Building Briefs – October 25th

Moorfield Group and Glasgow-based joint venture partner Resonance Capital have announced that Atlantic Quay 3 is now fully let on a long term lease to the Scottish Courts and Tribunals Service, on completion of a multi-million pound refurbishment of the Building.

Completion of the deal on Atlantic Quay 3, will see the Scottish Courts and Tribunals Service fully occupy 79,500 sq. ft. of ‘Grade A’ open plan flexible office space over its ground and six upper floors.

Moorfield Real Estate Fund III purchased Buildings 1, 2 and 3 Atlantic Quay in September 2015 and a comprehensive refurbishment programme to revitalise the scheme will complete in 2018.

Atlantic Quay 3 features a new double-height reception; new VRF air conditioning system throughout to 1:8 design ratio; 2.7m clear from floor to ceiling; new LED lighting throughout; three 13 person lifts with a separate goods lift and new refurbished finishes to all lift lobbies.

The building also benefits from 24 hour security, 31 secure car parking spaces and 100 secure cycle racks in the basement.

A comprehensive refurbishment of Glasgow’s Atlantic Quay Buildings 1, 2 and 3, will create a contemporary business destination on the City’s waterfront, The overall design influence of the scheme is inspired by the colour palette of the Nordic countries. A bespoke art collection by the award winning photographer Damian Shields will feature Nordic and Scottish artwork in the public areas of Atlantic Quay 1, to be unveiled on completion in 2018.

Elevations due to start at 2 Semple Street in Edinburgh

The delivery of the only speculative office development in Edinburgh which is due to complete next year should help alleviate the capital’s chronic shortage of Grade A office accommodation, according to its developers.

GSS Developments said 2 Semple Street, located in the city’s Exchange District, has the framework in place and work on installing the elevations will start in the next few weeks, with a final completion date scheduled for July 2018.

Other office projects which are about to start or are underway in Edinburgh are expected to have 2019 and 2020 completion dates, while 2 Semple Street will be the only speculative development to be ready for occupation in 2018.

To be delivered by McLaughlin & Harvey, the 38,648 sq ft office development will accommodate up to 400 employees over five floors, and with view to Edinburgh Castle, it is situated in a prime location in the popular business Exchange District.

LBTT revenue drops for first time since May

The Scottish Property Federation (SPF) has analysed the latest official figures released by Revenue Scotland, revealing a fall in revenue of Land and Building Transaction Tax (LBTT) for the first time since May.

Despite this, largely due to the strength of the second homes tax (the Additional Dwelling Supplement) the government will be pleased that the overall revenue is better in the first half of 2017-18 than in the previous two years of LBTT.

The figures fell £2.1 million in September to £49.8m due to a decrease in residential transactions and a fall in income from the Additional Dwellings Supplement.

Despite the decreased monthly revenue, compared to September in 2016, the total revenue has increased by £11.9m.

To date, 2017 has seen a total LBTT revenue of £281.6m, a significant rise compared to the same period in 2016/2017 of £222.9m and £183.4m in 2015/2016.

David Melhuish, director of the Scottish Property Federation, said: “September has seen the first fall in LBTT revenue since May. Although not by a huge amount, the fall was mainly due to a fall in revenue from higher value residential transactions in September.

“We continue to be concerned that the high rate of tax (10%) which kicks in with properties valued between £325,000 and £750,000 is deterring would be sellers and consequently depressing the supply of these properties to the market – this 10% tax threshold should start from no less than £500,000 in our view.”

The SPF is also concerned at a lack of higher value transactions in the commercial property markets: “The revenue from the commercial side of LBTT looks set to miss its £224m government forecast by a significant margin, having only accrued £79.2m in the first half of the tax year.

“The SPF remains concerned at these figures as Scotland’s commercial property market continues to show low levels of activity at the higher value levels. This suggests there is currently not enough depth to the markets and a lack of new property development in particular.”

Shetland businesses warm up to energy savings

A £200,000 funding boost from the Scottish Government’s District Heating Loan Fund is helping to heat businesses in Lerwick.

North Fish Shetland, who provide energy to Lerwick’s district heating scheme heating more than 1,000 homes and buildings across the area, received support from the District Heating Loan Fund to extend their biomass system in Blackhill, north Lerwick.

As well as bolstering the heat supply to the existing district heating network, the extension will also benefit six neighbouring businesses by providing them with a cheaper and more sustainable heating source.

The Blackhill scheme has been running for almost three years with the connected buildings cutting around a quarter off energy bills thanks to the system. Work on the extension has taken place over the summer and will be completed in time for winter.

Managed by the Energy Saving Trust, the Scottish Government’s District Heating Loan Fund has been designed to fund heat networks which can provide low carbon affordable heat to end users – including householders. Since 2011 the fund has offered £11 million of loans to 44 projects across Scotland.

The Scottish Government is now inviting organisations to apply for the next round of funding. Local authorities, social landlords, energy services companies (ESCOs) with less than 250 employees, small and medium enterprises (SMEs) and registered community groups are all eligible to apply.

Low interest, unsecured loans, typically up to £500,000 per project will be available for repayment over a period of either 10 or 15 years. Projects who wish to apply for higher value loans (above £500K) can also submit applications which will be considered on a case by case basis. The Energy Saving Trust will also provide technical support, guidance and assistance with the application process.

Charity secures £44k of grant support for revamp

Projekt 42, a charity aiming to tackle poor mental health, has secured £44,000 funding to transform its vision of opening a community gym and wellness centre into a reality.

Building on the success of its pilot programme in Leith, which saw over 400 members benefit from enhanced wellbeing, the social enterprise aims to open its larger, tailor-made, centre on Halmyre Street in 2018.

With two in three people in the UK experiencing a mental health problem at some point in their lives, the social enterprise will focus on improving the mental wellbeing of those in the local community through a range of services; from fitness classes, to mindfulness activities, life coaching, nutrition workshops, yoga, counselling, and more.

Five organisations in total awarded the community initiative the funds, which will assist the charity to move forward with its expansion plans. Support was received from FirstPort to the value of £25,000, as well as grants worth £13,500 from the Robertson Trust; £2,500 from St. James Place; Foundation Scotland presenting £2,000 and £1,000 by the Pleasance Trust.

Earlier this autumn, Projekt 42 lodged a planning application for the new wellness centre with Edinburgh Council, following pro bono support from Edinburgh based property developers Buccleuch Property, who have brought together a task force of local building experts, engineers and architects, to provide advice and assistance on the project, free of charge.

David Peck, managing director of Buccleuch Property, said: “Since we began working with Sara and the team at Projekt 42, I have been moved by her drive and determination to help those experiencing poor mental health across Edinburgh. This funding will not only allow plans for the new centre to progress further, but it is also a step towards securing its long-term future.”

71% of Scots ‘happy to rent property’, research reveals

Almost three quarters of Scots are happy to rent a property, according to new research which has also revealed that it suits many people’s lifestyles.

The research was undertaken by GVA and PRSim, who recently formed a new strategic partnership to provide the first fully integrated Build-to-Rent (BTR) service.

They say that contrary to the common belief that renting is a necessary evil whilst saving for a home, 71% of Scots are content living in a rented home and 82% of people believe renting a property best suits their lifestyle.

A Scottish Housing Survey also revealed that there has been an increase in the proportion of 16-34 year olds privately renting from 16% in 1999 to 40% in 2016. The sharp rise has been attributed to the difficulty in getting on the housing ladder, the stifling of real wage growth since the financial crash and the changing lifestyles of young people in Scotland.

Whilst the lack of housing supply against demand remains a big obstacle to first-time buyers renting is not viewed as a short-term option whilst people save for a home. Though for many people aged 20-34, the group commonly dubbed ‘generation rent’, the goal remains to become a homeowner, one-third of people look for tenancy agreements lasting three years or more.

The research was announced at Scotland’s Build to Rent (BTR) Forum, an annual event which examines the progress of BTR across the country. Build to Rent refers to developments owned by institutional investors that are designed specifically for rent rather than sale, and typically feature leisure amenities and a community element.

Increased BTR development has been highlighted as one of the key ways to alleviate the ongoing housing shortage, with the number of 20-34 year olds living in urban areas projected to soar and the total one-person households expected to rise by 31% by 2039.

The majority of renters in that age bracket also look for medium to long term tenancies when renting, with one third of Scots keen to have one lasting three years or more. This shows a desire for improved lease security for renters and is one of the appeals of BTR over traditional private rented sector accommodation, which often run on very short terms.

Other than London, Scotland is the only area of the UK to offer specific planning advice on BTR, and this has been cited as key to the rapid development of the sector over the past twelve months.

The Scottish Government recently released new guidance on BTR, and with ten projects already underway at various stages across the country.

The research document can be viewed or downloaded here.

McTaggart Construction delivers new homes for Loretto

A Loretto tenant has “come full circle” after moving into her new home in Springburn.

Rose Adens, who moved into Barclay Street in the summer, says Springburn holds a special place for her because her mother grew up there.

As well as moving back to her family roots, Rose also said her new home is warm, spacious – and she has friendly neighbours.

Leader of Glasgow City Council, Councillor Susan Aitken, joined tenants, staff from Loretto and Wheatley Group, local elected members, as well as representatives from the city council, the Scottish Government, the contractors and others, to mark the opening of the 49 new homes in Barclay Street this week.

The £6 million development in Barclay Street is made up of 49 homes for social rent. The homes, a mix of flats and houses, with four of the flats suitable for wheelchairs, were built by contractors McTaggart.

As part of the contract with Loretto, McTaggarts created eight new jobs and three apprenticeships to work on Barclay Street.

As well as the development in Barclay Street, Loretto opened 55 homes for social rent at Eriboll Street, Lambhill, at the start of 2017.

Work is already underway on another 28 Loretto homes in Broomfield Road, Springburn, and another 44 in Wallacewell Quadrant, Balornock.

Meanwhile, work is due to start shortly on 42 new Loretto homes in Shawbridge Street, Pollokshaws, and another 28 at Buckley Street, Ashfield.

Property prices soar in Glasgow’s East End and East Renfrewshire

The average selling price of two bedroom flats in Glasgow’s East End have increased by 19.4% over the last three months, indicating that the area may be the latest first time buyer hot spot, according to GSPC’s latest quarterly report.

The East End area of Denistoun is particularly very popular for first time buyers, with a young population who are serviced by new bars and eateries opening up. With fewer properties being brought to market in the area, flats are typically selling faster and for over the home report valuation.

This 19.4% increase is in contrast to a more modest 3.2% increase in average selling prices in Glasgow, and a 2.7% decrease in the average selling price of properties in the Southside. However the median selling time of properties in Glasgow is down to 22 days. This is 21.2% faster than the same time last year, and flats and houses in the Southside are still continuing to sell quickly.

Overall across west central Scotland, the average selling price of properties sold through GSPC between July and September 2017 increased by 5.9% and the median selling time of properties was 11.7% faster than the same time last year, down from 33 days to 29 days.

Outside of Glasgow, three bedroom homes in North Lanarkshire are showing the highest increase in average selling prices, up 27.3% to £146,451, while three bedroom homes in Renfrewshire increased by 18.5% to £193,179.

Solicitors in the area are reporting that selling prices for two and three bedroom homes in East Renfrewshire are continuing to rise at a rapid rate due to the good school catchment area. Properties in this area are particularly going to a closing date and obtaining up to 10% above home report value.

CMS Window Systems supports ‘hi-ho team’ to deliver school’s new sensory unit

A new sensory unit in Kilmarnock designed to provide a calming sanctuary for young people with communications disorders and autism, has been created by a team of industrious apprentices in just 40 hours with the support of partner contractors and suppliers, including CMS Window Systems.

The new Snow White and the Seven Dwarves themed wooden cabin, garden and sensory facility at Crosshouse Primary School, were created to cater for over 40 children who have autisms within the school which did not have a space for their needs.

The facility went from the drawing board to being built and ready to use in record time thanks to the heroic efforts of a team of 18 apprentices working for Morrison Construction and its supply chain, plus departments across East Ayrshire Council.

The construction of the new Crosshouse Communications Unit, which the Depute Head Teacher at the school says will have a massive impact on the day to day health and wellbeing of the pupils, was undertaken as part of the annual Ayrshire Chamber Modern Apprenticeship Challenge 2017. It brought together trainees studying for SVQs in Horticulture, Electrical, Administration and Joinery under the team name “EAC United”, reflecting their numerous different disciplines. They were joined by other Modern Apprentices and time served craftsmen from the private sector companies involved, to pull off the amazing feat.

Supporting EAC United was CMS Window Systems, which fabricated and supplied all the PVCu windows, French doors and entrance doors for the building, which has been nicknamed the “Happy Hive”.