Commercial matters autumn winter 2016 Galbraith

Commercial ISSUE 4 AUTUMN/WINTER 2016

MatterS

Keep calm and carry on

The big picture on Brexit

pluS: The occupier's dilemma | Cost of Brexit on construction materials | Working with listed buildings | Planning reform in Scotland? | Focus on the Borders

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WelcoMe

coNteNtS

The world keeps turning…

WelcoMe to issue four of Commercial Matters.

The news following the shock result of the EU Referendum is full of speculation and prediction about what will happen and questions over how the property market will be affected as well as what impact it has had to date.

The answer? Simply put, it’s too soon to tell until there is a clearer picture on terms negotiated between the UK Government and the EU. The articles in this issue provide more detail and commentary on the potential pitfalls and also the scope for opportunity following the Brexit vote.

The experience across CKD Galbraith is that it is business as usual, we are witnessing good levels of interest in property across all sectors with closing dates being set and also renewed requirements from parties looking for investment opportunities in Scotland and across the UK. There may be uncertain times ahead, but, for now, the world keeps turning.

Moving away from Brexit, we also cover the increasing demand for out-of-town office space, redevelopment and refurbishment considerations, and a potential shift in the planning system on the horizon.

We hope you find the articles of interest and, as ever, we welcome your feedback – so please do get in touch with any of the contributors via email, telephone or social media for further information.

4 Surprises in the Scottish planning review.

5 A light touch for a dark office.

The big beach clean-up.

6 cover story: The calm after the Brexit storm.

Brexit's impact on construction costs.

8 Deal round-up.

9 Focus: The Borders.

Harry Stott

harry.stott@ckdgalbraith.co.uk 01786 434630

10 cKd galBraItH is Scotland’s leading independent property consultancy. Drawing on a century of experience in land and property management, the firm is progressive and dynamic, employing more than 250 people in offices throughout Scotland.

The firm provides a full range of property consulting services across the commercial, residential, rural and energy sectors.

Renovating a classic building.

Demand for rural development land.

11 A week in the life...

CKD Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances.

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Commercial Matters is produced by JK Consultancy, Glasgow, and designed by George Gray Media & Design, St Andeux, France. © CKD Galbraith LLP.

Are you in or out?

Pamela Gray examines the city centre vs business park options facing office occupiers. tHe Brexit vote may be over, but another in/out dilemma challenging many businesses is whether to locate in or out of the city centre.

This is particularly so in Edinburgh where the imbalance between supply and demand in the city centre has meant that, depending on the size category, there is such competition for space that incentive packages have reduced dramatically, with upward pressure on rents.

The main options for occupiers are city centre, edge-of-centre and out-of-town/business park locations. While the underlying drivers of demographics, working practices and transport links have recently led to an overall increase in demand for city centre premises, other factors can influence the final choice. The city centre is generally expected to score highly

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on connectivity and on provision of amenities, but, for some employers, access to motorway networks is the key measure of an ideal location.

For others open space and proximity to a particular workforce or affordable suburban housing are the main determinants.

City centres attract large numbers of young people, vital for staff recruitment and retention.

Better transport provision has given companies the chance to promote sustainability. They encourage and support the use of trams, buses and trains along with increased opportunities to walk or cycle to work. New and refurbished buildings are expected to offer associated facilities such as showers, changing rooms and bike racks. This has increased demand for city centre offices, but, with demand outstripping supply in key cities such as Edinburgh, rent and rates increases are inevitable.

Some occupiers will opt for out-of-town locations, driven by their proximity to strategic road and air links, the location of key employment clusters and the obvious cost advantages. Office parks with the right mix of amenities and transport connections can sometimes outperform city centres. Also, the car-parking ratio is usually better outwith the city centre and often included in the rent. Some occupiers who have historically regarded having a prime city centre address as sacrosanct are now questioning whether they really need to

be paying premium rents to accommodate the entire workforce in one location, particularly when the costs of occupation could potentially be halved by moving to an edge of town address. As a result we are beginning to see a growing number of large space users looking at a mix of city centre and edge-of-town options, keeping key teams together; preserving the city centre address while reducing overall occupational costs.

With rents set to continue to rise in the city centre, there will inevitably be a knock-on effect on rents in edge-of-town locations. A prime example of this is on the western edge of Edinburgh’s city centre, where deals to HSBC, Origo Services and JP Morgan have soaked up much of the supply of good quality, modern office accommodation within the Gyle and Edinburgh Park, again leading to upward pressure on rents. We have even seen the re-introduction of the closing date – unheard of in recent years.

“

We are beginning to see a growing number of large space users looking at a mix of city centre and edge-oftown options.

The good news for occupiers is that there are options to suit their accommodation criteria and, with ever more flexible leases, the chance to evaluate space requirements to aid business performance.

pamela.gray@ckdgalbraith.co.uk 0131 240 6963

www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial | Commercial Matters Autumn/Winter 2016 | Page 3

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Planning reform afoot?

Jamie Grant highlights some surprises from the Scottish planning system review.

IN September 2015, Scottish Ministers appointed an independent panel to review the Scottish planning system.

Its report 'Empowering Planning to Deliver Great Places' was published in May 2016, and Scottish Ministers published their response in July.

Despite a title that suggests another planning document with an urban housebuilding focus, the review looks well beyond this core topic. It assesses the structure of Scotland’s approach to planning and the tools currently available against six foundation outcomes that the Government and the panel agreed define a successful planning system (see panel).

Foundation outcomes for a successful planning system l Strong and flexible development plans l The delivery of more high quality homes l An infrastructure-first approach to planning and development l Efficient and transparent development management l Stronger leadership, smarter resourcing and sharing of skills l Collaboration rather than conflict – inclusion and empowerment

None of this feels particularly new, and in recent years best practice approaches to planning in all spheres have become notably more collaborative. However, the approaches that the report concludes are best for delivering these outcomes do contain a few surprises.

The focus recently has been on regularly updated plans, but the report concludes that a longer, ten-year lifespan for Local Development Plans (LDPs) is more suitable to deliver desirable outcomes and efficient use of planning department resources. However to maintain relevance, flexibility to update plans should be introduced.

Development plan examinations and reporter involvement in the emergence of LDPs could be removed by a process of gate checking.

The primacy of the development plan should be retained (although they should lean hard on

Scottish Planning Policy to avoid repetition).

However, structure plans should be chopped.

To plug the gap this would leave, and aid uniformity in delivery, the National Planning Framework should be enhanced, integrating fully with government policy and strategies and effectively addressing region-wide infrastructure issues, including housing land delivery.

To facilitate this, new mechanisms should be established so that planning authorities can assemble land and provide infrastructure.

This could be helped by a corporate structure requiring all key infrastructure providers to co-operate in delivering the local development plan. Such a structure would place a demand on local authorities and their partners to become much bolder in their approach to infrastructure investment. This could prove difficult with current human and capital resources.

Planning fees for major applications should be increased substantially to assist moving the service to full cost recovery. With such a commitment should also come greater performance. To aid this and to increase high quality decision making, some specialist areas of planning support (GIS, environmental assessment, conservation etc.) should be pursued under shared services.

There seems to be a rebalancing at play here.

While local authorities appear to be getting more power, the stick to beat them with is also getting bigger and centralised oversight becomes far more significant. Perhaps this isn’t unreasonable given the planning system’s failure to deliver in some key areas, but the failures to deliver are as much about markets and funding as they are about systems.

Anyone working with planning authorities recently cannot help but feel they need far greater support before their under-resource starts becoming a significant barrier to economic development. In that regard, increased fees, if they are ring-fenced and associated with clarity and certainty in decisionmaking, do not seem unreasonable. We eagerly wait to see how the change will play out in the months and years ahead.

jamie.grant@ckdgalbraith.co.uk 01786 434638

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Let there be light Pam Over reports on an effective way to deal with lack of natural light.

CKD Galbraith has recently completed the full refurbishment of the first floor of Norfolk House in Birmingham on behalf of a client.

The floor, which extends to 18,700 sq ft, has windows on all four elevations but suffers from a deep central space with limited light.

The intention was to emulate the very successful refurbishment of the second floor, which we completed in 2014. While this level’s configuration mirrors the first floor, we were able to puncture through the slab to the light well above and create a line of six roof lights to transform the office space below.

As this solution was not possible on the first floor, the design dilemma was solved by the M&E engineers, ESC, who suggested using Barrisol Lights.

ensure even lighting that closely matches the colour of daylight, thus giving the effect of a roof light, without the need for an external space above. In terms of maintenance, the LED fittings need to be replaced once every ten years and, as the entire unit is sealed there should be no cleaning or dust issues.

Barrisol is a stretched flexible ceiling system made with a non-toxic polymer, which is 100% recyclable and strong enough to support masses of 150kg without breaking before returning to its initial form.

The polymer ceiling was stretched between supporting rails at the perimeter using heat. It then shrinks to form a flat ceiling surface once the heat is removed. Sections were illuminated using LED strips installed in a sealed box behind the flexible ceiling, with the spacing and brightness of the strips carefully planned to

The result is so successful that prospective tenants and agents have tried to look up at the sky before realising it is not actually a window.

The client is delighted with the finished effect, which gives the impression of roof lights in an otherwise deep plan office space, vastly improving the look and feel of the floor.

“

Prospective tenants and agents have tried to look up at the sky before realising it is not actually a window.

pam.over@ckdgalbraith.co.uk 0131 240 6965

Turning the tide on litter Jill Gayford rolls up her sleeves with the commercial team as they do their bit for the environment.

June saw the CKD Galbraith Edinburgh office take part in a beach clean and survey for the Marine Conservation Society (MCS) to help care for the coastline.

The team of 19 donned ‘Keep Scotland Beautiful’ tabards, grabbed litter pickers and combed a 100m stretch of Seaton Sand’s beach in East Lothian as part of the firm’s wider Corporate Social Responsibility initiatives in local communities.

Glorious sunshine helped to keep spirits

high as the nine teams competed to find the most bizarre piece of rubbish on the beach: a plastic sit-on car.

In all, 11 bags were filled with 37kg of waste, including cigarette ends, plastic bottles, crisp packets and ring pulls – all dutifully logged for MSC’s annual Beachwatch Big Weekend Report, which has helped influence government policy, industry practices and raise awareness of the impacts of waste and litter in our

seas on marine wildlife, people and our fishing and tourism industries.

The day was a great success and after all the hard work, the teams enjoyed a barbecue and garden games where competitive streaks thrived once more.

jill.gayford@ckdgalbraith.co.uk 0131 240 6987

www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial | Commercial Matters Autumn/Winter 2016 | Page 5

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Business as usual... for the time being James Taylor offers an inside view of the impact of Brexit on construction costs.

In the aftermath of the extended uncertainty within the UK construction sector following the UK’s decision to leave the EU, I spoke to Scott McMillan, Contracts Director at Insite Contracts, for some real insight on his patch across Scotland and the north of England.

Amidst warnings of dramatic price increases in the cost of imported materials and component parts used in construction after the EU Referendum, manufacturers and suppliers to the construction sector have been cautioning distributors and wholesalers about incremental and phased price rises ranging from 3% to 7% to bridge the gaps in the GBP to Euro exchange rate.

According to Scott McMillan, with whom CKD Galbraith works closely on refurbishments, fitouts and maintenance, these effects have not been felt on the ground.

He said: “We have not had any feedback from suppliers that would currently change building rates or impact on tender prices.

Obviously, we’ll monitor the longer term effects of this, but at present we’re continuing to price work competitively to try and bring in new contracts.”

One area Insite Contracts has noticed the ‘Brexit effect’ is in the larger value contracts market where there has been a slowdown in awarding £500,000-plus contracts.

The wider uncertainty means building owners and developers are taking longer to consider their position while they try to gather a better picture of the possible changes to future markets.

Such delays in instructing these works leave contractors

like Insite Contracts in a state of limbo, but Scott is hopeful this uncertainty will be short lived. He said: “The same uncertainty was present in the lead up to and after the Scottish Independence Referendum in 2014. We are hopeful that over the next three to four months things should calm down and we get back to the more settled market seen in 2015 and the start of this year.”

In the smaller value projects, or where works are required

“

We have not had any feedback from suppliers that would currently change building rates or impact on tender prices.

to continue asset maintenance or improvements, both Insite Contracts and CKD Galbraith’s Building Surveying team have seen little slowdown in clients’ appetite to proceed with works.

It is very much business as usual.

Brexit Britain James Galbraith provides the big picture perspective for a post-Brexit Britain. cHINeSe premier chou en-lai, asked by president Nixon during his historic visit to china in 1972 what he thought had been the impact of the French revolution on western civilisation, said it was “too early to tell”.

That was nearly two centuries after the event.

Given the very short time frame since the unexpected result of the EU referendum, it is much too early to tell its impact on the UK and globally. However, it has undoubtedly created huge political and financial uncertainty and swept away many of the economic assumptions on which business leaders and investors have based their decisions over the past 40 years.

Amidst all this uncertainty, it is important to see the big picture and draw confidence from seven core tenets that the UK will continue to attract investment and business.

1

The UK economy is the fifth largest in the world (US$2.85 trillion) and will remain an important global trading partner.

2

London is the dominant financial centre in Europe. There is little prospect of the City being dislodged given its inherent advantages with a large network of financial and professional services.

As the alarm bells continue to ring over import costs, and the already imported supplies begin to diminish, price increases, to some degree, will be inevitable.

The extent to which this is passed on to owners and investors remains to be seen, but one thing is clear: now is the time to proceed with a project to gain the benefit of lower material cost, maintain tenderer competitiveness and keep confidence in an ever more politically and economically challenging world.

james.taylor@ckdgalbraith.co.uk 01786 434610

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tain: Keep calm and carry on 3

English is the pre-eminent global language for conducting international communication, trade and cultural exchange.

4

The UK is a stable democratic state with an established and proven political system, negligible corruption and sound government.

5

The government and the Bank of England recognise the economic risks of Brexit and are ready to act to support the economy. Indeed, the Bank of England has already reduced interest rates.

6

Britain has extensive global trading connections, such as the Commonwealth, which will continue to support its economy.

7

The pound will continue to be a floating currency, which can provide a buffer to economic shocks. The devaluation of the pound since Brexit has boosted domestic industry although it may threaten inflationary pressures.

Assuming that a fair and sound settlement can be negotiated by the UK as it leaves the EU, it is reasonable to expect the British economy will thrive, even if there is some awkwardness and tricky moments along the way.

Since June 24, commentators have appeared anxious to report on the 'Brexit effect' on the economy. In the property sector, with which we are particularly concerned, there are reports of faltering house prices and, in the case of agricultural land, falling demand due to the Brexit vote and resulting confusion

over the future of Common Agricultural Policy payments.

This is not entirely our experience of the Scottish market. Demand for housing remains broadly unchanged, being strong in areas of high demand such as Edinburgh and Fife, and steady elsewhere. The demand for quality agricultural land continues to be good and, when selling farms, fixing closing dates for best offers is the norm rather than the exception.

After a ten-year bull run an adjustment in land prices would not be entirely surprising, but the drivers of such an adjustment are likely to be the fall in commodity prices and an increase in costs rather than as a direct consequence of the Brexit decision.

Our experience in Scotland is that, after four national polls in two years (Scottish Independence Referendum, UK General Election, Scottish Election and EU Referendum), the population now seems to take little notice of the background noise of politics and has decided to get on with the rest of their lives.

There is a limit to waiting to see the outcome of one or other political initiative before deciding where to live or whether to buy or sell.

“

The population now seems to take little notice of the background noise of politics and has decided to get on with the rest of their lives.

Brexit will ultimately affect such decisions, but, for now, its implications are so unclear that decisions are better made by focusing on the big picture certainties rather than speculative possibilities.

james.galbraith@ckdgalbraith.co.uk 01896 662 836

www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial | Commercial Matters Autumn/Winter 2016 | Page 7

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DEAL round-up Ascensos to open second facility and double workforce

CKD Galbraith were instructed to assist Ascensos in their acquisition of new premises in Clydebank after the Scottish customer service firm won a significant new contract with hardware giant B&Q. The new 25,000 sq ft premises at Stirling House will be the second office for the firm, whose Motherwell headquarters CKD Galbraith helped to acquire when the business was established three years ago.

The Clydebank facility will be used to provide phone, email and web services for B&Q and sees employee numbers increase from 400 to 750 initially and up to 1,000 by next year. The new office building has been completely refurbished and became operational in October.

John Devlin, managing director of Ascensos, said: "We have established a great relationship with Kingfisher Group and we look forward to building on this and creating a world-class facility for B&Q, their customers and our team in Clydebank. Ascensos has grown quickly in the last two years and this expansion in Clydebank starts another key chapter in our success story."

Ascensos also has contracts with Karen Millen, Oasis, Argos and Scottish Power.

Richard Higgins and James Taylor of CKD Galbraith assisted with the negotiation of a new lease of Stirling House in Clydebank, which had been vacant for some time and required some delicate negotiations for the fit out works and replacement roof.

Leith office sold for £525,000 for flats Acting on behalf of a private client, CKD Galbraith has sold 6B Mill Lane in Leith to HiFive, a development company new to the city, for £525,000. The property extends to 4,360 sq ft of contemporary open plan office accom­modation over ground, mezzanine and first

Stirling House, Clydebank, will be a second office for Motherwell-based Ascensos. floors. The deal is significant for Leith as this good quality office space has struggled to find a commercial purpose.

The new owners plan to develop the property into flats – a possible sign of things to come for the area.

AMEY takes industrial unit in Dumfries An industrial unit of 1,824 sq ft in Maxwell Town, Dumfries, has been leased to AMEY, one of the UK's largest companies managing infrastructure and public services, at a rent of £10,000 pa. This is a strategic move for AMEY who have secured a service contract in the area.

welcomed new tenant WBA Architects on a five-year lease at £15.50 sq ft.

Further investment and new tenants for Tweedbank

Scottish Labour Party lease secured at Crichton House

Capital Catalyst are to make a further significant investment in the Tweedbank Industrial Estate. The new landlords have already invested around £200,000 on a major refurbishment of the site near Galashiels in the Scottish Borders. The work to upgrade four vacant units was undertaken over the past 12 months by local contractors Murray and Burrell. The additional investment will upgrade Block 1, an industrial unit with ancillary office space, which extends to 14,732 sq ft.

On behalf of the landlord of Crichton House, Holyrood, Edinburgh, CKD Galbraith led the lease negotiation to secure the continued occupation of the Scottish Labour Party in a third floor suite (c700 sq ft) until 2021, following the expiration of their sub-lease.

First capital office for Avenue Scotland CKD Galbraith has let an office unit of 450 sq ft at Thain House, 226 Queensferry Road, Edinburgh, to Avenue Scotland, one of Scotland's largest independent recruitment agencies, for their first office outside Fife.

The new office in the capital will be used as a base for care staff servicing Edinburgh clients.

Crichton House, Edinburgh.

Mill Lane, Leith.

Double deal at London House

The top floor of the property, which extends to 1,640 sq ft, has panoramic views to the south of the city and

Two new leases have been signed with TMS Motorspares for a 4,327 sq ft unit, while Everwarm are taking 5,777 sq ft, and in early September missives were signed for Block 5, an 11,554 sq ft unit, which has been leased in a confidential deal to a undisclosed party.

Only two units now remain, of 3,645 sq ft to 14,732 sq ft.

CKD Galbraith has secured two new tenants at London House, 20-22 East London Street, Edinburgh, on behalf of a private landlord.

The entire first floor of 3,647 sq ft has been let to legal firm Clyde and Co following their recent merger with Scottish firm Simpson and Marwick.

CKD Galbraith, working on behalf of Capital Catalyst, has secured the expansion of Borders College at the Estate.

The college has taken a further 9,633 sq ft in addition to its initial unit of 3,836 sq ft.

Silvermills Court, Edinburgh.

CKD Galbraith's Katie Gibson said: “This further investment from Capital Catalyst is more great news for the Tweedbank Industrial Estate and for the Borders. In the past year the site has been transformed and we have been delighted with the strong level of uptake we have seen from both local and national occupiers and for the positive impact that this will have on the local economy.”

Thain House, Edinburgh.

Page 8 | Commercial Matters Autumn/Winter 2016 | www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial

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FOCUS: THE Borders

Slow line to regeneration

One year on, Katie Gibson assesses the economic impact of the new Borders Railway.

The re-opening of the Borders Railway in September 2015 was heralded as opening up the area to bring tourists in from the capital and to help locals commute to and from their Edinburgh jobs.

The new 35-mile service, which connects Edinburgh to Tweedbank, was part of the 98-mile Waverley line from Edinburgh to Carlisle which was axed in 1969. The £350m project exceeded its forecast goal of 650,000 passengers in year one by 22% just six months after opening. So the new line seems to have been a success. But is it achieving its economic regeneration goals for the towns along the route?

There’s no doubt the route has given many people a new mode of transport in a rural area of Scotland and that is to be celebrated.

However, the majority of extra passengers come from the furthest stops of Galashiels and Tweedbank, which only saves 13 minutes travelling time to Edinburgh over driving.

It also seems that many are using the Borders Railway to spend their money on shopping trips and days out in the capital, taking much-needed custom away from already failing High Streets.

This is especially noticeable in Galashiels, where currently 25% of retail units on Channel Street are vacant.

An increase in new-build homes is another major

economic regeneration goal for the railway.

Planning departments have encouraged this in their local plans, but national housebuilders have not yet been persuaded to acquire land at the end of the line around Galashiels and Tweedbank. This is due to a lack of demand for new housing in the area. The housebuilders point out that other satellite towns to Edinburgh, such as Peebles, have slow sales and lower house values than more valuable areas closer to the capital.

Greater activity is being seen in the towns and villages at the northern end of the line, such as Newtongrange and Gorebridge, but we anticipate it will take time for housebuilders to gain enough confidence to buy land for multi-unit development at the southern end of the line. It is not all negative though. Regional housebuilders are active again in villages close to Tweedbank Station such as Gattonside and Melrose. However, these developers tend to be building out their land banks rather than actively acquiring land.

“

Regional housebuilders are active again in villages close to Tweedbank Station such as Gattonside and Melrose.

The Borders Railway has undoubtedly increased the number of visitors to the area. However, it is difficult at this stage to determine its full economic impact. I believe it will have a positive effect in the long-term, but it probably needs to become more established and generate a proven “track record” (excuse the pun) before confidence in the commercial and other property sectors grows.

katie.gibson@ckdgalbraith.co.uk 0131 240 6981

www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial | Commercial Matters Autumn/Winter 2016 | Page 9

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Green shoots developing Demand for residential land is taking time to filter to rural areas, says Harry Stott.

The demand for development land in Scotland is relatively strong, if still constrained in some areas.

In the past few years most PLC housebuilders have sought opportunities in the Central Belt (in particular Edinburgh and the Lothians) and areas of significant population such as Dundee and Aberdeen, albeit demand in Aberdeen has declined in light of the turbulent oil market.

While major housebuilders will likely continue to concentrate on these central areas for the foreseeable future, their geographic interest will widen in time, but it is difficult to predict when that will be.

This is not to say that there is no development activity in more peripheral areas of Scotland. We have recently seen a number of local developers who have re-entered the market actively seeking development opportunities in rural areas, particularly in popular locations such as Dunkeld in Perthshire.

Developer interest: 3 Tay Terrace, Dunkeld.

Here, CKD Galbraith has recently sold a substantial townhouse development opportunity and put a development site for four houses under offer near Perth, which in recent years would have struggled to generate significant interest.

These are positive signs, assisted by the relative stability in the housing market at time of writing.

Regional housebuilders are also actively building again. However, they tend not to be buying sites

Period drama Kash Bhatti uncovers the challenges and delights of working with listed buildings.

Buildings are listed for their special architectural or historical character and are graded accordingly.

They are protected under the Planning (Listed Buildings and Conservation Areas) Act 1990.

Listing can include the main external features such as the walls, windows, railings and roofs and internal features that make up so much of the historic character, such as, timber panelling, staircases, fireplaces and decorative cornicing.

Listed Building Consent must be obtained before altering or removing these features.

Four years ago CKD Galbraith won an exclusive appointment to manage a portfolio of 21 townhouse properties on Charlotte Square, Edinburgh on behalf of Fordell Estates Ltd. The square was designed by Robert Adam in 1791 and, with its distinctive facades, is designated a UNESCO World Heritage site. Corran Properties coordinates all planning, design, development and commercial work on behalf of Fordell.

Fordell’s vision is to restore the commercial fortunes of these listed buildings by sensitive refurbishment in order to create first class office accommodation suitable for modern businesses.

The first phase of the regeneration comprised renovating six substantial townhouses on the south side of the square and creating new office accommodation to the rear to connect period office space to modern open plan accommodation. In addition to the sensitive restoration of the roof and external building fabric, internally the

refurbishment was extensive. New M&E systems were installed, including air conditioning, complete re-wire and new lighting. Roof and attic spaces were insulated. Extensive re-plastering, cornice repairs and decoration provided a quality finish. CAT 6 cabling, server rooms, kitchens, bike stores, re-cycling stores and showers met incoming tenants' expectations. The traditional interiors were given a modern twist with chrome ironmongery and modern lighting.

The project was demanding from the early design, consultation, planning and delivery phases. With ten townhouses complete to date and fully let, this project has changed perceptions about what is possible with listed buildings.

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in peripheral areas. They are instead building out sites that have been land banked for a number years as the demand had simply disappeared.

Notwithstanding, there are still significant pressures on the development land market. The planning process can be painfully protracted, and building and materials costs are increasing all the time, particularly with new building regulations coming into force. All this puts pressure on land prices. Additionally, the outcome of the EU Referendum may lead to a decrease in confidence in the market, as is widely predicted, and the volume of transactions could fall away.

“

There are still significant pressures on the development land market.

A Week in the Life of a...

Graduate commercial surveyor with Emma MacFadyen

I wasn’t sure what to expect from my first fulltime job in the industry after my postgraduate degree in commercial real estate from Aberdeen University.

However, all these factors do not seem to have deterred interest from developers in opportunities that come to the market. In fact, from recent discussions we have had with many developers, they are still building and looking for opportunities, but with a slightly more cautious approach.

I love the variety – no two days are the same – and I’m involved in an array of projects, working with teams from different business streams based at our offices around the country so I get to travel too.

Friendly and supportive colleagues have made the transition from university to working life much less daunting.

harry.stott@ckdgalbraith.co.uk 01786 434630

Monday is spent in Stirling updating a client report after conducting title investigations to ascertain who owns an access track to a large proposed residential development site near Edinburgh. At an internal meeting with our planners in the afternoon we discuss the different aspects of the project and the report prior to the client meeting next week.

Tuesday sees me helping to prepare a plan of a company portfolio for the Partners’ management pitch. I collate data about the company’s assets, working alongside our GIS manager to create a presentable map format.

On Wednesday morning I head to our Cupar office to discuss with a client the best approach to market their property with my line manager, Harry Stott. As a relatively large site with several different aspects we recommend marketing it as a whole rather than split into lots to simplify the sale process for the client. That afternoon I visit the property to see the issues first hand. As a complex site with the potential for development, being able to visualise the alternative uses is key. En route back to Stirling, I visit another site in Perthshire for which we are preparing a marketing report that has consent for the construction of up to six residential dwellings.

Extending listed buildings can be challenging, but often inspires delightful, purposeful and enduring designs, which add to the vitality and interest of the original building. There is clearly a need to respect the original character and significance, but good judgement and quality in both design and execution can produce results that will be appreciated now and for generations to come.

Further information can be found on thecharlottesquarecollection.com

kash.bhatti@ckdgalbraith.co.uk 0131 240 6970

The Charlotte Square renovation has given a modern twist to Adam's classical town houses.

Thursday: I enjoy catching up on paperwork and emails back in the office. This is when I pull together my thoughts from site visits and meetings and formulate a plan. The rest of the day is focused on drafting the marketing and valuation reports from this week’s site visits, with Harry’s support, which are then proof-read and bound before going to the client.

Friday morning starts with a drive up to Lochaber to inspect, measure and photograph a property for a valuation report. The early start and long drive were made worthwhile by the spectacular scenery on a rare sunny day on the west coast. It’s a great way to end the week. emma.macfadyen@ckdgalbraith.co.uk 01786 434623

www.ckdgalbraith.co.uk | Twitter: @CKDGCommercial | Commercial Matters Autumn/Winter 2016 | Page 11

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our eXpertISe l Property management l Asset management l Commercial valuation l Professional services l Investment consultancy l Sales, lettings & acquisition l Project co-ordination l Building surveying l Facilities management In addition to our specialist services, we manage in excess of £450 million of commercial property across the uK. We deal with around 750 tenants in more than 120 properties from single units to large multi-let environments such as shopping centres.

coNtactS Kash Bhatti Property management, facilities management 0131 240 6970 kash.bhatti@ckdgalbraith.co.uk colin Black Property management 0131 240 6971

colin.black@ckdgalbraith.co.uk

Martin cassels Building surveying 0131 240 6992

martin.cassels@ckdgalbraith.co.uk

Jill gayford Property management 0131 240 6987

jill.gayford@ckdgalbraith.co.uk

Katie gibson Agency (office, retail & industrial) 0131 240 6981 katie.gibson@ckdgalbraith.co.uk Jamie grant Planning 01786 434638

jamie.grant@ckdgalbraith.co.uk

pamela gray Asset management, professional & valuation, property management 0131 240 6963 pamela.gray@ckdgalbraith.co.uk richard Higgins Agency (investment, office, retail & industrial), asset management, professional & valuation 01786 434625 richard.higgins@ckdgalbraith.co.uk calum Innes Agency (development & commercial), planning, project co-ordination, professional & valuation 01738 456075 calum.innes@ckdgalbraith.co.uk pam over Asset management, project development & co-ordination, property management 0131 240 6965 pam.over@ckdgalbraith.co.uk peter Scott aiton Building surveying 0131 240 6967

peter.scottaiton@ckdgalbraith.co.uk

Harry Stott Agency (development & commercial), planning, professional & valuation 01786 434630 harry.stott@ckdgalbraith.co.uk James taylor Building surveying 01786 434610 Mark thom Professional & valuation 0131 240 6997

james.taylor@ckdgalbraith.co.uk

mark.thom@ckdgalbraith.co.uk

offices across Scotland | Sales & lettings | Farm & estate Sales & acquisitions | commercial | rural | energy Forestry | property & land Management | Sporting | agricultural loans | Subsidy trading & advice

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