Building Briefs – November 8th

Edinburgh-based property investment specialist SRA Ventures has secured a fresh acquisition deal for the well-known Shapes auction house in Sighthill which could now be transformed into a variety of commercial uses.

Owned by Scots entrepreneur Shaf Rasul, SRA purchased the sprawling 37,458 square foot industrial unit in the capital’s Bankhead Medway for £1.25million.

The property will be available to let or for sale from January and SRA expects it to command strong market interest, thanks to a variety of consents being in place which could allow conversion to a supermarket, restaurant, or return to full industrial usage.

The investment company believes that there remains a shortage of industrial stock of this scale in Edinburgh for large-scale users.

Shapes Auctioneers will vacate the property at the end of December when owner Ally Black is expected to retire after a 40 year career.

Glasgow office investment set for record year

Investment in Glasgow offices has exceeded levels last seen a decade ago and could be in line for its best-ever year, according to analysis from Knight Frank.

The independent property consultancy said that the recent sales of HFD Group’s 122 Waterloo Street, which Knight Frank advised on, and St Vincent Plaza took investment in the first ten months of the year to more than £422 million – close to the 2007 total of £428m. With another £183m under offer, total investment could breach the £600m mark by the end of 2017.

The previous best performing year was 2006, when investment in Glasgow offices reached £485m – records are only available dating back to 1999. The ten-year average is £206m.

Investment has been buoyed in 2017 by the sale of a number of Glasgow’s prime Grade A assets, including Wirefox Investment’s purchase of the Capella Building for £43.5m in September and the £28m deal for the Cuprum Building in January.

In the first half of the year, overseas investors accounted for 41% of activity, while private buyers and UK institutions represented 33% and 26% of investment respectively.

SSE confirms Npower merger amid 8% fall in profits

Energy firm SSE, the UK’s second-largest energy supplier, has today confirmed it has agreed the first steps of a proposed merger with Npower to form a new UK gas and electricity business.

The FTSE 100-listed firm said yesterday that it was in talks with its rival, owned by Germany’s Innogy, as it reported a big fall in its adjusted pre-tax profits of 13.9% in the six months to September.

In a statement to the London Stock Exchange this morning, SSE said it has entered into an agreement with Innogy “in respect of a proposed demerger of SSE’s household energy and services business in Great Britain and combination with Innogy’s subsidiary Npower Group”.

SSE said the new firm was expected “to deliver enhanced value” and that savings in costs and combined IT platforms would “ultimately enable the company to be an efficient competitor in its markets”.

SSE’s shareholders will hold 65.6% of the new company, with Innogy, which owns Npower, holding the rest.

Innogy will also receive a break fee of £60m if SSE’s shareholders fail to approve the deal by 31 July 2018.

Meanwhile, SSE today unveiled an 8% drop in annual operating profit during the six months to 30 September, from £637.2m to £586.2m, and a 13.9% reduction in pre-tax profit, to £409.6m from £475.8m.

Portakabin achieves BIM Level 2 certification

Modular building provider Portakabin has been officially recognised by British Standards Institution (BSI) for its capability to work to Building Information Modelling (BIM) Level 2 as a tier 1 designer/contractor in accordance with PAS1192-2.

Prevalent in architecture, engineering and manufacturing industries, BIM is a collaborative way of working through digital technology which provides more efficient methods to design, deliver and maintain constructions throughout their lifecycle.

The UK government Construction Strategy, published in 2011, outlined the target of reducing the cost and carbon burden of public sector construction by up to 20%. To achieve this, BIM Level 2 is required on all centrally procured public sector projects; including those in the healthcare and education sectors.

Building on the government’s guidance, Portakabin has subsequently developed digital policies and protocols in line with the BIM mandate’s generic requirements for collaborative 3D modelling and related information management processes.

Abbie begins Modern Apprenticeship with Morrison Construction

There have been two significant milestones for Abbie Mathieson this past month, she has turned 17 and officially begun her Modern Apprenticeship with Morrison Construction on site at the £26 million Campbeltown Grammar School project.

A former student of the current Campbeltown Grammar School, Abbie first stepped onto site as an employee three months ago.

Since then she has worked with her mentor, Morrison Construction administrator Daniel Fee, before officially beginning her Modern Apprenticeship Level 2 Business and Administration this month.

Abbie will complete training through Argyll College, University of the Highlands and Islands (UHI) in Campbeltown, as part of her Modern Apprenticeship. A lecturer from the college will offer support to Abbie throughout her course and will visit the site every eight weeks.

Minister joins students to restore historic weir in Falkirk

Minister for employability and training, Jamie Hepburn MSP, joined students on a pioneering skills development programme at the start of a new project to repair a historic weir on the Union Canal.

The Minister joined in with some traditional lime mortaring work to help get the repair project on the 200-year-old structure in Falkirk started.

The project is part of canal college, Scottish Waterways Trust’s work experience and employability programme for 16-30 year olds based on the Forth & Clyde, Caledonian and Union canals.

Work on the project will count towards the students gaining an SQA Level 2 Cultural Heritage Award among other qualifications. canal college is the only programme in the country offering people the opportunity to work towards the Cultural Heritage Award.

Glen Weir, built in the 1800’s, helps to remove surplus water from the canal at times of heavy rain, preventing flooding and erosion of the canal banks.

Over the coming months, young people will repair the weir through a range of activities from vegetation clearance through to lime-mortaring and stonework.

Using traditional skills to cut and fit stone, canal college will make repairs to gaps in the cobblestones lining the weir, removing any loose materials.

Over the next three years 360 students will carry out similar heritage projects to enhance and safeguard Scotland’s canal heritage while learning new skills.

Works underway at Kingussie Flood Alleviation Channel

The Highland Council and Pitmain Estate have announced that the final phase of the work to construct the Kingussie Flood Alleviation Channel is now underway.

The jointly-funded project is located on the estate’s land above the village of Kingussie.

McGowan Ltd of Aviemore carried out phase 1 of the construction in June and July. This phase saw the formation of a section of the diversion channel between the Allt Mor and Loch Gynack.

The contractors are now back on site for phase 2, which includes the construction of the main offtake weir on the Allt Mor. This will direct a proportion of the flow from the main river, via the diversion channel, into Loch Gynack where it will then be released at a controlled rate back into the River Gynack.

Although weather dependent, the work programme is expected to be complete, and the scheme in operation, in five to seven weeks.

£2m regeneration of Inveraray buildings complete

The Conservation Area Regeneration Scheme (CARS) building work, which has breathed new life into the Loch Fyne town of Inveraray, is now complete.

Arkland, the fifth priority building in the town joins the Town House, Chamberlain’s House, the Old Temperance Hotel and Relief Land, in being painstakingly restored to its former glory.

The work which has transformed the appearance of the buildings included repairs to chimneys, slating and leadwork. The materials used will make the buildings drier and warmer and increased their appeal as useable properties.

The conservation of the priority buildings was made possible by an Argyll and Bute Council contribution of £350,000 and £970,000 CARS funding awarded by Historic Environment Scotland (HES). The total budget, which included contributions from the owners, Argyll Community Housing Association and private sector housing grant, was over £2 million.

In addition to the building work, the council CARS team facilitated skills training events for local contractors, which helped them secure work through the various projects.

The Inveraray CARS scheme will continue until March 2018, with the focus now being on supporting community engagement initiatives.