Page 1

OCTOBER TO DECEMBER 2015

REACHING NEW HEIGHTS WHY GLOBAL INVESTORS ARE TARGETING EDINBURGH

ALSO INSIDE ISSUE 54 » NEW ARTS HUB » 10 QUESTIONS FOR ASCENDANT CORPORATE FINANCE » PAOLOZZI MOSAICS ARRIVE IN EDINBURGH » BIOQUARTER UPDATE » CRUISE TOURISM BOOM


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IN THIS ISSUE 10

07

16 04 SNAPSHOTS

The latest news from around the city

07 NEW ARRIVALS

Global investment bank BTIG arrives in Edinburgh

08 10 QUESTIONS FOR…

Stuart McKnight, MD of Ascendant Corporate Finance

10 (cover story)

REACHING NEW HEIGHTS:

Why global investors are targeting Edinburgh

14 ROUND TABLE

What makes Edinburgh an attractive proposition for developers?

16 MAKING IT HAPPEN

How the City of Edinburgh Council is driving

new development

17 ADDED EXTRAS

 Edinburgh’s growing appeal as a cruise ship destination

18 INNOVATION FOCUS

 ushing the boundaries of 3D printing to shape P a new world

THE FIRST WORD

H

ello and welcome to the latest issue of Invest Edinburgh. The past few months have been exciting ones for Edinburgh, with a number of landmark developments reaching significant milestones and several others securing planning consent. 2016 will see developers break ground on a number of strategically important projects. I’d encourage anyone interested in learning more about investment opportunities in the city to make contact with the Council’s Head of Investor Support, Elaine Ballantyne, at elaine.ballantyne@edinburgh.gov.uk. Our cover feature this issue looks at the rapid growth the city is experiencing, with tourism, academia and the technology sector all fuelling demand. The opportunities this growth is creating for developers is rapidly establishing Edinburgh as a global hot-spot for property investors. The factors driving the city’s growth are discussed in Roundtable. This issue’s 10 Questions is with Stuart McKnight, managing director of Ascendant Corporate Finance. Ascendant has recently expanded into Edinburgh and is quickly establishing itself as a highly active player in the city’s dynamic business finance marketplace. Capital Focus looks at the conversion of the historic former rubber factory Castle Mill Works – the birthplace of the Wellington boot – into a new home for Edinburgh Printmakers. In addition to providing affordable studio and exhibition space for artists, the refurbished building will feature a gallery, café-bar and crafts shop open to the public, helping enliven the Fountainbridge neighbourhood. 1 to Watch looks at the fast-growing fund manager Anderson Strathern Asset Management, while New Arrivals welcomes investment bank BTIG to the city. Meanwhile, the QikServe ‘waiter in your pocket’ app is the focus of Made in Edinburgh. New chief executive Andrew Kerr discusses how the City of Edinburgh Council is driving growth in Making it Happen, looking at initiatives such as the £1bn City Deal. Our regular Added Extras column looks at the rapid growth of Edinburgh’s cruise industry. Finally, we look at how the city’s entrepreneurs and researchers are embracing the possibilities offered by 3D printing. Thank you for reading,

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COUNCILLOR FRANK ROSS, Convenor of the Economy Committee The City of Edinburgh Council editor@investedinburgh.com

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To find out more about how we can help you, please contact the Investor Support team at invest@edinburgh.gov.uk or on +44 (0)131 529 6600.

A £10m renovation of a derelict rubber factory will turn one of the city’s most historically significant industrial buildings into a world-class arts venue and creative industries hub.

CASTLE MILL WORKS TRANSFORMATION Plans have been unveiled for the conversion of Castle Mill Works in Fountainbridge into a new home for Edinburgh Printmakers, a leading visual arts charity established in 1967 as a specialist centre for fine art printmaking. The project is being supported by the City of Edinburgh Council, which is leasing the building to Edinburgh Printmakers, and by a range of funding partners, including Creative Scotland and the Heritage Lottery Fund. Subject to securing planning consent, construction is set to begin late next year, with the new arts venue launching in autumn 2018. A newly-created entranceway and viewing window on Dundee Street will draw visitors and passers-by into the main gallery, where a year-round programme of exhibitions and events will give people the opportunity to experience world-class contemporary art. The first floor of the building will deliver a large open-access printmaking studio equipped for screen-printing, lithography, etching and relief printing,

www.investinedinburgh.com

along with a digital studio with 3D printing facilities. The refurbished building will also house the charity’s extensive print archive, a learning space, a delicatessen and wine bar, and a shop selling original artworks, crafts and designer wares. Other features will include a project gallery, staff offices, storage space and an artist flat to facilitate international working and residencies. A new extension to the southwest of the existing building will house a business incubator providing creative industry spaces, studios and offices for creative entrepreneurs, as well as creating a new internal courtyard space capable of hosting art exhibitions, live performances and festival shows. “We are creating an art hub centred on printmaking and production,” explained studio director Alastair Clark. “Printmaking is a vibrant and versatile process that attracts all kinds of creative people, including designers, people who work in photography and painters – printmaking can

The derelict former factory will be restored.

offer something to artists of all disciplines, and that’s why it’s so in demand.” Dating back to 1856, the Castle Mill Works building was at one time the largest factory in Edinburgh. Formerly home to the North British Rubber Company, the creator of now-ubiquitous products including the Wellington boot and the traffic cone, it has lain empty since 1973. The restoration will reveal some of the original features, including the brick façade and the internal column heads. A series of temporary outdoor art exhibitions will animate the building until it reopens. “We have more demand now than ever before for high

AMERICAN FINANCIAL SERVICES SOFTWARE SUPPLIER FIS HAS OPENED AN OFFICE ON ROSE STREET, IN THE CITY CENTRE.

quality printmaking facilities and training support,” said Sarah Price, chief executive of Edinburgh Printmakers. “This investment will enable us to extend printmaking facilities for artists and creative practitioners. It will offer new facilities such as 3D printing and will work with creative enterprises to deliver a broader range of production facilities to meet the needs of Edinburgh’s creative practitioners. This project will create a major new arts resource for the city.”

edinburghprintmakers. co.uk

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<SNAPSHOTS

1 TO WATCH

ANDERSON STRATHERN ASSET MANAGEMENT

WHAT DO THEY DO? Anderson Strathern Asset Management (ASAM) is a boutique fund manager and independent financial adviser. Based in Edinburgh, it offers whole-of-market advice to help clients select the most appropriate investment products. ASAM’s customer base includes entrepreneurs and professionals as well as ‘old’ land and estate-based wealth and agricultural clients. It acts for trusts, companies and charities as well as high net worth individuals. Most of ASAM’s clients receive a combination of financial planning and investment management services. WHY ARE THEY WORTH WATCHING? The last year has been non-stop for

ASAM with significant senior hires including the appointment of a new finance director and Harry Morgan (formerly of Adam & Co) joining as chief investment officer. Assets under management at ASAM have risen by 27% in the past three years. This has been accompanied by operational improvements and an enhanced focus on setting rigorous client objectives combined with sound financial strategy and investment delivery. As an independent company, ASAM is able to react quickly to markets and trends. This agility means the business is well-placed to work in partnership with other legal firms, accountants, financial advisers and stockbrokers in delivering shared client objectives.

WHERE HAVE THEY COME FROM? ASAM’s roots lie in Anderson Strathern, one of the leading names in the Scottish legal sector. For decades, it has offered financial advice and investment management services through its private client department. In 2011, Anderson Strathern Asset Management was launched as an independent company and has since grown quickly, building up a diverse client base. It now has over 30 staff and works with clients across the UK. WHAT DOES IT MEAN FOR THE AREA? ASAM is on course to double in size over the next five years, creating jobs in its financial planning and investment teams. > Find out more: www.andersonstrathernam.co.uk

INNOVATIONS ATTRACT INVESTORS Six of Edinburgh’s most promising young companies are raising close to £5m of growth capital. Fashion shopping app developer Mallzee has secured £2.5m of investment from the Royal Mail, the Scottish Investment Bank, Par Equity and four leading software entrepreneurs. The app enables users to browse over two million items of apparel from more than 100 brands and receive recommendations tailored to their fashion tastes. Mallzee (founded 2013) will use the funding to further improve the app and offer data analytics to retailers. Hermes Apps (founded 2014) is raising £500,000 of capital to boost sales and marketing activity for its product ShareOurApp, a solution that enables apps to be instantly shared between devices without the need to visit an app store. The product has already secured orders from a number of major sports teams and leagues. Intelligent Point of Sale

Mara Seaweed: targeting new markets. (IPOS) – the developer of intelligentpos, a point of sale app for the iPad – has secured £500,000 of equity investment from the 24Haymarket angel syndicate, along with £50,000 of debt funding from the East of Scotland Investment Fund. Founded in 2013, IPOS now has 16 employees and close to 750 clients. The app provides a portable and cost effective alternative to traditional cash registers. The funding will be used to franchise the business model overseas and recruit additional staff. Mara Seaweed has launched a crowdfunding campaign

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via the CrowdCube platform. The company, which produces condiments made from seaweed hand-harvested from the North Sea, is seeking £500,000 in return for a 13.7% stake. The capital will be used to expand Mara’s production facilities, increase sales and marketing activity, and break into overseas markets. The runner-up in the ‘best food producer’ category in this year’s BBC’s Food & Farming Awards, Mara (founded 2011) recently concluded a UK-wide distribution deal with Marks & Spencer. The angel syndicate Equity

Gap, the Scottish Investment Bank and Old College Capital have invested a total of £415,000 in golf technology start-up Shot Scope. Founded in 2013, Shot Scope has developed a smart wristband that automatically tracks the performance of golfers, compiling detailed statistics that the wearer can review afterwards. Shot Scope plans to use the funding to begin manufacture of the wristbands for launch at the PGA Merchandise Show in Florida next January. Finally, the higher education software provider GeckoLabs has received £250,000 of funding from venture capital firm AngelLab and the London Co-Investment Fund, enabling it to open a new office in London and grow its product line.

BIOQUARTER IS THE BIG PHARMA PRESCRIPTION The Edinburgh BioQuarter brings together world-class clinical, scientific, teaching and commercial activities on a single campus. The site co-locates the Royal Infirmary of Edinburgh, the school of medicine of the University of Edinburgh and a range of biomedical research facilities, among them the Scottish Centre for Regenerative Medicine and Nine, a business incubator that provides purpose-built office and laboratory space for researchers. Construction is now well underway on the 30,000m2 Royal Hospital for Sick Children, which opens in 2017, while the University of Edinburgh has announced plans to develop a new £10.7m Centre for Tissue Repair. This concentration of talent makes the BioQuarter a world-class destination for translational medicine, attracting investors such as Pfizer, which has injected £33m into a research project that utilises the rich resource of anonymous patient data held by Scotland’s National Health Service. Other pharma giants with ongoing research partnerships at the BioQuarter include Johnson & Johnson and GlaxoSmithKline.

In recent years, the city’s community of angel investors has helped nurture numerous biomedical start-ups offering innovative healthcare solutions. This August, synthetic biology company Synpromics received £2.1m from specialist private equity firm Calculus Capital to help it bring to market technology capable of helping cure genetic diseases such as haemophilia and hereditary blindness. Meanwhile, a number of the most innovative researchers based at the BioQuarter have been awarded funding to develop their ideas, among them Dr Ramya Bhatia, who has created a new test for HPV infection, and Daniel Good, who has developed a device to improve diagnosis of prostate cancer. With high value working relationships with Big Pharma, a thriving ecosystem of innovative start-ups and major investment in new facilities – all underpinned by world-leading scientific expertise – the BioQuarter is growing in stature as a global hub for biomedical research. > Find out more: www.bioquarter.com

Airline Flybe has begun operating up to seven flights a day between Edinburgh Airport and London City Airport, while Delta Virgin has debuted new daily flights to New York. The PARAGONE project – a collaboration of 17 scientific bodies created to develop vaccines for parasitic diseases affecting animals in the food chain, led by the Edinburgh-based Moredun Research Unit – has been awarded £6.3m of research funding by the European Commission. Edinburgh-based software company Skyscanner has entered an agreement to supply a white label travel search engine to Microsoft for its MSN Travel portal. A ‘makerspace’ for entrepreneurs in the textiles industry has opened in the Ocean Terminal shopping centre. The communal working space will give users access to equipment including sewing machines, and CAD embroiderers. Edible Edinburgh has launched a Sustainable Food City Charter that aims to improve residents’ diets, boost local food production and reduce food waste. Businesses are invited to sign up to the charter at www.edible-edinburgh.org Edinburgh-based broadband provider TenTel aims to win 50,000 new customers over the next year after securing £170,000 of growth funding from Scottish Enterprise.

> Find out more: www.mallzee.com www.shareourapp.com www.i-pos.co.uk www.maraseaweed.com www.shotscope.com www.geckolabs.co.uk

DUTCH HOTELIER THE CARLTON HOTEL COLLECTION IS TO INVEST £15M IN DEVELOPING A 98 BEDROOM BOUTIQUE HOTEL NEXT TO EDINBURGH WAVERLEY RAIL STATION.

The 48km Borders Railway has been formally opened by HM Queen Elizabeth II, linking Edinburgh and the Scottish Borders.

Edinburgh’s ultrafast fibre broadband network is to be expanded as part of a new £5.6m Gigabit City project with CityFibre.

www.investinedinburgh.com

FASHION RETAILER PEACOCKS HAS OPENED AN OUTLET IN THE WESTSIDE PLAZA.

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<SNAPSHOTS

MADE in EDINBURGH

QIKSERVE, THE WAITER IN YOUR POCKET PAOLOZZI MOSAICS MAKE JOURNEY HOME

It started with an epiphany, one born out of the creeping desperation that comes from vainly trying to control two young children in a busy café. For Daniel Rodgers, founder and chief executive of Edinburgh-based QikServe, using technology to avoid spending time waiting to be served seemed like common sense. “The average café customer has more computing power in their pocket than they know what to do with,” explains Daniel. “Why not use a smartphone to place orders and pay bills, saving time and freeing up waiting staff to improve service and add value to a business?” QikServe was born, the new ‘waiter in your pocket’ smartphone app that is rapidly revolutionising the service industry in cafés , restaurants and hotels across Europe and the United States. With the number of global smartphone users expected to reach 3.5bn by 2019, self-service mobile app adoption is a fast-growing trend. QikServe’s self service app lets diners order and pay for food and drinks straight from their smartphone. Customer data is captured automatically, providing a powerful

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piece of intelligence for targeted marketing campaigning. As well as being convenient, QikServe also enables customers to share their experience via built-in social media tools. While developing his concept, Daniel was introduced to Ronnie Forbes, cofounder of QikServe and an established smartphone entrepreneur. Ronnie successfully developed Mobiqa, the mobile ticketing platform behind today’s

airport boarding cards, acquired by NCR in 2010. Thanks to a partnership with Micros, one of the world’s largest suppliers of point-of-sale systems to the global hospitality and catering industry, QikServe can now be fully integrated into existing ordering and payment systems. “The result is an enabling technology for today’s connected customer,” adds Daniel. “We have exciting plans for the next 12 to 18 months. It’s a huge opportunity to expand our footprint, especially in the United States where we hope to be operating in 1,000 sites by next year.” With an expanding team of developers, designers, advisors, and sales marketing, QikServe now employs 16 people. “Edinburgh is an ideal location for a growing tech business,” concludes Daniel. “The city produces high calibre developers and based in CodeBase we enjoy access to wider business support. There’s simply no better place to be.” > Find out more: www.qikserve.com

BUSINESS PROCESS OUTSOURCING FIRM CAPITA HAS FULLY LET THE 2,500M2 145 MORRISON STREET OFFICE DEVELOPMENT IN EDINBURGH’S CENTRAL BUSINESS DISTRICT.

The future of a collection of iconic mosaics by the artist Sir Eduardo Paolozzi CBE has been safeguarded after an agreement was struck to relocate them from the London Underground to his hometown of Edinburgh. The mosaics were originally installed at Tottenham Court Road tube station in 1984, quickly becoming popular amongst commuters for their colourful, frenetic imagery. A major renovation of the station as part of the Crossrail project necessitated the removal of several of the mosaics earlier this year. Transport for London has now agreed to gift the dismantled mosaics to the University of Edinburgh’s Art Collection, which already holds around 150 works by Sir Eduardo. The mosaics will be restored and reassembled by a team of

researchers, students and conservators for public display. “I am delighted that the University is able to provide a home for this work,” said Neil Lebeter, curator of the University’s Art Collection. “We expect the murals to become an important part of the campus – a major draw for students and wider public. The possibilities for creative engagement through this project are hugely exciting.” Born in Leith in 1924, Sir Eduardo briefly studied at the Edinburgh College of Art (now part of the University of Edinburgh) before relocating to London in the 1940s. Widely regarded as one of the fathers of pop art and a revivalist of surrealism, his other memorable works include the sculpture A Maximis Ad Minima and the collage I was a Rich Man’s Plaything. Prior

to his death in 2005, he gifted many of his works and materials to the National Galleries of Scotland; they are now on permanent public display at the Scottish National Gallery of Modern Art in Edinburgh. “Eduardo Paolozzi was one of the most important British artists of the late 20th century, whose art captured the breadth of the modern world,” said Toby Treves of the Paolozzi Foundation. “The work with Edinburgh will provide a fitting home [and] further promote public appreciation of the fine arts and the extraordinary contribution of Eduardo Paolozzi.” > Find out more: www.ed.ac.uk www.eduardo-paolozzi.com

NEW ARRIVALS BTIG WHAT DO THEY DO? Boutique financial services firm BTIG has expanded into Edinburgh, with an office in St Andrew Square. Working on behalf of hedge funds, mutual funds and other clients, BTIG provides a suite of services including trading, brokerage, investment banking, and research and analytics. Founded in New York in 2005, the firm now employs close to 500 staff across North America, Europe, and Asia-Pacific.

following an opening in London in 2008, reflecting the firm’s ambitious plans to grow its European business. The office will be headed by Stephen Harley, BTIG’s managing director of institutional equities. “Expanding our global footprint by leveraging local expertise in new territories worldwide allows us to offer products and services to a larger global audience,” said BTIG president Matt Cyzer.

WHY THE MOVE? The new office marks BTIG’s 14th location worldwide and its second in Europe

WHY EDINBURGH? The choice of Edinburgh reflects the city’s status as a European

www.investinedinburgh.com

GLENDOLA LEISURE HAS ANNOUNCED PLANS TO CONVERT A FORMER CHURCH ON ROSE STREET INTO A 22 BEDROOM HOTEL AND RESTAURANT.

financial services hub, with numerous major banks and fund managers headquartered in the city. Existing trading and brokerage firms active in Edinburgh include RIA and Stocktrade. “Building upon our strong UK client base, the office will offer the ability to develop stronger relationships in the region,” said Gary Heyes, chief executive of BTIG. > Find out more: www.btig.com

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<10QUESTIONS IE> Why have you chosen to establish a presence in Edinburgh? SM> There is real market opportunity now and we know that we can deliver for businesses here. Edinburgh’s story has been hidden for too long. I was recently informed that the University of Edinburgh produces more software engineers every year than either the Massachusetts Institute of Technology or Stanford. This talent, supported by the efforts of the local investment community, has driven a great deal of entrepreneurial activity. EIE, the tech investment showcase for Scotland, has also grown to be one of the premier events of its kind in the UK, and if you compare the city’s cost base with Shoreditch in London, Edinburgh is more competitive.

“THE LAST COUPLE OF YEARS HAVE SEEN A CHANGE IN AMBITION HERE. PEOPLE NOW BELIEVE SCOTTISH COMPANIES CAN ACHIEVE THINGS ON THE INTERNATIONAL STAGE.”

Stuart McKnight

Ascendant aims to complete the funding escalator for city’s high growth companies. Caption in here

Managing Director, Ascendant Corporate Finance IE> What does Ascendant Corporate Finance do? SM> Essentially we do two things – we get money into companies and get money out of them for their shareholders. Our typical clients are technology or life science businesses looking to finance growth or trying to find a buyer for their companies. From our base in London, and now in Edinburgh too, we can prepare and introduce these companies to professional and institutional venture and private equity investors throughout the world. One of our strengths is the links we have with well over 1,000 corporate investors who can, in some cases, provide not just finance but strategic partnerships for our clients. On exits, or a sale of the company, Ascendant’s experience allows

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us to identify and secure buyers from a global base, whilst maximising the value of the business. Scotland has one of the most active angel investment communities in the UK, which has been a great catalyst to entrepreneurial activity. However, as the companies they have backed grow, their appetite for capital frequently extends beyond the capacity of those angel syndicates. It is at this point that Ascendant can help – unlocking venture capital (VC) funding from £2m upwards, and exits or mergers and acquisitions for companies worth more than £5m. IE> How does the company stand out from your competition? SM> When companies choose their advisers

they typically look to the advisers’ sector expertise and transactional experience. Ascendant is the only corporate finance house that publishes detailed research on investment trends in the venture capital market and its team are frequent speakers at events on this topic. Our expertise and access to venture and private equity investors is widely recognised. This makes a critical difference to the success of our clients’ financing rounds. In addition, the clear focus we have in technology and life sciences allows us to quickly understand the value in our clients’ business and to communicate it to investors and potential purchasers. Individuals on Ascendant’s team have over 25 years’ experience and know how to get the right outcome for our clients.

AMERICAN FANTASY SPORTS FIRM FANDUEL HAS PRE-LET 5,400m2 AT THE NEW QUARTERMILE 4 OFFICE DEVELOPMENT FOR ITS UK HEADQUARTERS AND SOFTWARE ENGINEERING OFFICES.

IE> How long has Edinburgh’s technology sector been a focus of your attention? SM> We have tracked every UK venture capital deal in the technology space since 1997. We know Scotland is a hive of activity, second only to London for the number of companies being financed. Our impression is that the last couple of years have seen a step change in ambition here. People now believe Scottish companies can achieve things on the international stage, and there is an acceptance that more capital is needed to help make that happen more often. IE> Has the pipeline of potential deals changed in that time? SM> Over the last five years Edinburgh has become a real hive of activity in both the software and life sciences sectors. EIE/ Infomatics, CodeBase, the BioQuarter and others have all played a part in encouraging start-ups to flourish. Capital has been the main constraint and we hope to change that for companies in both sectors. It isn’t entirely coincidental that we are arriving in Edinburgh just as FanDuel signs the single biggest venture deal in the UK since we began tracking in 1997. It may be a little while before we see something quite this big (£175m!) again, but it does prove that there are great Scottish

www.investinedinburgh.com

technology companies and investors who want to back them.

and helping us promote our presence in the city.

IE> Your team profile is for very experienced individuals to work with clients. Was it easy to get the team you wanted in place, in Edinburgh? SM> We have spent a great deal of time in Scotland over the last ten years and of course knew some Scots we wanted to work with us. Getting staff with the requisite skills, knowledge and experience is always challenging but we feel we have the right people for now. In the longer term, we will look to expand our team in Scotland with individuals who have a fresh perspective, their own network of contacts, and critically, first-class corporate finance experience. We are confident that the right people are available, but there are many good people in London, who are originally from Scotland and relish the right chance to move back, or those who would simply like the lifestyle offered in Edinburgh.

IE> What advice do you offer to companies considering an investment round? SM> If you are looking to do a series A round or more, there are a number of things you need to demonstrate. You need to ensure you are solving a real problem for customers; you need to have proven traction with customers; your addressable market needs to be >£100m; you must have a clear competitive advantage; you must have a ‘quality’ team in place; and perhaps most important, you MUST have real ambition and aspiration to be a market leader. Finally companies looking for finance (and their current investors) need to recognise it takes many months to get to the finish line on a financing or sale – so give yourself time to get the deal done.

IE> How do you perceive the technology ecosystem in the city compared, say, to London? SM> London is unique, and the delivery and value of tech there is extraordinary. But just because it’s from within the M25, it doesn’t mean the technology there is better quality. We sense the momentum here in Edinburgh, and see the entrepreneurial activity. The cost of engineers and people in general are also major issues in London – Edinburgh is a lot less expensive than Shoreditch! IE> What are your goals for the new office? SM> The city has excellent connections, and for us part of the appeal is the number of high growth and mature companies here, not just the excellent start-up community. We want to be the first choice for those companies looking to raise capital or sell their business and the Edinburgh office will cover all areas of activity; from venture capital, through to private equity and also deals to allow a change of ownership without requiring a full sale of the business. IE> What support have you had while you’ve been exploring the option of establishing a presence in Edinburgh? SM> I need to compliment the team who provide investor support at the Council. From the start, they have recognised what we are aiming to do and they have been very helpful in offering a ‘soft landing’ space

RECRUITMENT AGENCY THE RESOURCING GROUP HAS OPENED AN OFFICE ON SEMPLE STREET IN THE CITY’S CENTRAL BUSINESS DISTRICT.

Stuart McKnight, managing director Stuart McKnight founded Ascendant in 2003. He holds an engineering degree from the University of Strathclyde and an MBA from Manchester Business School. Over the course of a career that has spanned firms such as Hill Samuel, Nomura and Regent he has cultivated expertise in corporate fund raising, mergers and acquisitions, and valuations.

www.ascendant.co.uk

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<FEATURE

CITY ECONOMY MARKS MILESTONES FOR GROWTH For global property investors looking for a proven, liquid and transparent market, Edinburgh offers an elusive combination of robustness and dynamism.

2014

was a recordbreaking year for the city. Edinburgh Airport, already the UK’s sixth busiest, recorded 10 million passengers for the first time; Port Hamilton, the headquarters of financial services giant Scottish Widows, changed hands for an unprecedented £105m; and the Edinburgh Festival Fringe sold over two million tickets for the first time. With the city reaching a new zenith, global investor interest is steadily rising. Real estate agency JLL reported interest from a number of new international markets when handling the sale of Port Hamilton, while overseas buyers accounted for 13% of all residential property sales in Edinburgh in the first quarter of the year. While Edinburgh’s status as the home of the world’s largest arts festival ensures an enviable international profile, the city has many other strings to its cultural bow. The University of Edinburgh, ranked among the world’s top 20 by QS World University Rankings, is one of four universities within the city that collectively welcome more than 40,000 undergraduate students each year. Heriot-Watt is a global leader in technological fields ranging from oil extraction to brewing; Queen Margaret University is recognised internationally for its expertise in the area of health and nutrition and Edinburgh Napier University alone attracts 5,000 international students from more than 100 countries. Several developments are underway across the city to provide accommodation for this substantial student population. The University of Edinburgh is also an active investor and represents the single

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largest property developer active in the city at present, with over £1.4bn of capital spending programmed over the next decade. Through Old College Capital, its in-house venture capital fund, it also invests directly in a number of start-ups and spinouts. It recently joined Google and a number of other backers in subscribing to the recent venture funding round by fantasy sports gazelle, FanDuel, which set a Scottish record. The firm has its technology base in Edinburgh. FanDuel is one of a number of thriving technology and software businesses making Edinburgh a key international technology hub. Its success, and that of Skyscanner and others, has been important for the city’s property market. Major lettings to tech companies in 2014 included videogame developer Rockstar North taking 7,000m2 on Holyrood Road; pointof-sale software specialist Zonal letting 1,900m2 at Tanfield; and CodeBase, Europe’s largest technology incubator, taking an additional 2,500m2 at Argyll House.

WITH THE CITY REACHING A NEW ZENITH, GLOBAL INVESTOR INTEREST IS STEADILY RISING.

AMERICAN FOOTWEAR RETAILER SKECHERS HAS UNVEILED PLANS FOR AN OUTLET ON PRINCES STREET, EDINBURGH’S PRIMARY SHOPPING STREET.

www.investinedinburgh.com

NEWMAKE IS TO CREATE A £1.5M MICRO-DISTILLERY AND VISITOR CENTRE NEXT TO HOLYROOD PARK IN EDINBURGH’S OLD TOWN.

| OCTOBER TO DECEMBER 2015 | INVEST EDINBURGH 11


<FEATURE <FEATURE MARKET IS DEMAND-DRIVEN than 96,000m2 of retail, hotel and leisure Demand is sustained across other sectors space, along with hundreds of new homes. of the city economy as well. The financial Construction will begin in spring 2016. services sector continues to be a key source of occupier demand, with Sainsbury’s YEAR-ROUND ASSET Bank taking 7,900m2 for its headquarters Tourism is a year-round asset for the retail and leisure sectors and new routes into at Edinburgh Park in 2014 and Standard Edinburgh Airport include direct flights from Life Investments pre-letting 10,000m2 of Abu Dhabi, Chicago, Doha, Istanbul, New space within the South St Andrew Square York, and Toronto. development earlier this year, as part of a The Airport is on track for another record global expansion. year in 2015, with over a million passengers According to recent data from the recorded each month in June -September. Registers of Scotland, Edinburgh saw Helping boost international passenger commercial property sales increase in numbers this year is an increase in services value to £417m in the final quarter of 2014, to European centres including up from £224m in the previous Amsterdam, Barcelona, Berlin, quarter. 2014 as a whole saw Dublin, Madrid, Milan, Edinburgh’s strongest Nice, Paris and Rome. office take-up for a Reflecting this activity, decade, with figures the airport is currently published by JLL THE SCALE OF ACTIVITY undergoing a £150m showing that MIGHT SURPRISE MANY, five-year expansion 83,000m2 of office programme. floor space was AS INVESTORS CONSIDER Business leased or bought, up THE POTENTIAL RETURNS tourism is another 13% on 2013. Prime factor supporting office rents in the OF INVESTING BEYOND Edinburgh’s year-round city centre averaged LONDON. revenue potential for the £320/m2. hotel sector. Since April 2015, Convention Edinburgh, SPECULATIVE DEVELOPMENT alongside its members, has It is hardly surprising that the confirmed 34 conferences, which will city is also seeing significant speculative attract almost 13,000 delegates to the development, with substantial pre-letting city between 2015 and 2021, generating activity demonstrating increasing confidence. an economic benefit of more than £23m. However, the scale of activity might surprise Among the major upcoming events is many, as investors consider the potential Fintech 2015, a financial technology returns of investing beyond London. Last summit taking place in Our Dynamic Earth October, global property adviser CBRE named on 8 October. Edinburgh as one of five mid-sized European The latest available data – from STR Global cities offering the best potential returns for for August 2015 – shows that 91.9% of hotel property investors. rooms in Edinburgh were occupied that Work commenced on three major month, with an average daily rate of £135.26, speculative office schemes last year: among the highest in Europe. The buoyant • 3-8 St Andrew Square, where the previsitor economy is driving continued interest letting of 10,000m2 to Standard Life from the hotel industry, with new brands Investments marked the largest deal of its recently announcing plans to open in the kind in over a decade city including the Carlton Hotel Collection, • Quartermile 4, next to the main campus Courtyard by Marriott, Dhiafatina Hotels, of the University of Edinburgh, where over Leonardo Hotels, Rosewood, Urban Villa and 5,000m2 has been pre-let to FanDuel Vastint Hospitality. • The Haymarket Edinburgh, which offers Specific opportunities within the city for office, hotel and retail space available for hotel developers are showcased in a recently let from 2017. updated Edinburgh Hotel Prospectus, available from the iStore and Play Store SET TO COMMENCE (EdinHotelProsp2015). A number of other developments have Fed by the strength and depth of its diverse begun this year, or are set to commence economic sectors, a thriving year-round within the next few months (see opposite). tourism economy and an international profile These include the £850m regeneration of as a cultural centre, Edinburgh’s attraction as a the St James Quarter by TH Real Estate. This haven for commercial property investment is is one of the largest speculative property easy to understand. developments in the UK, and will deliver more

12 INVEST EDINBURGH | OCTOBER TO DECEMBER 2015 |

CITY DEAL Recognising the importance of Edinburgh and its surrounding region to the national economy, a proposal for an Edinburgh and South East Scotland City Region Deal is currently being submitted to the UK and Scottish Governments, which outlines an ambition to accelerate the region’s growth. The Deal would give the city and its regional partners the powers and resources needed to undertake strategic investments in enabling infrastructure, as well as to develop skills and innovation programmes to complement these. The ambition is to drive forward up to £1bn of public sector investment, which could leverage a further £3.2bn from the private sector, and unlock a number of major developments. >F  ind out more: www.acceleratinggrowth.org.uk INVESTOR SUPPORT SERVICE International inward investors looking to locate in Edinburgh can benefit from the ‘soft landing’ services offered by the City of Edinburgh Council’s Investor Support service. New businesses can access incubation space while they search for permanent accommodation. Other local knowledge advisory services provide: • Practical advice on relocation for employees • Support on setting-up a new business • Assistance in searching for office space • Market intelligence • Recruitment assistance • Signposting grants and finance • Access to networking opportunities.

DEVELOPMENT HIGHLIGHTS More than £300m was invested in Edinburgh’s office market in 2014, with an average yield of 5.5%. This year, new developments include:

The Haymarket Edinburgh, where Interserve has begun work on a 60,500m2 mixed-use development next door to Haymarket rail station and tram interchange. www.thehaymarketedinburgh.com Capital Square, which will provide 11,400m2 of grade ‘A’ office space over eight storeys, with floor plates ranging from 1,000m2 to 1,600m2. www.hermes-investment.com

Placemaking is at the heart of the India Quay development at Fountainbridge, with the 64,000m2 mixed use development including 400 apartments for rental, retail, cafes, hotel, offices and an arts centre. www.india-quay.co.uk

New Waverley, which is providing 16,500m2 of grade ‘A’ office space, along with 400 hotel bedrooms, 28 shops and 145 homes. www.newwaverley.com

The International Business Gateway, adjacent to Edinburgh Airport, will see offices, hotels, and residential in phase one, along with ancillary restaurant, leisure and retail uses. www.scotlandsglobalhub.com

HOTEL OPPORTUNITIES Ocean Point. This waterfront site sits next to Ocean Terminal, a vibrant retail and leisure development, which attracts 400,000 visitors each month; the UK’s top rated tourist attraction, the Royal Yacht Britannia; as well as Victoria Quay, Scotland’s largest government building. It could accommodate a 250 bedroom hotel. www.investinedinburgh.com/open-for-business/find-development-opportunities/ocean-point-hotel

investinedinburgh.com /open-for-business/ find-development-opportunities/

DOWNLOAD ‘EDINHOTELPROSP2015’ FROM THE APP STORE OR PLAY STORE.

Investor Support can also link new companies in with Scottish Development International, Scottish Enterprise, the Edinburgh Chamber of Commerce and all relevant Council service areas.

+44(0)131 529 6600 invest@edinburgh.gov.uk www.investinedinburgh.com

PRETTY GREEN, THE FASHION LABEL FOUNDED BY MUSICIAN LIAM GALLAGHER, IS TO OPEN AN OUTLET ON FREDERICK STREET, IN THE CITY CENTRE.

Pentland Studios has been established to build a world-class film studio complex at Straiton on the outskirts of Edinburgh. To service the complex, a 180 bedroom hotel development is available to pre-let or purchase on a turnkey basis. /hotel-pentland-studio

www.investinedinburgh.com

Edinburgh BioQuarter. This £600m joint venture offers specialist office and laboratory accommodation for academic, commercial and healthcare activity. An opportunity exists for an internationally branded, four-star, 120 bedroom hotel. /edinburgh-bioquarter-hotel

CANADIAN IT SERVICES PROVIDER CGI HAS ANNOUNCED A PLAN TO CREATE 200 ADDITIONAL JOBS IN EDINBURGH.

| OCTOBER TO DECEMBER 2015 | INVEST EDINBURGH 13


<INSIGHTS

ROUND TABLE: “What are the key factors influencing Edinburgh’s attractiveness to property developers and commercial occupiers?” Paul Curran, managing director, Quartermile There are a multitude of factors attracting property developers to Edinburgh. As a capital city, Edinburgh’s unique blend of history and progressiveness makes it an attractive prospect for many, as does the high quality of lifestyle in the city – it is also comparatively compact and walkable, with excellent public transport too.   The city’s international reputation attracts tourism and overseas investors.  This leads to a great deal of investment in its infrastructure and leisure sector, and the role of the City of Edinburgh Council in promoting the city to developers should not be underestimated either.  All of this makes Edinburgh an attractive choice for developers and, with its more favourable entry costs, an excellent alternative to London. Edinburgh is appealing to commercial occupiers thanks to the quality of the office space available and the excellent road, rail and air transport links. Edinburgh is becoming a hub not only for the financial sector, but also for technology. It’s now second only to London in this sector, which continues to grow at an impressive rate, undoubtedly attracted by the city’s strong talent pool thanks to the presence of the universities.

Lynn Smith, head of development, corporate, The EDI Group Edinburgh boasts some of the world’s finest buildings, with a number of major developments currently underway. The abundance of available properties and the variety of development sites, as identified in the Edinburgh 12, make Edinburgh an attractive proposition for investors looking to diversify their property portfolio. The Council’s strategic site opportunities provide a platform for property developers to step into the marketplace and bid quickly and cleanly for large scale development opportunities. The challenge is to identify the next generation of good quality sites and maintain the supply. Edinburgh is poised to capitalise on London’s overheated property market. It is an exciting time to be designing and seeking planning consent in the office market. Edinburgh is ranked second in the UK for financial services and this offers a unique opportunity for property investors to sign up some of the world’s top financial organisations, stimulating demand due to the under supply of vacant space. The next supply is now being procured safe in the knowledge that there is strong demand. This, along with the growing science and technology sector, means Edinburgh has the ability to be a global hub, attracting businesses from afar.

“EDINBURGH IS BECOMING A HUB NOT ONLY FOR THE FINANCIAL SECTOR, BUT ALSO FOR TECHNOLOGY AND IS NOW SECOND ONLY TO LONDON IN THIS SECTOR.”

14 INVEST EDINBURGH | OCTOBER TO DECEMBER 2015 |

Cameron Stott, director, JLL Developers and investors are always attracted to successful cities with a healthy commercial property market driven by occupier demand for quality office accommodation. It is as simple as that. Success can be driven by a variety of factors and Edinburgh, in particular, has a number of selling points. Buoyed by healthy economic prospects, the city boasts a rich cultural heritage, a world renowned university with additional highly respected tertiary education institutions, an exceptional quality of life and burgeoning software and digital media and financial service sectors. However, the foundation for Edinburgh’s success, past, present and future, is the quality of the labour force. Edinburgh has an historic, world renowned reputation in this regard. The ability to attract and retain the required volume of appropriate qualified staff to fuel growth is at the forefront of all successful businesses, more so now than ever before. Edinburgh has one of the highest proportions of qualified staff in the UK, with a constant flow of graduates coming out of our universities. The workforce factor is crucial to businesses being attracted to the city and once here, expanding. Demand is also driven by the entrepreneurial flair of Edinburgh’s young and aspiring professionals, which continues to create and launch new businesses and initiatives that are making an impact both at home and on the global stage. So, in an environment where businesses are keen to attract and retain the best staff, a quality working environment, with excellent accessibility and staff amenities, are paramount. That is why developers and

AMERICAN TECHNOLOGY FIRM DELL HAS OPENED A FULL-SERVICE SECURITY OPERATIONS CENTRE IN TANFIELD, NORTH OF EDINBURGH CITY CENTRE.

investors are seeking to deliver new office accommodation where occupiers want to be located – close to major transport hubs such as Haymarket and Waverley train stations and elsewhere in the city centre. JLL research suggests there is demand from occupiers for over 74,000m2 of office accommodation in Edinburgh over the next two to four years, a sure sign of a successful city. However, developers will need to increase the rate of development if Edinburgh is to meet that demand. Jim O’Donnell, development director, Pentland Studios In planning the UK’s first purpose-built film studio, prior to selecting Straiton on the outskirts of Edinburgh, we had actually assessed 28 sites across Scotland. Our considerations included everything from transport links to accessible utilities, from complimentary facilities to the site’s international perception – even local education facilities to feed the talent pipeline. For us, the aim is to complement Scotland’s existing studio spaces and stunning locations by creating a world-class facility that will draw national and international TV and film productions to Scotland. The 12 hectare development, if approved, will be almost twice as big as Pinewood and, being purpose-built, Straiton will give the unique opportunity to combine production facilities with a worldclass 7,000m2 data centre. It incorporates a satellite ‘earth-station’ and houses the secure cloud-based file storage systems that are essential. Even Pinewood doesn’t offer these facilities in the UK. Edinburgh is undoubtedly one of Europe’s greatest cities, with a reputation for its festivals and year-round cultural life. That gives this location immediate international recognition, while the expansion of direct routes into the airport over the last year just strengthens the appeal for international talent. Edinburgh’s colleges and universities are also a great asset. The talent pipeline here has been recognised by the industry, with the winners of the BAFTA Scotland

www.investinedinburgh.com

award coming from Edinburgh’s education institutions for the last five years. Working in Edinburgh enables us to build a future-proofed studio that combines purpose-built production facilities with international recognition; a film academy with student residence; a visitor attraction and a hotel. This site is an unbeatable combination of scale, facilities and deliverability.

generation of workers want to enjoy life too. This means easy and instant access to everything that our vibrant city centre has to offer. Underpinning all of this are the hard economic facts and figures which always deliver for Edinburgh; a diverse sectorbased economy, a highly qualified and educated workforce and high quality housing and quality of life. What is there not to like?

“FOR US, THE AIM IS TO COMPLEMENT SCOTLAND’S EXISTING STUDIO SPACES AND STUNNING LOCATIONS BY CREATING A WORLDCLASS FACILITY THAT WILL DRAW NATIONAL AND INTERNATIONAL TV AND FILM PRODUCTIONS TO SCOTLAND.”

Oliver Millican , managing director, Parabola We relocated our business from London to Edinburgh in 2013 and have found the city to be very welcoming both as a developer and also an occupier within the city centre. Edinburgh is unique, offering its inhabitants an excellent quality of life within a compact and cosmopolitan conurbation with good transport links to the rest of the UK and Europe. The city has a diversified economy with a strong financial services presence but also burgeoning Tech and Biotech sectors. There is a well-educated workforce and we have been able to recruit a strong team and have been impressed by the quality of the graduates from the city’s many top-ranked universities. In addition the city has a first class network of professional services firms, which have supported our business and enabled us to grow quickly. In particular, we have found the city’s Council very supportive: with initiatives such as Edinburgh 12 they are genuinely committed to development across the city. We also believe that the investments that the city has made in transport initiatives such as the Edinburgh Tram and improvements to Haymarket Station will further contribute to the attractiveness of the city for occupiers. Edinburgh is now going through a period of growth with major schemes such as Edinburgh St James being brought forward. To sustain and build on these successes developers and policy makers need to continue to evolve their thinking to understand the needs of the city and to work in collaboration to take forward new development opportunities.

Charlotte Swanson, area asset manager (Scotland), Artisan Real Estate Investors Anyone experiencing the excitement and popularity of yet another recordbreaking Fringe Festival this year can understand why Edinburgh stands out as a global city destination. The sheer vibrancy and high quality of life produced here in the last month alone is enough to propel the city on an international stage all year long. The reasons why so many visitors come to Edinburgh to enjoy the city are the same reasons why it remains attractive to commercial audiences and investors – a perfect storm of history and heritage mixed with beautiful architecture, open green spaces and a healthy sense of celebration and lust for life. Our future occupiers increasingly want to be at the heart of this action, which is why locations like New Waverley are becoming highly sought after. Of course we have to offer high quality office accommodation, but the new

AMERICAN DATA CENTRE AND NETWORKING SOLUTIONS PROVIDER BROCADE HAS OPENED AN OFFICE ON CANNING STREET, IN EDINBURGH’S CENTRAL BUSINESS DISTRICT.

| OCTOBER TO DECEMBER 2015 | INVEST EDINBURGH 15


<MAKINGITHAPPEN The 21st Century Homes project is delivering hundreds of new homes in Edinburgh.

<ADDEDEXTRAS © Forth Ports Cruise The MV Britannia visited Edinburgh in 2015, allowing passengers to visit HMY Britannia (below), one of the UK’s most popular tourist attractions.

Andrew Kerr, new chief executive of the City of Edinburgh Council, explains how the Council is catalysing development.

UNLOCKING NEW DEVELOPMENT OPPORTUNITIES The City of Edinburgh Council is the city’s largest landowner, and the proprietor of a number of Edinburgh’s most iconic buildings: more than a quarter of our properties were built prior to 1919. Aiming to deliver a smaller and better quality estate, we are unlocking new development opportunities, through the judicious release of surplus land and property. A number of listed buildings have recently been sold for redevelopment. These include India Buildings, (which Jansons plans to convert into a four star hotel); the former Boroughmuir High School, (which is being sold to Cala Homes for redevelopment into 100 apartments); and 1 Cockburn Street, (which will provide a new home for the Royal Edinburgh Military Tattoo). We have also agreed to grant a long lease on the Royal High School, (which Duddingston House Properties aims to refurbish as a world-class hotel) and Castle Mill Works, (which Edinburgh Printmakers plans to restore as a new arts hub). These transactions secure the long-term future of these historic buildings, draw millions of pounds of investment into Edinburgh and create hundreds of new jobs. The Council has also facilitated some of the most strategically important

16 INVEST EDINBURGH | OCTOBER TO DECEMBER 2015 |

“THROUGH INITIATIVES SUCH AS THESE, THE COUNCIL IS HELPING ESTABLISH EDINBURGH AS A GLOBAL HOTSPOT FOR PROPERTY INVESTMENT. “ developments in Edinburgh. By combining our assets with those of key landholders we have unlocked flagship developments, such as New Waverley and Edinburgh St. James, and brought to the market gap sites at King’s Stables Road and Torphichen Street. These deals have attracted numerous inward investors to the capital and will deliver hundreds of new homes, along with new offices, hotels, and retail and leisure units. In 2010, the Council took the bold decision to cross fund the cost of the Edinburgh International Conference Centre expansion, Atria, which marked us taking a greater role in the development of the capital. Atria provides much needed grade ‘A’ office space and gives the city a competitive advantage in attracting new and retaining existing businesses. With a highly impressive tenant list including PwC, Brewin Dolphin, IBM, AON, Alliance

Trust and the Lothian Pension Fund, Atria has been a highly successful development for us. It is now on the market. Building on the success of the 21st Century Homes’ housebuilding programme, which is delivering hundreds of new affordable homes across Edinburgh, the proposed ‘Edinburgh Homes’ project would see us create an arm’s length company charged with delivering 1,500 new rental homes each year. Meanwhile, the newly-created City Strategic Investment Fund is providing capital for projects to help grow the city’s economy, beginning with the £2m East Hermiston Business Park, a speculative development which will deliver 1,600m2 of high-quality industrial units. Finally, the £1bn City Deal, if successful, would give the city and its regional partners the powers and resources needed to undertake strategic investments in vital enabling infrastructure.

www.investinedinburgh.com

AWARD-WINNING VEGETARIAN BISTRO 1847 HAS ANNOUNCED PLANS TO OPEN A RESTAURANT AND COOKERY SCHOOL IN EDINBURGH THIS AUTUMN.

INSPIRING PORT OF CALL Edinburgh’s popularity with operators and passengers alike has seen the city win cruise destination awards in both 2009 and 2012. More than 90,000 visitors arrived in Edinburgh via the ports of Leith, Newhaven, South Queensferry and Rosyth in 2014 – the highest figures on record – with spend by passengers and crew generating an estimated £6.5m for the local economy. Recent investment in the dredging of Newhaven harbour by Forth Ports has contributed to a highly successful year, with more than 70 ships calling at the four ports in the 2015 season. The global cruise industry is currently growing robustly with an estimated 21million passengers now considering a cruise each year. For Scotland, expansion to over 1.1million visitors annually is expected by 2029 and as the capital city and most popular tourist destination, Edinburgh is expected to host a significant number of these visitors. The cruise industry is responding to the growth of the market by commissioning increasingly larger ‘super liners’ capable of carrying more than 3,500 passengers along with 1,500-plus crew. There are currently 15 ships of this size or more under construction. One of the most famous super-liners already in service, The Royal Princess, docked at South Queensferry nine times in 2015 alone.

www.investinedinburgh.com

MORE THAN 90,000 VISITORS ARRIVED IN EDINBURGH VIA THE PORTS OF LEITH, NEWHAVEN, SOUTH QUEENSFERRY AND ROSYTH IN 2014.

© Marc Millar In recent years, ports have seen an increase in ‘spontaneous’ passengers who opt not to book onto a shore excursion trip, instead choosing to explore the nearby area. As the typical cruise passenger is affluent, with considerable disposable income, this trend has greatly benefitted the communities of South Queensferry and Leith as visitors spend more time in the area, enjoying local attractions, shops and leisure opportunities. Regular public transport links to the city centre enable passengers to experience more traditional sights such as Edinburgh Castle, the Palace of Holyroodhouse or, during August, the Royal Edinburgh Military Tattoo. The

KING BLOOM COCKTAILS HAS LEASED A WAREHOUSE IN THE WEST TELFERTON INDUSTRIAL ESTATE FOR THE MANUFACTURE AND DISTRIBUTION OF ITS READY-TO-DRINK COCKTAILS.

surging number of cruise passengers visiting the city has been a boon for the tourism industry, as has the extension of the cruise season into the shoulder months of March to September. With all signs showing that this growth is set to continue, it’s full steam ahead for Edinburgh’s cruise ship offering, which will have a positive impact on development plans at Western Harbour, Waterfront Plaza and Ocean Terminal.

www.cruiseforth.com www.forthportscruise.com

| OCTOBER TO DECEMBER 2015 | INVEST EDINBURGH 17


<INNOVATIONFOCUS

DEPTH AND DIVERSITY BOOST 3D INNOVATION Researchers in Edinburgh are pushing the potential of 3D printing to exciting new limits. Main: The 3D printing process developed at Heriot-Watt University enables live stem cells to be printed in the shape of organs.

A

specialised 3D printing process developed by Dr Will Shu and his colleagues in HeriotWatt University’s Biomedical Microengineering Group has the potential to eliminate the need for organ donation. Dr Shu’s team was the first to successfully print embryonic cell cultures from human stem cells. These cells have an ability to replicate indefinitely, enabling them to differentiate into almost any cell type in the human body. The technology could ultimately be used to create viable 3D organs for transplant patients using their own cells. “This would entirely eliminate the need for organ donation and solve the problem of immune suppression and transplant rejection,” explains Dr Shu. A crucial part of the process is creating a 3D scaffold to support the live cells. A breakthrough came this year when Dr Shu’s colleagues at Tsinghua University in Beijing developed a suitable gel. “Using the new gel with our 3D printing system has produced a 3D matrix containing highly viable live cells,” said Dr Shu. “We have run specialised imaging tests and have proved that the cells remained alive and functioning at sub-cellular level after the printing process was complete.” CITY PIONEERS This is just one of a number of novel applications for 3D printing being pioneered in Edinburgh. At the specialist 3D software developer Anarkik3D, Ann Marie Shillito is bringing together haptic technology, 3D printers and bespoke software to create a tool that she believes will inspire and excite creative

18 INVEST EDINBURGH | OCTOBER TO DECEMBER 2015 |

Inset: Red Robotics’ 3D printed kit robot. Left: Anarkik integrate 3D digital modelling with haptics, graphics and even sound.

“YOU CAN GET A REAL SENSE OF HOW THE ULTIMATE PRODUCT WILL FEEL AND RESPOND TO TOUCH.” pupils in school with the possibilities offered by computers. A jeweller and ex-lecturer, Ann Marie was a research fellow at the Edinburgh College of Art when she first came across haptic technology. Now commonly used in gaming, haptic devices simulate the sense of touch by applying forces, vibrations, or motions to the user. Working with Alex Shaw, an Edinburghbased software engineer, Ann Marie has integrated a haptic device with 3D digital modelling to allow craftsmen to design digitally in 3D. “You can select different degrees of hardness and get a real sense of how the ultimate product will feel and respond to touch, then produce a prototype using a 3D printer.” Ann Marie is now exploring the feasibility of a commercial product for learning packages, using funding from Innovate UK.

She is combining haptics, graphics and other sensations, such as sound, to create environments where pupils can explore different environments, for example, how sounds differ when played under water or in open air. “It offers a powerful tool to aid learning across many disciplines.” Anarkik3D has secured further funding from Innovate UK to integrate virtual visioning tools, such as Occulus Rift, to create a powerful product for the education market. WOW FACTOR Another Edinburgh company making creative use of 3D printing is Red Robotics, founded by Dr Alexander Enoch, who recently completed his PhD in robotics at the University of Edinburgh.

“THIS WOULD ENTIRELY ELIMINATE THE NEED FOR ORGAN DONATION AND SOLVE THE PROBLEM OF IMMUNE SUPPRESSION AND TRANSPLANT REJECTION.”

GERMAN WIND TURBINE MAINTENANCE PROVIDER DEUTSCHE WINDTECHNIK HAS OPENED AN OFFICE IN EDINBURGH AFTER WINNING MAINTENANCE CONTRACTS FOR TWO SCOTTISH WIND FARMS.

Dr Enoch has developed a low cost, functional, walking, 3D-printed robot designed for education and hobbyists. Red Robotics won the Inspire Launch Grow awards, which are run annually by the University of Edinburgh, ahead of 58 other hopeful entrepreneurs. Dr Enoch is planning to use his prize money to dedicate time to the start-up. “Pricing is the driver: as an engineer that is a challenge. How can you make it more cost effective, while keeping the ‘wow’ factor?” he says. OPPORTUNITY Two other Edinburgh-based engineers have also turned a problem into an opportunity. Chris Balmer, a PhD student – and one of the team working with Dr Shu at HeriotWatt – joined the MIT Global Founders’ Skills Accelerator (GFSA) in 2013 while completing his undergraduate studies at Heriot-Watt. The GFSA is a four-month programme in which experienced entrepreneurs help teams to develop their business ideas. Chris and his teammates developed a commercial application that offered skiers the ability

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to print personalised 3D insoles for use in rented ski boots. “The experience was intense – with the team often working 14 hour days. However, we all found it hugely rewarding,” says Chris. Although Chris and others in the team are now pursuing further study, he has not lost the entrepreneurial bug: his PhD thesis is investigating 3D printed medical stents for cancer treatment. PROTOTYPING Like Dr Enoch, Siraj Sabihuddin – a postgraduate student in the Institute for Energy Systems at the University of Edinburgh – has bold ideas to reduce the cost of prototyping, this time in electronics. “I wanted to achieve affordable 3D printing of metals, allowing a wide variety of structural and electrical components to be created at lower cost,” explains Siraj. “I had to consider the electrical conductivity or resistance of the material and its magnetic permeability, which impacts how easily an electrical current or magnetic field can pass. “Sintering is good for producing well defined characteristics in metal parts, with

THE ENTREPRENEURS BEHIND THE BLACK MILK CEREAL DIVE CAFÉ IN MANCHESTER HAVE ANNOUNCED PLANS TO OPEN A CAFÉ IN EDINBURGH OFFERING OVER 150 BRANDS OF BREAKFAST CEREAL.

iron ideal, but by using Magnetite (an iron oxide, which is a ceramic) it is possible to produce steel. Other controlled alloying is also possible using 3D printers.” Siraj now has an initial prototyping machine, which could provide a useful tool for researchers. “It could also extend the industrial application of 3D printing by reducing entry costs, but more research is needed,” he says. There is, however, one concept that requires no further proof: Edinburgh’s diverse research strengths undoubtedly offer a rich environment for pioneers to push new technologies in fresh directions.

bmg.hw.ac.uk www.ed.ac.uk/informatics www.anarkik3d.co.uk

| OCTOBER TO DECEMBER 2015 | INVEST EDINBURGH 19


FIND OUT HOW YOU CAN INVEST IN EDINBURGH EXPO REAL 2015

MIPIM UK 2015

Messe München Messegelände, Munich, 81823, Germany

Olympia London Hammersmith Road, Kensington, London, W14 8UX, United Kingdom

5-7 October 2015

21-23 October 2015

Edinburgh will be showcased at the ‘Innovation Districts: Building the Innovation Economy’ forum at 12:00 on 5 October at Hall A1, Stand 432.

Visit Edinburgh at stand C-31:D-30 Edinburgh will be showcased at the ‘Investors into Cities’ forum at 14:00 on 21 October in the Club Room.

To discuss opportunities in Edinburgh at EXPO REAL 2015 or MIPIM UK 2015, please contact: Elaine Ballantyne Head of Investor Support and External Relations t. +44 (0)131 469 3854 m. 07770 311323 e. elaine.ballantyne@edinburgh.gov.uk w. www.investinedinburgh.com

ALL RIGHTS RESERVED. MATERIAL CONTAINED IN THIS PUBLICATION MAY NOT BE REPRODUCED, IN WHOLE OR IN PART, WITHOUT PRIOR PERMISSION OF THE CITY OF EDINBURGH COUNCIL (OR OTHER COPYRIGHT OWNERS). WHILST EVERY EFFORT IS MADE TO ENSURE THAT THE INFORMATION GIVEN HEREIN IS ACCURATE, NO LEGAL RESPONSIBILITY IS ACCEPTED FOR ANY ERRORS, OMISSIONS OR MISLEADING STATEMENTS.

Invest Edinburgh (Oct-Dec 2015)  

Our cover feature this issue looks at the rapid growth the city is experiencing, with tourism, academia and the technology sector all fuelli...

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