Invest In Perth Magazine | The Net Zero Issue

Business Magazine Issue 13: The Net Zero Issue

Highland Spring Group How the UK’s number one natural source bottled water brand is investing in a greener future

Working Towards Net Zero From Perth Our ten-page special on the projects and businesses leading the charge

PLUS MULTIMILLION-POUND INVESTMENT IN CROSS TAY LINK ROAD / WASTED DEGREES REACHES EUROPE / PROPERTY UPDATES / FUNDING OPPORTUNITIES / Invest in Perth Magazine

1

Perth: The Place to Grow Your Food & Drink Business in Scotland Perth Food and Drink Park is an exciting £7.6m development dedicated to supporting Scotland’s growing food and drink industry. Choose from purposebuilt, high-spec, food standard units and flexible serviced plots for development.

Sites 6 - 9 are situated just off the Inveralmond Roundabout on the A9, and offer a rarely available opportunity to buy development land for commercial or food-related uses.

Site 6 - 1.99 acres | Site 7 - 2.05 acres | Site 8 - 2.25 acres | Site 9 - 1.21 acres

See InvestinPerth.co.uk for full information

“Quite simply, Perth Food & Drink Park has allowed Kumar’s Curry Club to scale at speed.

From the turnkey, purpose-built food unit to logistical ease for our UK-wide distribution,our location here has been a significant contributing factor to our rapid growth and success.”

- Swarna Kumar, Kumar’s Curry Club

2

Invest in Perth Magazine

WELCOME From UK market leaders and global brands such as Highland Spring, SSE and Stagecoach Ltd, to independent entrepreneurs breaking into Europe and the rapid advancements of infrastructure developments, it is an exciting time to be leading the charge.

Developments such as the Cross Tay Link Road (page 11) are an excellent example of this commitment. As the largest infrastructure project ever undertaken by Perth and Kinross Council, the benefits to both residents and businesses are multiple.

T

his issue of Invest in Perth Magazine is focused on showcasing the wealth of innovation, investment and developments currently driving growth and offering opportunities across all business sectors in the Perth and Kinross region.

Partnership working will be an integral part of this and we are fortunate to have longstanding relationships across Tay region which have been strengthened thanks to the Tay Cities Deal. These same partnerships are driving a targeted tourism campaign, bringing international visitors to Tay Country.

Of course, there are significant challenges ahead; inflation is at an all-time high sitting at 9.4% and as a new administration we are very aware that as well as the impact on our local and national economy, the cost-of-living crisis affects staffing, resourcing, and supply chains for businesses of all sizes.

We must seek to address these concerns while ensuring that we continue to support industry and effect positive change by attracting high value investment opportunities into the city and towns of our vibrant area.

Councillor Grant Laing Leader of Perth and Kinross Council Sustainable | Innovative | Connected

Highlights 4

Wasted Degrees Exports into Europe

9

Funding Opportunities for Business

11

Cross Tay Link Road Now Underway

12

Highland Spring Group’s Landmark Rail Freight Facility

16

PH20 project Given The Green Light

17

Scottish Water Horizons £2m Solar Power Scheme

18

SSE to Invest £15bn in Scottish Clean Electricity Infrastructure

20

Tourism Partnership Seek to Build International Demand

22

Property Investment Opportunities from Graham + Sibbald

How we work, live, and do business is evolving and Perth’s ability to adapt in a changing global marketplace has secured its reputation as an innovative business destination. If you are seeking an ambitious, vibrant city in which to invest your capital, build your start-up or place your headquarters, contact us: Kirsty Easton Inward Investment & Marketing Officer keaston@pkc.gov.uk +44 (0) 1738 475364 Perth and Kinross Council, Pullar House, 35 Kinnoull St, Perth, PH1 5GD

Follow us on LinkedIn

@investinperth investinperth.co.uk

On the cover: Morwen Mands, Head of Sustainability, Highland Spring Group.

Image © Highland Spring

Produced by The Red String Agency on behalf of Invest in Perth Writing: Nicola Martin Design: Cain Martin

Invest in Perth Magazine

3

FEATURE

Business Leaders: Take 5 Conall Low and Jack Low, Wasted Degrees

E

xpansion into Europe may not have been at the forefront of Conall Low’s mind when, in 2017, he left his recently acquired degree behind to launch Wasted Degrees Brewing with fellow craft beer enthusiast, John Thompson.

However, a lot of beer has flowed since then and this autumn will see the Highland Perthshire brewery take its first steps into exporting in a move that is predicted to elevate its liquid output 20% ahead of its 2022 growth forecast.

In the five years since it launched, the company has scaled several times. Most significantly, moving from Conall’s parents’ garage in 2019 to a fully operational site in Blair Atholl. It is now on target to produce around 225,000 litres of beer by 2026 giving a 66% compound annual growth rate over five years.

2021 saw a 125% growth in production output and increasing amounts of beer being shipped across the UK. This allowed the team

4

Invest in Perth Magazine

at Wasted Degrees to grow and in November last year Conall’s brother, Jack Low, acquired John’s share of the business. Jack’s background as the International Business Development Manager for The Scotch Malt Whisky Society brought experience in commercial development to the business.

Although continuously evolving in all areas, Wasted Degrees continues to brew its core range and an ever-changing line-up of smallbatch, limited edition beers. Underpinned by a strong sense of social and environmental responsibility, along with its fully electric renewables-powered brewhouse, Wasted Degrees makes a consistent effort to support local agriculture by brewing with Perthshiregrown ingredients whenever possible.

In March 2022, Conall and Jack successfully secured funding via the Council’s Green Recovery Capital Development Grant to enable the purchase of a canning line and labelling machine, both of which are designed and manufactured in the UK by Bolton-based Microcan.

We ask local industry leaders the questions that matter most.

Conall commented: “The acquisition of a canning line has been transformational for Wasted Degrees and will likely represent the largest single investment of the next five years.

As a business that began in a garage - a hobby running out of control - we’re now brewing back-to-back up to six days a week and preparing to launch into Europe this autumn.”

What challenges were you facing as a business that led you to apply for capital funding?

JACK: “Frustratingly, our plans for acquiring capital assets had been delayed due to the various challenges posed by Covid-19, particularly the reduced economic momentum which had led to fewer opportunities to grow our cash reserves.

“Whilst we’d grown significantly since 2017, the brewery was not in a position to fully fund the acquisition of the canning line from its own reserves – a cost of £45,000 plus VAT.

“Our packaging operation and staff base was operating at full capacity and we had no means of automating the process. 1,200litre batches of beer would take us four days to bottle and label by hand. This had led to sizeable inefficiencies and, combined with the lockdown closure of pubs and consumers pivoting to e-commerce, it had proven detrimental to the growth of the business.”

CONALL: “Our business thrives because it’s orientated to supporting the circular and local economy and our old bottling operations just didn’t align with our wider values. Our recipes aim to limit carbon creation and reduce both food waste and food miles, while championing the region’s produce – for example, we’ve brewed with deliciousbut-blemished Perthshire raspberries that are rejected by supermarkets – and yet we were being held back in terms of production, growth and environmental impact.”

How does the new canning line improve your environmental footprint?

CONALL: “Cans are infinitely more recyclable; according to Stanford University, when it comes to the five most recycled household materials, recycling aluminium is the most energy efficient by a significant margin. And interestingly, recycling glass is the least energy efficient.

“Aluminium cans also create less carbon during their overall lifecycle of production, transport to the brewery, filling, and transport to consumer, simply because they weigh so much less than glass.”

JACK: “It’s worth adding that we are positioned in a postcode that also suffers from inflated ‘Highlands and Islands’ shipping charges; the weight of the glass bottles was an issue in this respect too. We weren’t content with creating economic and environmental gains through our use of local raw materials only to erode those gains through sub-optimal packaging solutions.

We needed the canning line to enable targeted and sustainable growth.”

How has the investment benefited Wasted Degrees in the first six months?

CONALL: “The grant award – 50% funding – made buying a canning line and labelling machine an immediate option which in turn allowed us to move to the next level of production. It’s that simple. The fact that we could source such high-quality kit designed and manufactured in the UK just made this even sweeter.

“We were at a point where we were struggling to keep up with demand and the canning line has enabled us to scale in a sustainable, responsible, and carbon-conscious manner.

It has turned that four-day job into a fourhour job, instantly delivering operational efficiencies and environmental savings, as well as enhancing our speed to market.”

What are your plans for exploiting that beyond-Scotland potential?

Although it’s early days, the sales run rate of cans is around 40% greater than that of bottles

CONALL: “Beyond this deal, we’re in conversations with buyers in France and Hong Kong. The capability to fulfil large orders efficiently is a confidence boost; the canning line is an enabler for us to better compete, to chase opportunities that had previously been out of reach.”

JACK: “In addition, we’re now producing a product that appeals more to the drinker and trade customer. In our experience, cans lend themselves better to shelf space optimisation and improve the average order value via multi-unit purchases.

JACK: “We’re on the cusp of signing a deal to export 15,000 units to Amsterdam later this year, our first export deal! This is new territory for us, and we have a lot to learn, but it will be the foundation that we need to further leverage the canning line investment and spread our Perthshire message further.”

Visit Wasted Degrees The brewery shop is open all year Monday to Friday, whilst the Wasted Degrees Taproom opens on Saturdays from April to September, serving up pizzas, stews, and BBQ alongside up to 12 draught beers and cider.

www.wasteddegrees.com

“Although it’s early days, the sales run rate of cans is around 40% greater than that of bottles. However, the largest ongoing impact commercially must be realising the potential to sell our product both in and beyond Scotland.”

Invest in Perth Magazine

5

NEWS

Perthshire Chamber of Commerce Appoint New President

P

erth-based businesswoman, Lori McGaffney, stepped into post as the President of Perthshire Chamber of Commerce, the region’s largest business membership organisation, in November 2021.

With nine months now under her belt, and the Chamber’s popular face-to-face networking events reopened, Lori has been working closely with the team to strengthen their offer for businesses moving forward.

Lori has first-hand experience of the challenges and opportunities faced by business owners.

Having built a successful career in financial services she made the bold move to open

her Evalucia womenswear boutique in 2009.

Growth of the brand came via the bricks-andmortar shop and a successful online platform, resulting in a move to larger premises in 2019.

Earlier this year, Lori expanded her retail offering when she opened a second shop, Petit Pas, selling children’s shoes.

has so much to offer businesses and although we cannot ignore the challenging times we operate in, I am confident that as a region we have all of the factors required to create longterm sustainable growth for future generations of entrepreneurs, and for businesses of all sizes, across industry.”

“When I talk to the wider business community in Perth and the wider region I am buoyed by the resilience and ambition on offer. The area

Perthshire Chamber of Commerce is part of a global network and is well-connected to key regional and national decision-makers.

The Glenturret Lalique Restaurant Awarded Michelin Star Just seven months after opening its doors in July 2021, The Glenturret Lalique Restaurant was awarded a one Michelin star.

The restaurant run by Scottish-born Head Chef, Mark Donald, is the first in-distillery fine-dining concept launched by French crystal house Lalique and the very first to be awarded a Michelin star, joining the ranks of only a handful of restaurants in Scotland to hold such an honour.

Speaking about the Michelin achievement, Mark said: “I am so proud that Michelin has acknowledged the hard work, creativity and dedication from my team – and everyone at The Glenturret Distillery. Our Scottish heritage and surroundings are vital to the heart and soul of the restaurant.”

Since the restaurant’s inception, Mark has worked closely with his team to take inspiration from the surrounding terroir.

Restaurant developments at The Glenturret follow a £31m investment by luxury global brand, Lalique, and investment partner Hansjörg Wyss, marking a new age for Scotland’s oldest working distillery.

Using the finest, hyper-local produce available, dishes on the tasting menu include Raw Cherrystone Clam, Gooseberry and Dulse; Tattie Scone; Langoustine, Buttermilk, Daurenki Tsar Impérial; Maracaibo Millefeuille, Green Coffee and The Glenturret Triple Wood.

6

Invest in Perth Magazine

To experience The Glenturret Lalique Restaurant first hand, book online at: www.theglenturretrestaurant.com

Seven-figure Perth Dental Hub Transforming B-listed bank Clyde Munro partners with dental industry global leader to create pioneering facility A groundbreaking dental clinic and state-ofthe-art teaching centre is set to bring a smile to Perth city centre.

The pioneering £1 million-plus project has been created by Clyde Munro Dental Group in tandem with Dentsply Sirona, the world’s largest manufacturer of professional dental products and technologies, headquartered in Charlotte, NC (USA).

expanding their knowledge of digital dentistry.”

Clyde Munro, which added Dental Care Perth to its fast-expanding portfolio last year, operates more than 60 practices across Scotland, employing more than 200 dentists and caring for more than 460,000 patients.

The seven-figure investment is transforming a three-storey B-listed building on Perth’s South Methven Street and will support dentists from across the UK via a cutting-edge training academy, as well as introducing the UK’s first SureSmile® Studio, providing SureSmile Aligners for straightening teeth.

The group has grown rapidly since being founded with seven practices by Jim Hall in 2015 and, earlier this year, secured a £25 million cash injection from Investec to fund further expansion plans.

Verimac director and Perth-based property developer, Brian Blair, welcomed the final piece in an ambitious jigsaw which has transformed his adjacent premises with specialist units for Salmoni Optician and Clyde Dentist Surgery.

Mr Blair said: “This development will provide a significant economic boost for Perth.

“It’s a seven-figure investment which is regenerating a historic, corner-site building and it will put Perth on the map in terms of pioneering, high-end digital orthodontics. The development will bring clients from all over the country, along with dentists and clinicians

Fiona Wood, Chief Operating Officer with Clyde Munro, said: “Perth will be the first SureSmile Studio and Dentsply Sirona centre in Scotland.

“The innovative, stand-alone training academy will provide dentists from across Scotland with access to the latest digital technology, which is transforming the industry, and the range of new treatments being offered to our clients.

“Perth’s geographical location at the heart of Scotland certainly played a key part in the decision to unveil our first training hub in the Fair City. It is easily accessible and ideal for dental teams based in towns and cities across Scotland.”

Auctioneer’s Airport Expansion A recent move to a 37,000 ft2 hangar space at Perth Airport Perth, along with an improved digital offer, has allowed Iain M. Smith Auctioneers to build on their 25 years’ experience and expand their reach from Scotland-wide to a global marketplace.

Their new split-level auction hall is situated in a vast hangar, just 100 yards from the post-fire rubble of their old base, and is now one of the largest under one roof in Scotland.

The well-known auctioneer has been thrilled with the upsurge in business since relocating – but it’s not just the new premises that have impacted his bottom line.

The decision to invest in the latest technology to broaden his global reach has paid dividends.

“We have been very fortunate post-lockdown,” said Iain, who saw 2000 lots going under the hammer at a recent sale, setting an all-time record.

“The move to internet-based auction technology has been key. Our online presence has seen business treble over the last two years and we are seeing buyers online from across Europe, the USA, China and Australia, as well as closer to home. We now have nine full-time staff, with four of our porters enjoying more than 80 years’ experience between them.

“Perth Airport is an ideal location for us. I have spent most of my working life in Perthshire and

in addition to being at the heart of Scotland’s roads network, the area offers a fabulous quality of life.”

Holding sales every three weeks, Iain M. Smith Auctioneers handles everything from antiques to house clearances and sales of engineering and garden machinery from Central Scotland to Aberdeenshire. Thier premises are open for pre-sales viewings and on auction days for anyone who wants to pop in.

Invest in Perth Magazine

7

NEWS

Kumar’s Curry Club Wins at Scottish EDGE Awards

O

ne of Perth’s first Food and Drink Park businesses, Kumar’s Curry Club, has succeeded in securing £75,000 of funding at the recent Scottish EDGE Awards.

Scottish EDGE promotes long-term sustainability of the funding pot through its pioneering ‘EDGE pledge’, inviting award winners to sign up to contribute a minimum of 1% from exit proceeds back into the fund.

This year, Scottish EDGE received 177 applications with finalists invited to pitch to judges on 25th and 26th May in front of a live audience. Seeking early-stage, high-growth businesses with entrepreneurial potential, winners went on to benefit from a total funding pot of £1.6 Million.

Owned by Praveen and Swarna Kumar, Kumar’s Curry Club was one of only 40 businesses recognised in the 2022 awards.

Praveen and Swarna impressed the judges

with their ambitious strategy for growth, outlining how their frozen, premium, Indian meals business aims to scale in the next five years.

Combining spices grown on their family farm in India with quality, seasonal, British produce the company has identified two routes to market; a direct-toconsumer monthly curry club subscription model, and by selling wholesale to farm shops, delis, garden centres and small supermarket chains throughout the UK. Leah Pape, Head of Entrepreneurship and Investment at Scottish Enterprise, said: “The high calibre of innovative applicants EDGE attracts is testament to its ever-growing reputation and gave the EDGE 19 judging panel a very tough job! Our congratulations to all the winners.

Scottish EDGE has an important role to play in supporting innovative, high growth potential start-ups, and Scottish Enterprise is proud to

help nurture the entrepreneurial talent that will drive Scotland’s future economic prosperity through our continued support.”

Scottish EDGE is supported by The Hunter Foundation, Royal Bank of Scotland, the Scottish Government and Scottish Enterprise and has a vital role to play in the country’s economic growth.

our drive to a cleaner, greener country and also marks another major milestone in our customer transformation strategy.

“I am proud of our team who have worked incredibly hard to introduce our new customer contact centre. This is an exciting and major step forward in our plans and from this week, our new customer service team will be serving our customers right across the UK.

Stagecoach Opens New Call Centre in Perth

S

tagecoach, the UK’s largest bus and coach operator, has officially opened its new customer contact centre, based at its headquarters in Perth, allowing customers from across the UK to access the one-stop phone and digital contact point.

Stagecoach UK Managing Director Carla Stockton-Jones officially launched the contact centre with local authority, industry and other stakeholders.

The multi-skilled team of over 60 customer service advisors and team leaders will operate 8

Invest in Perth Magazine

an improved seven-days-a-week service and will move to fully extended opening hours on weekdays and weekends within the year to align better with how people travel.

Major investment is also being made in a new customer relationship management system to help provide tailored support, better understand customers’ end-to-end journeys, and quickly address common emerging issues.

Carla Stockton-Jones said: “This is a clear demonstration of our commitment to providing the best possible service to customers in

“There is a huge opportunity to attract people to more sustainable public transport in the years ahead as national governments look to move to net zero. Delivering the best experience to every single customer is central to helping people make the switch away from cars to public transport.”

David Littlejohn, Head of Planning and Development & Chief Planning Officer for Perth and Kinross Council, helped to officially launch the event and said: “Sustainable transport is crucial in the fight against climate change and this new customer contact centre will make it easier for people to leave the car at home and travel in a more environmentally friendly way.”

VIEWPOINT

Funding Opportunities for Business

T

here is no denying that business is operating in challenging economic times; Covid-19, Brexit and the war in Ukraine have placed an unparalleled series of pressures on companies of all sizes and with it, a 40-year-high inflation increase of 9.1% (figure as of June 2022)

When considering business finances, it is more important than ever to ensure all avenues have been explored and a robust strategy focused on sustainability, growth, and futureproofing is in place.

Growing your business and increasing sales often requires you to purchase assets such as new machinery or vehicles.

While In the past 12 you may have enough months the team cash to cover working at Economic capital expenses for Development in your company, you Perth and Kinross may look to funding opportunities to cover Council have the purchase of new supported 197 assets to enable your businesses secure business to expand £450k in funding. or to improve your carbon footprint or efficiencies.

A British Business Bank Survey published in 2019 found that 44% of SME businesses sought some form of external funding in the previous three years. Whilst the landscape has shifted significantly since then, the key reasons behind funding applications remain the same: • • • •

Grants can be used for everything from marketing to purchasing equipment and allow businesses to access funds that many traditional finance providers might consider a risk.

Starting a New Business Capital For Business Improvements Growth Funding Asset Purchase

Good cash flow is essential to a small start-up and while most directors will use their own funds to start the business, external funding can bring added value at this crucial stage.

If you’re established and seek to grow your business – either by increasing sales, improving efficiencies, expanding your range of products or services, moving into new premises, or expanding internationally – a grant for growth finance can help.

In the past 12 months the team at Economic Development in Perth and Kinross Council have supported 197 businesses secure £450k in funding.

This ranges from small £1000 grants via the Micro Enterprise fund up to £25,000 for capital investment via the Green Recovery Grant. Turn to page 4 to discover how Wasted Degrees utilised this to propel their move into exporting to Europe.

Key Opportunities There are currently five key funding opportunities available via Perth and Kinross Council.

Visit: www.investinperth.co.uk/funding-support Email: businessdevelopment@pkc.gov.uk Telephone: +44 (0) 1738 475364 Micro Enterprise Fund up to £1000 This small grant is open to all businesses and can be used for a variety of projects ranging from marketing to property improvement.

Crowdfund Perth and Kinross Business Fund up to £5000 Open to new business start-ups or existing SMEs providing additional funding when they secure community support.

Green Recovery Capital Development Fund up to £25,000 Open to all companies growing their business through capital investment with an emphasis on reducing their carbon footprint.

Beyond Scotland Market Development Grant up to £2500 This grant offers support for SMEs to explore both international export markets and opportunities across the wider UK. Open for Business Fund up to £10,000 The Open for Business Fund allows retail, hospitality and office-based businesses to improve their frontage and increase their kerb appeal.

For specialist pots or larger funds you may find Scottish Enterprise offers additional opportunities; in Scotland, businesses can look to Find Business Support for the most up-to-date information.

Invest in Perth Magazine

9

NET ZERO SPECIAL

Driving Net Zero From Perth In our 10-page special, we bring news on the businesses and projects leading the way from Perth.

The Scottish Government is committed to ending Scotland’s contribution to climate change by 2045 and, in December 2021, councillors from across partisan lines unanimously agreed on the Climate Change Strategy and Action Plan to be adopted by Perth & Kinross Council.

The key principles of the Perth & Kinross Climate Change Strategy are: •

To achieve net zero aligned with the Paris agreement and the Scottish Government targets, with the ambition of achieving them sooner.

•

To build a more resilient Perth and Kinross.

•

To deliver a fair transition and a green recovery from Covid-19.

•

To prevent an ecological emergency and enhance biodiversity.

•

To engage and empower our children and young people.

•

To empower our communities in line with the Perth and Kinross offer.

For more information, visit www.pkclimateaction.co.uk

10

Invest in Perth Magazine

Cross Tay Link Road Developments The multimillion-pound project is one of the most significant commitments in Perth’s Climate Change Action Plan.

C

onstruction of the new multimillion-pound Cross Tay Link Road (CTLR) is now underway with a due completion date of early 2025.

Following a robust procurement process, in August 2021 engineering and construction group BAM Nuttall were awarded the contract for the design and advance works of the project, with site preparation works in advance of the main construction carried out in the first half of 2022.

Addressing the long-term transportation needs of the area, the project offers a solution to the longstanding concerns about air quality in Perth by diverting traffic away from the most congested and polluted parts of the city centre.

show that for every pound spent on the capital cost of the CTLR it will generate £4.30 in revenue – bringing an additional £484 million of value to the economy.

Around this, it is predicted that the crossing will lead to £966 million of private sector investment in housing and employment.

It is predicted that the crossing will lead to £966 million of private sector investment in housing and employment

Funded by Perth & Kinross Council and the Scottish Government via the Tay Cities Region Deal, the Cross Tay Link Road has been heralded as playing a vital role in the future of Perth and Kinross – both economically and environmentally.

It will involve the construction of a new three-span bridge over the River Tay and a six-kilometre stretch of new carriageway linking the A9 and the A93 to Blairgowrie and the A94, just north of Scone. It also includes the construction of two kilometres of realigned dual carriageway on the A9 just north of the Inveralmond Roundabout.

As well as this, the aim during the build is to be as close to a net zero carbon development as possible, underscoring Perth’s intention to become one of the most sustainable small cities in Europe.

Economically, the project plays a vital role in delivering on the Council’s ambitions for Perth city and the wider region and will promote future economic growth and development of the surrounding area. Early estimates

Residents and workers in the Bertha Park development in western Perth, which has seen 3,000 new homes and a new secondary school open in the past three years, will gain easy access across the A9 and the Tay and future plans also include the exciting Perth West development, a 20+ hectare eco-innovation park, supporting hundreds of new jobs.

The Cross Tay Link Road is the flagship development of the Perth Transport Futures Project, which aims to take a holistic approach to managing traffic across Perth and Kinross.

perthtransportfutures.co.uk

Invest in Perth Magazine

11

NET ZERO SPECIAL

Highland Spring Group : Committed to Net Zero A landmark rail freight facility will bring leading producer of natural source water, Highland Spring Group, one step closer to its net zero goals.

T

hink of spring water in the UK and there is little doubt that Highland Spring will come to mind.

The Perthshire-based natural source water business is currently the UK‘s number one brand with annual sales volumes of still and sparkling water in 2021 now over 348 million litres, and the Highland Spring brand’s share of the total UK plain packaged water volumes sitting at a healthy 10%. It is also Britain’s leading exporter of water worldwide, providing healthy hydration in over 30 countries across the globe.

Its current position as the UK’s leading natural source water brand is testament to the vision and foresight of its founders when the family-run business launched in 1979; a time when the entire market for bottled water was less than 30 million litres a year.

leading ethical bottled water brand by The Good Shopping Guide for the last 14 years.

Crucially, the early adoption of environmental principles has gone on to shape the brand in its entirety.

In 2021, Morwen Mands, the company’s first Head of Sustainability, was appointed to deliver a long-term sustainability strategy

As a company, we have always been fiercely protective of our land and water source.

The company has remained under the ownership of the same family ever since, and the all-important decision to ensure from inception that their land was protected and free from any kind of pollution, pesticides or habitation, continues to serve them well.

which comprises an impressive roadmap of initiatives that the company has laid out to ensure it meets its net zero target by 2040.

It was this trailblazing strategy that meant Highland Spring was the first natural source bottled water brand in the UK to have its catchment area certified as organic by the Soil Association, and it has been named the

“Environmental leadership is at the heart of everything we do at Highland Spring Group and, as a company, we have always been fiercely protective of our land and water source.

12

Invest in Perth Magazine

“Understanding the important role we can play in accelerating sustainability efforts as a leading UK business is a responsibility we take seriously. Our strategy aims to create a positive impact for people, society and the planet and help future-proof the business.

“We are committed to reducing absolute scope 1, 2, and 3 greenhouse gas emissions by 90% from a 2019 base year and reaching net zero emissions by 2040.

“To help us achieve this, we’re working with Carbon Intelligence to develop an emissions reduction roadmap and have committed to setting both near-term and long-term science-based targets.

“We are aiming to be one of the UK’s first natural source water companies to have a validated target in line with Science Based Target Initiative (SBTi) Net-Zero Standard.

“Our goal is five years ahead of the Scottish Government’s proposed 2045 target, and 10 years ahead of the UK Government’s deadline.

“In addition, later this year we will publish our first Business Responsibility report which will bring-to-life our corporate activities which are focused on supporting our people, society and the planet.”

Sustainable Transport As a national and global supplier, it will come as little surprise to learn that transport is responsible for around 30% of Highland Spring’s carbon footprint.

Therefore, Morwen and her team are focused on a key milestone for the Group this year, the opening of a new rail freight facility in Blackford, which will become Scotland’s first dedicated rail freight distribution line by a private company in over a decade. The facility will deliver product from their production lines to their external warehouse in Daventry daily.

Working in partnership with Network Rail, Transport Scotland and the Scottish Government, this ambitious 10-year project, which has been in the making since 2012, is due to open in August 2022.

The new facility will reduce the Group’s environmental impact by removing 8,000 HGV movements from the road and will save 3,200 tonnes of CO2 every year.

“The rail freight project is an excellent example of the power of partnership working between the rail industry, government and business which will provide wider benefits to the Scottish environment and economy.

“As well as the obvious reduction in carbon emissions, the project is also bringing benefits to the community at a local level.

Being a considerate neighbour is a priority for the Group and we are committed to continuing to maintain strong relationships with the local Blackford community. We’ve engaged with the community every step of the way, sharing plans through the Community Council and inviting feedback as we go.

“The original plans for the site used an existing rail connection at the eastern end of the site, however, this would have resulted in the level crossing being closed for a prolonged period when the train accessed and exited the site causing disruption to local traffic flow.

Their good neighbour policy has also seen a mindful approach to design, which is reported to have been ‘sensitively created to minimise noise and visual impact.’ And, in addition, the rail contractor Story upgraded the path to the village cemetery which has been gratefully received by the community.

“A revised design was developed with Network Rail for a new rail connection at the western end of the site which provided multiple benefits for the local community and improved the operational efficiency of the facility.”

“The facility has been designed with long-term goals in mind. The Scottish Government’s target to decarbonise the railway by 2035 will see the electrification of the mainline, allowing us to move to electric trains at the same time.”

Invest in Perth Magazine

13

NET ZERO SPECIAL

Closing the Loop

H

ighland Spring Group’s state of the art production line in Blackford can fill at speeds of 73,000 bottles per hour, using some of the fastest and most technologically advanced machinery in the UK. Upgrades to its plant over the years have reduced energy consumption by up to 30%.

Exploring new sustainable packaging formats, and reducing the amount of packaging the business uses, remains a central part of its sustainability strategy.

“Innovation is crucial to business development and we were the first major water brand to launch a bottle made from 100% recycled PET plastic (cap and label excluded) which along with the rest of our bottles is 100% recyclable.

“We are on a journey to reach 100% recycled PET plastic across our entire product range (excluding caps and labels) by 2025 and move closer to creating a truly circular economy in the UK whereby no plastic is wasted and this valuable material stays ‘in the loop’.

“We welcome the introduction of a Deposit Return Scheme (DRS) which is due to go live in Scotland in August 2023. We have been heavily involved in discussions both as a leading natural source water producer, and

14

Invest in Perth Magazine

through our industry association, the Natural Source Waters Association, and are a founder member of Circularity Scotland, the Scheme Administrator for the Scottish system.

We see DRS as crucial to increasing recycling rates, reducing litter and increasing the availability of good quality recycled materials for us to use in our products.

“Consumers will pay a 20p deposit on bottles and cans between 50ml and three litres in size and this deposit will be refunded to the consumer when these are taken back to return points for recycling.”

Land and Water Stewardship

T

o support their organic certification for the catchment area in The Ochil Hills, Perthshire and their commitment to land and water stewardship, Highland Spring appointed their first ‘Guardian of the Source’, a role that is held today by the Group’s Head of Technical, Alex Haken. Alex and his team ensure the land and water source are protected 365 days a year to make sure every drop of Highland Spring water is as pure as nature intended.

“Water is one of the planet’s most valuable resources therefore we only harvest 3% of the rain that falls on our catchment ensuring its long-term sustainability as a water source.

“This matters, because as well as protecting our source, it is our responsibility to support and encourage wildlife on our land. We’re currently working with Forth Rivers Trust on a biodiversity programme to support healthy eco-systems and increase the flora, fauna and wildlife on our land by 2025.

“As part of this, over 50 volunteers, including employees, helped to plant over 2,000 trees on the catchment earlier this year and we hope to involve local schools and residents in future tree planting activity.

Planting of trees and shrubs helps with natural flood management and provides an all-year-round food source, and shelter, for a variety of insects and mammals.

“The rain that falls is naturally filtered over many years through the rock to depths of up to 300 feet before making its way to our bottling plant and into bottles in its natural source condition.

“We are incredibly proud of the care and attention we take in bringing our water

to consumers and we know they trust the brand, the purity of our spring water and our heritage. We celebrated our 40 year anniversary recently, and our business journey will continue to have environmental sustainability at its heart, to help us deliver further growth for the brand and business into the future.”

Highland Spring core products have remained the same since the first bottle was produced in 1980 – still and sparkling natural source water. The brand strategy is focused on meeting evolving consumer needs and new consumption occasions.

Brand investment and innovation saw two new Highland Spring products launched into the market in 2021 – flavoured sparkling cans and a 10-litre Hydration Pack which has been recently joined by a new 5L fridge pack. The business will continue to drive forward its longterm strategy to invest in and develop innovative products which provide healthy hydration in an environmentally sustainable way.

Find out More: Consumer: highlandspring.com Corporate: www.highlandspringgroup.com Twitter: @highland_spring LinkedIn: Highland Spring Ltd

Invest in Perth Magazine

15

NET ZERO SPECIAL “But, PH20 is more than just the building.

This investment will also deliver on our vision to support residents and visitors to Perth and Kinross to live healthier and more active lifestyles, supplementing our outstanding outdoor environment with an indoor offer catering to a variety of interests and activities.”

Buildings are a significant culprit of carbon emissions and are accountable for 35% of total global energy consumption.

Passivhaus is a leading international design standard, that promotes slashing energy use from buildings while delivering high standards of comfort and health.

“Adopting these standards throughout the lifespan of the project will help the Council meet its climate change commitment to reduce carbon emissions from public buildings.”

PH20 is Given Green Light Approval for a multimillion-pound sport and leisure centre investment in Perth city centre promises to deliver economic, environmental and community benefits.

P

erth & Kinross Council has approved a significant multi-million-pound investment in PH20, an exciting fitness, sport and leisure venue that will see the local authority partner with Scotland’s oldest leisure trust, Live Active Leisure, to deliver an exemplary new facility as part of the wider regeneration strategy for Perth.

PH20 will be built to Passivhaus standards, representing a major step forward in the area’s contribution to meeting Scotland’s net carbon zero targets by 2045. PH20 will replace two existing venues – Perth Leisure Pool and Dewars Centre – which, although popular, are increasingly showing their age both from a financial and environmental perspective.

The project is scheduled for completion in 2027/28 and is expected to grow the current 400,000 annual visits to existing facilities by around 40%.

It will provide modernised leisure water facilities, as well as a traditional 25-metre pool and training pool, bowling, curling and skating, a health spa, family play facilities, conference support and café.

16

Invest in Perth Magazine

As well as attracting more leisure visitors to Perth city, PH20 will provide a diverse range of health and wellbeing activities for local people and communities across Perth and Kinross.

In addition to growing usage and income, the new venue will be built to energyefficient Passivhaus standards to assist Live Active Leisure to reduce running costs and carbon emissions. The Passivhaus Standard ensures that energy-saving measures are an integral part of the building’s design, so that a high level of comfort can be provided to building users while minimising the energy used for heating and cooling.

Councillor Grant Laing, Leader of Perth & Kinross Council, said: “Buildings and the energy taken to heat and power them are a significant contributor to carbon emissions, responsible for 35% of total global energy consumption.

“We are committed to doing our part to reduce the environmental impact of buildings we are responsible for and getting it right from the beginning with PH20 by building energy efficiency in from the design stage is integral to this.

David Maclehose, Chair of LAL commented: “By creating this new, iconic and vibrant sport and leisure venue, we’re ensuring that we continue to invest in the health and wellbeing of the entire community.

“Not only will PH20 provide a wealth of sport and fitness opportunities, giving everyone the chance to live an active life, but by replacing aging buildings in an environmentally sound way, our collaborative partnership with Perth & Kinross Council will deliver a win for all – community, visitors and the local authority.”

The strategic case for change: Community, Economy, Environment

• These venues deliver key economic, educational, community and health benefits to residents and visitors, but they are at end of life.

• Pre-Covid, Perth Leisure Pool and Dewars Centre attracted over 400,000 annual usages of which 300,000 were Perth and Kinross residents.

• The existing buildings are a major constraint on the Council’s ability to meet the 2030 75% emissions reduction target. They generate over 1.6MKg of carbon emissions pa and cost over £500,000 each year in energy bills, projected to increase to £700,000 in 2022/23.

Scottish Water Horizons Goes Solar in Perth Scottish Water Horizons has completed work on a milestone £2 million solar power scheme in Perth as part of a drive to reach net zero emissions by 2040.

T

he scheme is the company’s largest single solar energy investment to date and is the first to include battery storage facilities in its design, which will enable around 94% of the renewable power generated to be used on site.

More than 2,500 solar panels are now installed on land adjoining Perth’s Waste Water Treatment Works at Sleepless Inch on the River Tay, with a combined generating capacity of just over 1 Megawatt (MW).

It’s the 50th solar scheme to be delivered

by Horizons, a commercial subsidiary of Scottish Water, who are developing a programme of low carbon opportunities to help the utility achieve net zero emissions by 2040.

The green energy generated is expected to provide around a quarter of the electricity needed to treat water that has been used by customers across Perth city.

The battery storage technology allows energy to be stored when the sun is at its peak and then delivered to site when it is most needed, any time of day or night.

This will help to cut the carbon footprint of the works by around 160 tonnes of CO2 per annum – the equivalent of offsetting 580,000 miles from the average passenger car.

The waste water treatment works in Perth is a key site for Scottish Water, serving customers across the city. Being able to maximise the renewable energy generated by storing via battery technology will be an important boost to the value of the investment – ultimately reducing energy costs at the site by around 40% on an ongoing basis.

In addition to the new solar photovoltaic panels, the project included the installation of the utility’s first rapid electric vehicle

The ability to maximise green energy production as well as store and release this energy when we need it is a vital part of our journey to net zero. charging facilities to support the transition of the company’s 1,600-vehicle fleet away from fossil fuels towards clean electricity.

The site is located close to the M90, at a key hub of the transport network.

The project is soon to benefit from collaboration with Strathclyde University to maximise the benefits of the battery system, whilst contributing to renewables skills development.

Scottish Water Horizons Business Development Manager, Donald MacBrayne, said: “We’re excited to have our first battery facility up and running to help reduce emissions and tackle climate change. The ability to maximise green energy production as well as store and release this energy when we need it is a vital part of Scottish Water’s journey to net zero.

Cabinet Secretary for Net Zero, Energy and Transport, Michael Matheson, said: “This is a very welcome project from Scottish Water and marks a real turning point in how renewable energy is incorporated into sites and placed at the heart of powering Scotland’s essential services. At the same time, it can be a part of Perth’s bold ambition to become the most sustainable small city in Europe.”

“By harnessing this technology, we now have a much wider opportunity to install renewables schemes that were previously unviable due to grid constraints. It’s a massive step forward for us and will form an integral part of how we cut our emissions in the coming years. It’s fantastic news for the customers in Perth as they can now benefit from a treatment service with a significantly lower carbon footprint.”

The solar and battery scheme at Perth is part of Scottish Water’s wider investment strategy in the city’s infrastructure to enable the vital delivery of water and waste water services to customers – both now and in the future.

Invest in Perth Magazine

17

NET ZERO SPECIAL

Powering Net Zero from Perth SSE to invest £15bn in Scottish Clean Electricity Infrastructure

Key Projects 2022 - 2025

T

T

he Perth-headquartered electricity infrastructure company, SSE, has announced a £15bn investment in Scotland’s electricity infrastructure system, due to be delivered by 2030. The ambitious project, part of the company’s Net Zero Acceleration Programme, will provide a huge boost to the country’s clean energy ambitions.

The investment update came as part of SSE’s full-year financial results for 2021/22, with the company posting strong performance in volatile market conditions thanks to its integrated business mix and balanced portfolio of electricity assets and infrastructure.

Accounts showed it invested a record £2bn as it delivered the initial stages of its Net Zero Acceleration Programme including in renewables, where SSE is building more offshore wind than anyone on the planet, constructing flagship projects such as its Dogger Bank, Seagreen and Viking windfarms, and in its thermal business, where they continued to progress ground-breaking hydrogen and carbon capture and storage projects.

Alistair Phillips-Davies, Chief Executive of SSE, said: “These results demonstrate the strength of our strategy and highly complementary 18

Invest in Perth Magazine

business mix, the passion and commitment of our people, and our ability to deliver for all our stakeholders as we create thousands of jobs and contribute billions to Scottish GDP. “We’ve already achieved a lot, and we’re only just getting started. Against the backdrop of a global gas crisis, we are investing far more than we are making in profit to deliver clean homegrown energy that will bolster security, cut emissions and make energy more affordable over the long term.”

SSE’s operations stretch from renewables to regulated electricity networks, and include plans to invest in key technologies including new offshore wind, critical network upgrades, carbon capture and storage (CCS), batteries and hydroelectric power.

he company is developing Scotland’s largest and the world’s deepest tethered offshore wind farm, Seagreen, off the coast of Angus; and what will be one of Europe’s most productive onshore wind farms, Viking, on Shetland. Earlier this year it was confirmed the business had secured rights to develop a new giant floating offshore wind farm off the coast of Angus.

The transmission business is currently constructing the electricity cable which will connect Shetland to the UK mainland for the first time in history, securing the islands’ energy supply as well as transporting renewable energy to the national electricity grid.

The recent revision to its ESG commitments will ensure the company keeps pace with the bolder ambitions set out in the Net Zero Acceleration Programme.

It is also developing the multibillionpound Eastern Link “superhighway”, which runs 270 miles under the North Sea from Peterhead and Torness to transport renewable energy to millions across the UK.

The goals will see the company cut carbon intensity by 80%, increase renewable energy output fivefold, enable low-carbon generation and demand, and champion a fair and just energy transition on the journey to net zero.

The company is also developing flexible technologies like pumped storage at Coire Glas in the Highlands, alongside Carbon Capture and Storage (CCS) projects at places like Peterhead.

Creating Scottish Growth

A

s a significant global player, SSE was the principal partner to COP26 in Glasgow and the first company globally to release a Just Transition Strategy . They are currently building more offshore wind than anyone else in the world and are leading the way on exporting Scottish capability internationally to USA, Japan, and the EU. Assuming a continued supportive policy environment, the Group’s current investment plans will see it progress further, realising its growth opportunities and accelerating the transition to net zero, with Scotland making up the largest proportion of that.

The investment in Scotland equates to almost £3,000 per head of population and independent analysis by PWC found the business contributed £2bn to Scottish GDP, supporting more than 11,000 jobs.

Importantly, the jobs being created now are predominantly highly skilled, long-term jobs aligned to the net zero transition. The company is on target to deliver around 1,000 new jobs a year for the next three years.

Net Zero, Energy and Trasnport Secretary, Michael Matheson, said: “Our abundant natural resources, expertise and proven track record in decarbonisation make Scotland perfectly placed to become a global powerhouse of renewable energy – as clearly evidenced by the significant investment plan from SSE. “The coming decade will be truly transformative for our energy sector – delivering further good, green jobs and benefits for communities, and I welcome SSE’s firm commitment to playing an important role in our just transition to net zero.”

Investing in Scotland • Berwick Bank potentially the world’s largest offshore wind farm off the East Lothian coast • Multibillion-pound networks investment to connect Scottish renewables exports, enable EVs & heat decarbonisation • Viking the UK’s largest onshore wind farm by output

• Seagreen Scotland’s largest and the world’s deepest offshore wind farm • Nigg Towers Facility £15m investment in GEG wind tower manufacturing facility in the Highlands to grow local supply chain • Peterhead CCS potentially one of the world’s first power stations equipped with carbon capture technology

SSE’s footprint in Perth

H

ome to their Corporate Headquarters and main training centre, Perth remains at the heart of SSE’s growth plans with 2,000 of their 5,000 Scottish staff based in the area.

As well as their Head Office, SSE owns several sites in Perthshire, including their renowned hydro stations in Pitlochry and Clunie, Griffin Onshore Wind Farm, and National Training Centre in the Inveralmond industrial estate.

The company is currently repurposing several floors within their Perth Campus which were recently vacated by OVO, to accommodate expansion of their Transmission business.

Gregor Alexander, Finance Director at SSE, said: “We have been headquartered in Perth since our inception and our newly expanded office is now home to around 2,000 employees from almost every function of our business. With SSEN’s networks control rooms, our renewables control room and SSE’s trading floor all located here, it is fair to say that Perth is the beating heart of Scotland’s energy system.

“Its central location, transport links and proximity to each of Scotland’s other major cities is what makes Perth the ideal home for SSE. Perth is also home to a diverse and supportive community of businesses, connected by a shared ambition to see the city become one of the most sustainable small cities in Europe.”

Invest in Perth Magazine

19

TOURISM

Building International Demand :

The Tay Cities Regional Tourism Partnership

T

he Tay Cities Regional Tourism Partnership was set up in 2018 in order to fully exploit the potential of crosspromotion for domestic and international tourism within the area.

Comprising four local authorities, Scottish Enterprise and VisitScotland and covering destination marketing opportunities for the key tourism hotspots in Perthshire, Angus, Dundee, and Fife, the regional tourism partnership has a primary aim to grow the value of overnight stays across Tay Country by 3% year-on-year, up to £550m in 2024.

The initial strategy was tied to the Tay Cities Growth Deal, which focused initially on linking up region-wide opportunities presented on the V&A Dundee opening.

Following this, it has gone on to manage further growth projects such as the refurbishment of Perth City Hall where the Stone of Scone will be exhibited from 2024.

Caroline Warburton, Regional Leadership Director (East), VisitScotland, commented: “The tourism partnership across the Tay Cities Region has proved to be a great success and an integral part of the wider 20

Invest in Perth Magazine

Tay cities region strategic alliance.

“Working together as a region enables common challenges to be addressed such as connectivity, accessibility, seasonality and geographical spread. Furthermore,

The partnership’s primary aim is to grow the value of overnight stays to £550m by 2024. there is a desire to improve the all-round experience for visitors across the region.”

As with all destination marketing organisations, the partnership has faced a difficult period. The international leisure market all but disappeared over the period 2020 and 2021, and although the area became a popular choice for the domestic market, it was nevertheless crucial to

ensure the region was positioned as a firstchoice destination as restrictions eased to visitors from international markets.

The International Action Plan for the Tay Cities Region was developed in mid-2021, and since then the partnership has been delivering on the actions identified, with early indications showing signs of recovery.

While it is true that consumers are increasingly likely to organise and plan their own trips directly, the international market – particularly long haul – remains more inclined to book via intermediaries within the travel trade.

Travel agents, tour operators, tour guides, group travel organisers and holiday wholesalers are therefore extremely effective in reaching large numbers of potential travellers across several international markets. Not only can the travel trade assist in opening up new markets, it can also encourage higher spend per head by showcasing the offer in advance.

For this reason, a key priority within the

International Action Plan for the Tay City Region has been to build on Travel Trade engagement, primarily through attendance at travel trade shows.

This has resulted in the development of an extensive travel trade database which will be used moving forward in inbound campaigns and proactive, direct marketing.

In forging these strong and continuous links, the aim is to ensure that the Tay Cities Region features in more agents’ itineraries, offers local tourism businesses an effective route to market and provides the international travel trade with the tools it requires to sell the Tay Cities Region as a first-choice destination when considering the UK as a trip.

Throughout 2021-22 there has been extensive business engagement at multiple trade events, both in person and virtual, including opportunities to promote Perthshire in context within wider Scotland, and the UK. In preparation for these shows, the partnership also developed extensive resources and sales assets to assist the trade in selling our destination including travel trade inspirational itineraries to encourage movement across the region, new videos, accommodation lists, website development and a product list of what’s new in the region.

The partnership was awarded £56,000 through the VisitScotland administered scheme, the Destination & Sector Marketing Award, to develop new sales assets that would assist in building their relationship within the travel trade, allowing them to further promote the destination.

• • • • • • • • •

Inspirational Itineraries Video Itineraries Image Bank STC Style Guide and Logo Pack Travel Trade Database Content Audit Improved Content Library Website Development Youtube Channel

Additionally, the partnership entered a paid partnership with Loganair targeting inbound flights from London City and Belfast.

Royal National Mòd

I

n 2013 Perth and Kinross Council adopted an Events & Festivals Strategy that cited ambitious plans to grow the leisure tourism market and the economic contribution large-scale events made to the area.

Canada and Australia. Evidence from the 2019 Royal National Mòd in Glasgow demonstrated that audience is mainly comprised of competitors, and their family and friends, and that the average length of stay of visitors is 4.3 nights.

As part of this strategy, in 2017 the Council successfully secured the opportunity to host the Royal National Mòd, which following Covid-related delays, will now take place from the 14th - 22nd October 2022.

The digital aspect of the Mòd which allows participants to enter competitions online has been increasingly popular in recent years, allowing for greater engagement with participants and audiences worldwide.

This gives Perth and Kinross additional opportunity to engage with a global audience.

Organised by An Comunn Gàidhealach, the Royal National Mòd (known as The Mòd) is an eight-day festival celebrating Gaelic language and culture.

This will be the first time the city has hosted the event since 2004. Since then, Perth Concert Hall has opened, Perth Theatre has been completely refurbished and there is an amazing new outdoor performance space at St Paul’s. Add to this the plethora of live music venues throughout the city, and it is clear that Perth is well positioned to throw an unforgettable event.

The Mòd attracts a varied and international array of competitors and visitors from throughout the UK, Ireland, Europe, USA,

There are over 200 competitions throughout the event ranging from traditional instruments like accordion, fiddle and piping, to solo Gaelic singing, storytelling, poetry, sport and choir competitions.

Perth & Kinross Council will be working with An Comunn Gàidhealach and the local business sector in and around Perth to make the most of this exciting festival in the lead up to the event.

Opportunities for business can be found in the editorial section of: perthambassadors.co.uk Invest in Perth Magazine

21

PROPERTY

Property in Perth

Commercial and Industrial Property

Keith Scobbie at Graham + Sibbald

U

nsurprisingly, the industrial market in Perth has been the most buoyant, mirroring the national trend. The market has undoubtedly benefited from a Covid bounce and both tenant and purchaser demand has been as strong as I can remember.

Standout performers have been small units sub 3,000 sq ft where rents have moved from historically low levels of £4 to £5 per sq ft towards £7.50 per sq ft.

Traditionally, Perthshire’s owner-occupier market has always been strong, fuelled by a combination of a high concentration of SMEs operating in Perthshire, a constrained supply and ever-popular investment appeal of holding property in SIPPs, SSASs and other similar investment vehicles.

Keith Scobbie from Graham + Sibbald offers an update on the property market in Perth and the wider region, including current investment opportunities.

Demand continues to outstrip supply as evidenced by the number of competing parties prepared to offer for modern, welllocated stock. This potential for growth in value has not gone unnoticed amongst investors, with industrial yields now as low as 6 to 6.5% for a quality, multi-let portfolio.

As a result, speculative build has started to look attractive despite increasing construction costs. Such examples of this include a recent development by Castlecroft at Riverview Business Estate for 11 units and another by Algo Ltd at Inveralmond, to the north of the city where a 36,700 sqft development will comprise nine units to lease and an additional two larger presold units for owner occupation.

In addition to this, further land holdings acquired in recent years at Inveralmond Industrial Estate, covering some 35-plus acres, also look set to add additional stock to the market in the medium term, details of which remain to be announced.

The city’s continued expansion in the medium to long term remains very much focused on the western periphery with 25 hectares of commercial land being brought forward via the Perth West development.

The Eco Innovation Park is set to be an exemplary public-private partnership that will bring multiple investment opportunities over the next five years.

Kinross West, Site 1

Arran Road, Perth

• • • • •

• • • • •

22

For Sale. Offers Invited.

0.91 acres (0.36 hectares) or thereby Serviced plot Excellent strategic location Visible from M90

Invest in Perth Magazine

From 464.5 sq.m to 7,432 sq.m Design and Build Packages Class 4 - Business Class 5 - General industry Class 6 - Storage and distribution

Office and Retail Property

T

he office and retail sectors remain challenging and are likely to remain so for the foreseeable future. However, such challenges also offer opportunities to repurpose buildings with limited occupier demand offering scope for alternative uses such as a blend of residential, leisure and recreation.

Although accelerated by Covid, this trend was evident well before Spring 2020 where office occupiers had already shown a preference to move away from traditional period-style space to more modern offerings at Perth’s purpose-built business parks, such as those at Whitefriars and Broxden.

The appeal of modern, energy-efficient buildings with parking and increased space efficiencies is evident across the board.

As such, demand for both medium-sized, self-contained suites, and smaller, serviced offices within business centres will continue as occupiers seek flexible accommodation, and place increased importance on the quality of their working environment.

This will likely widen the value gap between modern and older stock with rental growth for newer, quality offices remaining positive.

However, it is not all bad news for older, city centre stock. Most of these buildings are attractive Georgian or Victorian townhouses, easily capable of residential conversion to their original use.

The recent shift in values has led to an encouraging number of new sales And with many lying close to the parklands of North and South Inch, and a host of leisure and recreational activities nearby, these offer great potential. Perth, like all commercial centres countrywide, has suffered from the demise and closure of a number of national retailers, leaving a handful of vacant larger floorplates in prime trading positions.

With downwards pressure on High Street values and rents a nationwide concern long before the onset of Covid, retail is the sector most focused on the impact of the 2023 rates revaluation. Particularly pertinent is how this could positively assist retailers in reducing their occupational costs.

Outwith the prime High Street stretch there are some positive signs thanks to Perth’s strength in the independent retail sector.

The recent shift in values has led to an encouraging number of new sales and lettings in good secondary trading locations such as Scott Street, South Street and the peripheral High Street.

This has been fuelled in part by owneroccupiers, and in some instances the relocation of long-established businesses to preferable trading locations.

This has given much-needed stability to these areas and looks set to continue.

Highland House, Perth

Caledonian House, Perth

• • • • •

• • • • •

For Sale. Offers over £950,000 City centre location, adjacent to Retail Park Long-standing commercial tenants Passing rent £155,999 Net Inital Yield 15.55%

To Let Located at a busy interchange Quality open plan office accommodation Suites available from 2,500 sq ft Close to city centre

Invest in Perth Magazine

23

PROPERTY

Licensed Trade, Hotel and Leisure

P

erth and the wider region is a popular tourism destination and with Perthshire hotel market’s largely leisure-led profile, the area has benefitted from the sector’s postCovid resurgence; international travellers are now returning, and the domestic market remains strong.

The high-end leisure sector in particular has seen a strong rebound with wealthy travellers the quickest to return to travel.

Room rates have held up well, with this market willing to pay a premium price for a luxurious experience. This trend is expected to continue throughout the year.

Some operators in Perth and the surrounding areas are indicating that 2022’s operational performances are now back to the preCovid levels of 2018 and 2019, with many exceeding those figures.

International travellers are now returning, and the domestic market remains strong.

This has renewed optimism that 2023 may see a significant uplift in top-line sales and encouragingly, there are indications that investment into the hotel sector is now returning.

Trends have shown that acquisitions by overseas investors, UK-based hotel companies, private buyer operators and first-time buyers tend to have been in localities classed as destinations, such as Perth and Perthshire.

This is supported by the recent sale of the Queens Hotel in Perth city centre, as well as a number of smaller hotels in the Perthshire locale – a clear sign that a range of buyers are expressing confidence.

In addition to this, high-end properties such as Dunkeld House Hotel, Fonab Castle Hotel, Taymouth Castle, and Kenmore Hotel have all been purchased by international investors, keen to ensure they are capitalising on the appeal of Perthshire to the global tourist.

24

Invest in Perth Magazine

Royal George Hotel, Perth • • • • •

For Sale. Offers over £2,750,000 (Freehold) Historic 46-Bedroom City Hotel T/O c.£1.5million (net) Close to major attractions Bar, restaurant, function rooms

Residential Property

P

erth city and the wider Perthshire region has always been considered as one of Scotland’s most desirable places to live and in this new age of hybrid-working it is proving to be particularly appealing.

Continued investment in the rural broadband network has bolstered this and combined with breathtaking countryside and an unrivalled feeling of space and wellbeing, Perthshire has become a haven for remote working.

In addition, the accessibility of road networks and ready access to Scotland’s airports – Edinburgh, Glasgow and Dundee can all be reached within an hour – places Perth firmly at the top of the location hotspots.

Across all price bands demand continues to outstrip supply; first-time buyer flats and houses, middle-market family homes and larger country-style properties are all faring well.

With that said, inflationary pressures, combined with increasing interest rates, will likely lead to a quietening of the market. This could potentially come this year and into next, but in Perthshire is unlikely to throw up any significant shifts in market sentiment.

Perth’s defining USP when it comes to the residential market must be the proximity of some of Scotland’s finest properties to the surrounding Perthshire countryside.

Such houses offer a high standard of living, provide acres of open space and private land, and have drawn a focus from buyers across the country as well as international markets.

In this new age of hybrid-working Perthshire is proving to be particularly appealing.

This country house market has come to life post-lockdown with strong year-on-year growth, and levels of market activity not seen for 15 years; and yet, such properties remain exceptional value in comparison to similar properties in Edinburgh and Glasgow.

Perth and its immediate environs have seen considerable residential expansion of late, most notably at Bertha Park, on the city’s northern periphery which is four years into a 15 to 20-year development programme master-planned for 3,000-plus houses.

To the west of the city a combined landmass of similar scale, offering potential for both residential and commercial development, is also now underway. The first phase of this is the long-awaited Almond Valley Development which could see work commence on some 350 houses as early as the middle of 2023. This follows a successful closing date, with the sale of this land attracting multiple bidders, comprising a variety of national housebuilders, all keen to have representation in the city.

Developments of this scale are being made possible by the Cross Tay Link Road due for completion in 2025 (for further details on this project please see page 11).

By opening up large swathes of ground to the north of the city, this multimillion-pound development will facilitate unprecedented potential for future expansion of the city and the wider region.

Invest in Perth Magazine

25

© Fraser Band

WHY CHOOSE PERTH?

Caroline Haxton : What Perth Means to Me

Caroline Haxton of Scotia Cabins talks farm diversification, business growth through lockdown and why she chose Perth as her home.

C

aroline Haxton is the co-founder of Scotia Cabins, suppyling businesses and residential clients with a wide range of quality BBQ cabins and garden studios. Based on the family’s third-generation working farm in Abernethy, it was a chance meeting with Nottingham-based Arctic Cabins that led to the launch of their unusual farm diversification business in 2015.

Since then, the business has gone from strength to strength; the initial team of three is now fifteen strong, and the company boasts a Scotland-wide customer base. Caroline, who started her career as a primary school teacher, moved to Perthshire from Orkney and is now one of a group of senior business leaders collectively working as Perth Ambassadors.

What influenced your farm diversification?

We were looking for an idea that would work well on the farm, with two small children and several hundred animals, and that would allow us to build a successful, independent business.

We also really liked the idea of supplying a great quality, UK-made product to people.

Comfort, longevity, style and fun is what we are aiming to achieve for our customers, which is a happy business to be in.

We’re now a team of 15, made up of a pool of installers to help us deliver the best possible service. It allows us to remain flexible for our customers and works really well for everyone involved.

How has the business grown in the seven years since you launched?

How has being based in Perthshire helped your business growth?

Generally speaking, the demand overall for the type of products we sell has increased. A garden cabin is an easy, cost-efficient way to expand the space in your home without having to move. We saw steady growth over the first four years but over 2019, sales had taken a dip.

Craig always said that with a Scottish base in Perth we were never far from anywhere.

That was also a big selling point for Gareth from Arctic, who could see we were no more than two hours from much of the Scottish population.

Since the end of 2020, sales have shown no signs of stopping!

People think nothing of coming to the farm to view our range – in fact many make a daytrip to visit, and we’re constantly hearing how lucky we are to live in the beautiful Perthshire countryside. The result is increased sales; when customers can see the product up close, they’re more likely to buy.

We had a chance meeting with Arctic Cabins who had a similar partnership agreement with chicken farmers in Cornwall so they knew the model worked, and had sorted out the initial teething problems.

However, it was lockdown that really saw a shift in business. From the day following the announcement, our phone didn’t stop. We couldn’t get out and build, but we booked in orders and we were incredibly busy once we started to install again. And since the end of 2020, there have been no signs of stopping!

Once we started researching the size of the opportunity, it made real sense. We could see other farms adding cabins for holiday lets, but decided we’d rather supply them. And in terms of a skills base, it suited us perfectly; I had worked as a primary school teacher for many years and so I’m ruthlessly organised!

As you’d expect, garden studios have been extremely popular as more people have switched to a hybrid model of working from home, but it was the BBQ cabins that really took off. If you’re stuck at home in Scotland, you want to be able to BBQ regardless of the weather!

26

Invest in Perth Magazine

scotiacabins.co.uk

Why did you choose Perth?

I was working in Denmark when I met Craig, and I met him on a night out in Perth - and farms don’t move! And so I’m here by default really, but it has become my home. I’m originally from Orkney and a sense of community is really important to me. When we had the kids I wanted them to be proud of where they’re from, to know the people around them and to feel part of something. You can do that here.

So while the business thrives, and connects us to the whole of Scotland, the kids can grow up connected to their community.

Prime Retail Unit 52 - 62 High Street, Perth

TO LET / MAY SELL

With Planning for Restaurant and Leisure Use Secured

Potential to be sub-divided

Opportunity to secure a prime retail opportunity on Perth’s High Street

VIEWING & FURTHER INFO

•

Comprising a double retail unit with extensive frontage arranged over the ground floor - Ground Floor (4231 sq ft) and the First Floor (4098 sq ft).

Viewing and further information by appointment through the sole letting agent:

•

The premises benefit from rear servicing.

•

Planning has been secured to sub-divide the premises into three separate units

Andrew Britton andrew@culverwell.co.uk 0141 275 3306

•

Planning for Restaurant (Class 3) and Leisure (Class 11) is also secured

Euan Roger euan@culverwell.co.uk 0131 243 9617 / 07789 647 068

www.culverwell.co.uk Invest in Perth Magazine

27

Join Perth Ambassadors

The Perth Ambassadors programme is now open for applications from senior business leaders and key decision makers working within Perth and the wider region.

Find Out More:

perthambassadors.co.uk