5 Lochhside View on Edinburgh Park is one which has been viewed, as has 1 Lochhside View where British Telecom is eager to sub-let some surplus space.  

No final decision on a short-list of properties has yet been reached, however.

West Edinburgh office market benefits from renewed confidence in the financial sector

If there’s one thing which came out of the most recent West Edinburgh office take up statistics, it’s that the financial sector, specifically banking, is driving the upsurge.  Following the global financial crash in 2007, this is welcome news.

A report produced in January by property firm Jones Lang LaSalle showed that of the 254,000 sq ft of space acquired by occupiers during 2013 over 54% (138,000 sq ft) can be attributed to the banking sector alone. Deals involving Lloyds Banking Group and Sainsbury’s Bank amounted to 55,000 sq ft and 83,000 sq ft respectively. 

These transactions put an altogether better perspective on the annual figures which still showed 158,000 sq ft of vacancy at Edinburgh Park and 190,000 sq ft at South Gyle.  Though Edinburgh Park and South Gyle still offer a combined availability of 348,000 sq ft, these transactions contribute to the highest level of take up in West Edinburgh since 1999.

Until recently Lloyds held a 50% stake in the supermarket chain’s banking division. A £250 million deal was struck last May for it to sever ties with the state-owned bank, but the transaction only concluded at the end of January.  This leaves Sainsbury’s with full autonomy to develop their business.

Sainsbury’s will shortly make its move to a four-storey headquarters building at Lochside Avenue, only a stone’s throw from its existing premises on the South Gyle Business Park.  It’s a significant sign of intent to scale up from Sainsbury’s who, in 1997, were the first major British supermarket to open a bank.  

Commenting shortly after the deal was announced Sainsbury’s Chief Executive, Peter Griffiths, said: “These are exciting times for the bank and the announcement that we are moving to new, bigger and better premises is just the latest development.

“We have been delivering strong, sustainable growth over the past few years, and as we enter a new phase in our history, it is appropriate that we have new offices that can support our growth plans.”

Their move is coming at the right time. According to Sainsbury’s research around 862,000 Scots are expected to take out a supermarket banking or insurance product this year; so there is plenty of business and market share to be won.

The bank is also planning to significantly grow its staff numbers from 350 to just under the 500 mark by the end of this year. It was reported by The Scotsman last month that these recruitment plans are being accelerated, with Sainsbury’s firmly focussed on entering the mortgage market where Edinburgh-based Tesco Bank has seen success.

It is hoped that securing this number of jobs and retaining such a well-known and respected supermarket brand in West Edinburgh, will provide a catalyst for others to follow suit. 

ENABLE Scotland has cited the ‘strategic benefits’ of West Edinburgh as a prime reason for their move to Birch House.

The charity, which specialises in supporting children and adults with learning difficulties, has signed a 5-year lease with Birch House landlord, Cosmopolitan Investments, on 1,154 sq ft at £12 per sq ft.

The North Lanarkshire-based company chose to merge two of its existing offices at Shawfair (on the southern outskirts of Edinburgh) and Livingston to acquire a single suite on the Bankhead Estate in Sighthill.

12 staff will be based at Birch House, with several of those being relocated from West Lothian.

Area Manager for ENABLE, Elaine Monteith, said: “This move is in line with ENABLE Scotland’s approach to develop a regional office network that is located in optimal locations. Birch House offers us a central and easily accessible office space, giving our organisation a strategic base in Edinburgh.”    

She went on: “This will increase collaborative working, with staff sharing resources and expertise while achieving efficiencies.”

Meanwhile, Managing Director of Cosmopolitan Investments, Iain Mercer, commented: “We are delighted to welcome ENABLE as our third new tenant to the building less than 9-months after commencing our marketing campaign. 

“Like our other two tenants, Hollander International and Dialog Semi Conductor, ENABLE has recognised the strategic benefits of being in West Edinburgh.”

Peter Fraser of letting agent GVA James Barr who represented the landlord, said: “West Edinburgh as a whole is benefitting from an upturn in the office market, but interest was also focused on Birch House as a product.  For example, the smaller suites are not readily available in West Edinburgh and this has definitely proved one of the building’s USP’s.”

Prior to Cosmopolitan acquiring Birch House in 2007, the building formed part of the former Ethicon/Johnson & Johnson surgical sutures factory. The building had been lying vacant for two years before the Edinburgh-based property company redeveloped it into a modern office building.

Birch House now has one office suite remaining extending to 3,540 sq ft which is believed to be Under Offer.

With an eye on both the business and leisure markets, one of the world’s best-known hotel brands has opened in the West of Edinburgh.

Holiday Inn Express Edinburgh Airport is a new £15m, 100-bedroom hotel owned by Glasgow-based Chardon Trading Ltd.

Just a few minutes from the airport terminal, five minutes from Edinburgh Park and 20 minutes from the City Centre, the new hotel offers on-site parking for guests, WIFI and a full breakfast, lunch and dinner menu.

Nicola Taylor, director at Chardon Trading said: “The Holiday Inn Express Edinburgh Airport, is the perfect base for exploring Scotland’s capital city.

“The smart choice for travellers who need a simple, engaging hotel to rest, recharge and get a little work done – whether you’re on the way to somewhere or with us for a week – Holiday Inn Express hotels provide just the things that you need most.”

Attractive transport links and proximitity to Scotland’s capital continue to be a strong draw for West Edinburgh business parks, after it was revealed that one of Europe’s fastest growing computer firms has opened a second office in the Sighhill Industrial Estate.

German firm Dialog Semiconductor has signed a ten year lease on the Estate, citing the fact that the premises is a five-minute walk to Bankhead tram stop as a major key to sealing the deal.  It is expected that the tram system, which is due to open next year, will highlight the importance of West Edinburgh as a business hub.

Dialog, which is a major supplier to computer giant Apple, has taken 1200sq ft at Birch House in Sighthill, and will test components for tablets and MP3 players at its new site.

Cosmopolitan Investments is the landlord at Birch House, and Group MD, Iain Mercer, said the completion of the tram line had generated confidence within the business community.

“The tram stop at Bankhead is a five-minute walk from this building and already the occupiers have identified that as a very good tool for them in terms of attracting staff and being within 15 minutes of the city centre or ten minutes of the airport.

“Certainly Edinburgh Park and the West Edinburgh office market, which has struggled over the last five or six years, is now seeing something of a resurgence.”

Almost 50 acres of undeveloped land, along with 60,000sq ft of office space, ground leases and other licenses are being disposed of at Scotland’s biggest business park. 

SWIP has instructed Jones Lang LaSalle (JLL) on the disposal of New Edinburgh Limited’s assets at Edinburgh Park, after the company went into administration.   The land has existing consent for office and other ancillary uses but may be suitable for alternative uses.

2013 has seen a marked upturn in fortunes for Edinburgh Park – with a number of significant deals taking place, which have seen vacancy rates at Edinburgh Park halve from 23% to 13%, and it is anticipated that this figure will reduce further over the last quarter of the year.

Cameron Stott, Director, Office Agency, JLL said: “Edinburgh Park’s resurgence in popularity amongst occupiers is largely due to the availability of low cost grade A space. However, there is no doubt that the imminent arrival of the tram system in Edinburgh appears to be having a positive influence on occupier and investor decisions. With the promise of frequent transport links to and from the City, Edinburgh Park will be a key location of choice for years to come.”

Edinburgh Park is already host to a variety of blue chip organisations including BT plc, HSBC, Aegon, JP Morgan, Business Stream, Computershare, Lloyds Banking Group and Diageo; with Sainsbury’s Bank and Jardine Lloyd Thomson recently completing deals on the Park.

Reports from two of Scotland’s leading property agents, state that confidence has returned to Edinburgh’s out-of-town property market.

GVA’s latest Big Nine Report, which looks at both city centre and out-of-town property activity across nine of the UKs cities, revealed that for Q3 2013, the Capital had the highest take-up of out-of-town space in the UK; while Jones Lang LaSalle (JLL) recorded more than forty deals during Q3 with 50% of take-up occurring in West Edinburgh.

According to GVA, from July to September 2013, take-up was 151,000sq ft in Edinburgh; with Manchester reporting the second biggest take-up in UK (132,183sq ft), with Leeds following in third (94,260sq ft).  Glasgow’s out-of-town office take-up for the same period was 55,845sq ft.

The Scottish Capital also boasted two of the top five out-of-town deal.  The city’s out-of-town market revival has been bolstered by these two significant deal at Edinburgh Park – Sainsbury’s Bank’s take-up of 83,000sq ft, and Jardine Lloyd Thomson’s take-up of 33,784sq ft.

Peter Fraser, Associate at GVA Edinburgh commented:

“Out-of-town, Sainsbury’s Bank has taken 83,000sq ft at 3 Lochside Avenue, insurance brokers Jardine Lloyd Thomson has taken 33,784sq ft at 7 Lochside Avenue, while Lloyds Banking Group recently bought its lease on the Park (55,000sq ft).“

“Much of this renewed activity is due to the rent differential, with the headline city centre rent almost twice that of West Edinburgh.”

Ben Reed, Director Office Agency at JLL, Edinburgh said that enquiries continue to focus on offices which are well connected into the public transport network and offer good facilities for staff.

“Q3 take up has been exceptionally strong, with some sizeable new lettings both within the city centre but also encouragingly in West Edinburgh,” he said.

“Enquiries are coming in from a broad range of sectors, of which a number are reporting increased headcount as a driver to move.

“With no new speculative development planned there is increasing pressure on modern good quality space and larger corporate occupiers with forthcoming lease events should be alert to the growing shortage.”

Located to the west of Edinburgh city centre, Edinburgh Park is easily accessible by road and public transport, and is just a short drive away from Edinburgh airport, and within walking distance to The Gyle Shopping Centre.

‘Connect West Edinburgh’ is a joint initiative between the City of Edinburgh Council and property agents, which promotes available office space in ten business parks across the west of the city.

Sainsbury’s Bank has completed its highly anticipated deal that will see it move to West Edinburgh.

The Bank, which is moving to accommodate Group expansion plans, has signed a lease on 3 Lochside Avenue and will be transferring all of its existing 350 staff, who are currently based in the city centre, to the new premises in late 2014.

The terms of the deal signed with Aviva Investors were undisclosed.

This is the largest letting in the Scottish Capital in the last nine years and will give the Bank around 8,000sq ft of space over four floors, and neighbours including HSBC, Diageo, BT and JP Morgan.

Jones Lang LaSalle acted for Aviva Investors, while the Bank was advised by Cushman & Wakefield.

In order to survive in a challenging economic environment, businesses have to respond to market requirements – and deliver what the customer wants.  And this is just what Edinburgh’s mixed use developments have been doing.

Not only do they provide speculative development opportunities and on a pre-let basis build to meet demand, they also provide more employment opportunities, improve sustainability and integrate both residential and business use. 

Coming to the fore in the United States in the 1980s, the model of the ‘typical’ business park has significantly evolved from simply being a space for the high-tech companies.  In order to attract and retain a wider range of tenants, developers offer much more than simple office space.

Businesses need to consider staff requirements when they make a move from a city centre location, which is why the business park concept has changed from being a single-use out of town space, to mixed use, sustainable developments which cater for occupiers and local residents alike, providing hotels, fitness centres and nurseries, shops, cafes and banks – all of which are standard provisions in west Edinburgh locations.

Transport links are a big part of the mix too.  Not only is Edinburgh airport – which once again posted record visitor numbers for July – on the doorstep, but the M8 and M9 are within easy reach, as is South Gyle train station.  In addition to this, the West Edinburgh area is well serviced by Lothian Buses and boasts a number of dedicated cycle lanes.

However, if business parks are to continue to play a significant role in contributing to economic growth, they must respond to market requirements and offer complementry services to suit both businesses and their staff.