Building Briefs – August 9th

Stabilisation of Mackintosh Building takes another step forward

Last week saw another step towards full stabilisation of the east gable of the Mackintosh Building as work began to install the shoring scaffolding.

A team from SGB have been on site since Thursday 2 August and will work seven days a week to ensure that this necessary part of the stabilisation work is completed as soon as possible. This part of the work is currently scheduled for completion by 21 August.

Work is now being undertaken by GSA contractor, Reigart, on all areas of the building following commencement of the necessary safety works on the O2 ABC, which were commissioned by Glasgow City Council following issue of a Section 29 notice. The focus remains on the east gable and south façade, but work has also begun in earnest on the west end of the building.

The main steel roof beams to the west of the north elevation have now been removed and work to cut away and dismantle the existing scaffold to the north and west elevations is underway. The hoarding and cabins which were in front of the north elevation on Renfrew Street have been removed, and the site has been cleared in readiness for the erection of new scaffolding.

The scheme for bracing to the wall heads for north façade, and centre and east sections of the south facade are being developed. These are expected to be finalised this week.

As the majority of the work being done continues in the areas of the building which we most affected in the fire much of the masonry was judged too damaged to keep, and was therefore moved safely into the building. Some pieces were retained and removed from the building in preparation for storage off site.

Rents to continue to rise as supply of new property drops again

The continued reduction of new rented property across Scotland could see rents increase 15% by 2023, according to a survey by the Royal Institution of Chartered Surveyors (RICS).

A net balance of 10% more survey respondents said the number of new properties coming on to the Scottish market in the lettings sector has fallen rather than increased in the three months ending July 2018.

This is the tenth consecutive quarter in which this indicator has recorded a negative number in Scotland.

RICS said the drop in landlord instructions is resulting in smaller scale landlords exiting the sector and blamed the shift in the Buy to Let market in the wake of tax changes which are still in the process of being implemented.

The number of tenants looking for a new home in Scotland increased during Q2 2018, with a net balance of 27% more chartered surveyors reporting a rise in tenant demand.

One consequence of this imbalance is that expectations for rising rents for consumers, appear to be strengthening again, RICS added.

2018 hotel investment in Scotland doubles 2017 annual total in six month

Investment into Scottish hotels in the first half of 2018 reached £389.67 million, according to international real estate advisor Savills, doubling the total annual investment volumes recorded in 2017 (£195m).

Investment was spread across 10 individual transactions and components of seven portfolios. Savills says the 10 individual sales that occurred in the region were principally focused in the £1-10m price bracket, with the Caledonian Waldorf Astoria Hotel in Edinburgh being the only transaction above this bracket, achieving a sale price of £85m. 67% of investment value was accounted for in the region by portfolios.

UK buyers were the biggest buying group, accounting for 41% of activity, followed by Middle Eastern investors (22% of transactional volume), Israeli investors (16%), US investors (8%), Canadian Investors (7%), Singaporean investors (5%) and German investors (1%). Collectively non-domestic investors continue to be the dominant player in the market.

Looking at the UK as a whole, Savills research shows a total of £3.2 billion has been invested into hotels in the first six months of the year, with Scotland accounting for 13% of investment in terms of value.

Edinburgh office investment market outperforms other UK regions

New research has revealed movement in Edinburgh accounted for just under a quarter of all office investment activity in the UK regions from April-June this year.

The latest Big Nine report from GVA shows that, from a total of £500m invested across regional cities, Edinburgh attracted £124m, the highest volume outside of London.

Activity in the city was bolstered by the two largest deals of the quarter outside London, which saw MAS Real Estate purchase New Uberior House for £71 million and Chris Stewart Group sell The Mint Building to Hines for £53m.

Pricing on The Mint reached £800 per sq. ft., a record for the city and reflective of the scarcity of quality stock in the market.

The lack of development and supply is pressuring yields. Prime city centre yields in Edinburgh have sharpened to 4.75% from 5% in the previous quarter, though this is still in line with peak levels in 2007. Investment volumes in the capital are more than double the ten-year quarterly average of £59m.

Significant deals are in the pipeline for Edinburgh in the next quarter, with 40 Torphichen Street and Blenheim House both under offer totalling c. £50m in value. With an anticipated strong final quarter, it is likely that total Investment volumes could reach in excess of £350m.

£2.2m Dirtpot Corner road improvement scheme begins

A £2.2million major road safety scheme to improve Dirtpot Corner near Peebles gets underway this month.

The project begins on Monday 13 August and will improve the safety of the narrow stretch of the A72 road between Innerleithen and Peebles.

This section of the road has seen a number of accidents, but the project will provide significant extra road width, an improved road surface and the addition of modern road safety fencing and parapet.

A key aspect of the scheme is that much of the construction work will be undertaken below the road on the river bank area. This was considered the best option as it reduces the environmental impact and cost of the project and minimises the impact on traffic on the road.

During the works, Dirtpot Corner will see a 30mph speed limit introduced, with temporary traffic lights used at certain stages throughout the scheme.

A short-term closure is only likely to be required during the closing stages of the project, which is due to last a total of around 10 months and be completed in early summer 2019.

Housebuilder unveils new Fraserburgh plan to help first-time buyers

Aberdeenshire housebuilder Castle Homes has completed the build of five houses in Fraserburgh as it looks to help first-time buyers get on the property ladder.

The £500k development has been funded by a £336k development facility from Bank of Scotland, together with the developer’s own capital.

The Castle Street Court development has been built on a brownfield site, previously a local brewery and public house. The public house, considered to be the first in Scotland, has already been renovated and forms an additional property on the site.

The five three-bed townhouses cost in the range of £140k, with buyers looking to take advantage of the Scottish Government’s Low-cost Initiative for First Time Buyers (LIFT) which helps households access home ownership by providing a percentage of the equity.

Castle Homes was established over 12 years ago in the North East. Over the years the business has been involved in a wide range of building projects, both domestic and commercial, with Castle Street Court being the first new development it has undertaken.

Highland Council tenant welcomed into her new home

Councillor Trish Robertson joined staff from Highland Council’s Inverness housing management and development teams to pay a house warming visit this week to wish a tenant all the best in her new home at Kirk Brae.

Kyrena MacKay’s home, which she shares with her son, is one of 27 new 2 and 1 bedroom flats built on a gap site above the Smithton and Culloden Free Church.

The development, commissioned by Highland Council’s development and infrastructure service, was designed by Bracewell Stirling and local company Compass Building and Construction carried out the construction works which started on site in March last year.

A total of 21 of the properties are for rent and 6 are for the low-cost initiative for first time buyers (LIFT).

The £3,239,804 project has received £1,384,426 grant funding from the Scottish Government, with the remaining money coming from Highland Council.

The homes are well insulated and have gas combi boilers which provide instant hot water and heating. There are also photo-voltaic panels on the roof which generate electricity to keep the tenants’ fuel costs low.

Views sought on Kirkcaldy development plan

Fife Council is calling for local people to become involved in the creation of a development plan for the Kirkcaldy area.

A consultation is open to everyone in the area, covering Kinghorn, Burntisland and Auchtertool, and runs until the end of August.

A form can be picked up from any community centre or library or accessed online via a questionnaire.

All views gathered will help develop a new plan for the area and a report on progress will be discussed at a meeting of the Kirkcaldy Area Committee in October.

Bridge works to begin at Newhall

Bridge works are due to commence at Newhall, on The Black Isle, later this week, 11 August.

The works will be in place to allow the temporary bridge to be replaced by a permanent structure.

The Highland Council has also announced a temporary road closure for all road users, including pedestrians.

The road will be closed on 10 August at midnight and is expected to re-open at midnight on 19 August.

Alternative routes will be signposted during the works.

Funding secured for new electric vehicle charging hub in Stirling

Funding of £2.2 million has been secured to build a new electric vehicle charging hub at Castleview Park and Ride in Stirling.

The innovative Green Energy Transport Hub will use solar canopies covering 360 car parking bays to generate and store energy for the smart charging of 22 electric vehicles and e-bikes.

Stirling’s hub is one of nine initiatives nationwide to receive Transport Scotland funding.

The project will receive a £1.4m grant from Transport Scotland as part of the European Regional Development Fund (ERDF) Low Carbon Travel and Transport Challenge Fund. The remainder of the money will come from Stirling Council’s budget.

Scotland is to ban the sale of new petrol and diesel cars by 2032 – eight years ahead of the rest of the UK.

The Scottish Government is committed to phasing out petrol and diesel cars by 2032 and plans to turn the 269-mile A9 into Scotland’s first fully electric-enabled highway.

Grants of up to £4,500 alongside interest-free loans are now available to encourage motorists to switch to electric.