CBRE

CBRE submits plans for three major west of Scotland developments

Custom House

Property consultant CBRE has submitted planning applications for three major developments across the west of Scotland on behalf of developer clients.

Representing Artisan St Enoch Quarter Ltd, a subsidiary of Artisan Real Estate Investors, the planning team has applied for consent for the redevelopment of Custom House, which links Buchanan Street with the River Clyde waterfront, in order to transform the site into a thriving hotel and leisure quarter.

The £90 million plan spans a development area of 2,700 sq m and, as well as the historic sandstone Grade A-Listed Custom House, also includes adjacent tenement buildings straddling the corner of Clyde Street and Dixon Street.

The application specifically relates to two new proposed hotels, a 294-bed four star with bar, restaurant and conference facilities and a 16-bed aparthotel, together with street level bars and restaurants.

The appointed architect is Glasgow-based Sheppard Robson. Subject to the outcome of the planning application, a completion date has been set for mid-2020.

Teri Porter, director in CBRE’s planning and development team, said: “It’s exciting to be involved in such a significant development for the city; this is a chance to bring the waterfront area back to its former glory having been vacant for so long. It’s been a huge achievement by the whole team to get to this milestone and we look forward to the outcome of the planning decision.”

Broadway Two

For McAleer & Rushe, the team has submitted a planning application for a mixed-use development at Broadway Two, the site between Renfrew Street and Renfield Street. The proposals include a new 300-bed 4-star Maldron Hotel and student accommodation comprising 446 one-bed flats. It will also include a central courtyard area for residents.

On behalf of Orchard Brae Ltd, consent has been requested for a residential-led, mixed-use development of up to 2,600 houses at EuroPark next to the M8 in North Lanarkshire. The scheme will complement the Eurocentral employment hub and benefits from the recent completion of the M8 motorway upgrade. The housing element comprises 1,600 private homes, collectively entitled ‘The Villages’, and 1,000 social affordable and market rent properties.

Teri Porter said: “Our client Orchard Brae is in discussions with a major affordable housing provider and believes that this element of the proposal will help to provide a diverse range of houses suitable for all amid a vibrant new community, representing a significant contribution to North Lanarkshire’s housing supply.

“In addition, housebuilder Dundas Estates has committed to developing one of the first phases of the private development following receipt of planning consent.”

New cycle and pedestrian routes have been earmarked for the site, intersected by the Monklands Canal and Calder Water, along with hotel, conference, retail and school facilities.

Teri added: “As a key element of the site, Orchard Brae also hopes to formalise and improve the green network locally, retaining at least one third of the land as open green space, which would include improved canal routes and heightened access and leisure opportunities for new and existing residents.”

Edinburgh office space take-up in first quarter reaches 139,969 sq ft

Stewart Taylor

Edinburgh’s office market has experienced a challenging start to 2018 with over 139,969 sq ft of take-up, according to the latest research from  commercial property consultancy CBRE Scotland.

Following a record year of take-up for the city, the figure represents a 42 per cent decrease from Q1 2017, where a number of large deals slipping out of Q4 2016 bolstered the results.

Allan Matthews, a director in the Advisory & Transaction Services team at CBRE, said: “While the Q1 take-up figure represents a significant year on year decrease, it should be noted that there was no ‘hangover’ of big deals from Q4 2017, with all major lettings completing prior to year-end, contributing to a record take-up for 2017 as a whole. With a number of substantial active requirements currently progressing, we anticipate take up increasing significantly in the coming months.

“In terms of occupier trends, the tech sector continues to rival the traditional financial services industry as being the main source of take-up in the city.”

Significantly, total Edinburgh city centre supply has fallen to 1,100,000 sq ft, half of the total supply figure of Q1 2013, which stood at 2,780,000 sq ft.

Mr Matthews continued: “Despite this seemingly slow start, conditions remain strong into 2018, with total city wide availability falling by over 60% in the past five years, from 2.78m sq ft to 1.1m sq ft. Options for immediately available brand new Grade A space are still extremely limited, and with only 38,648 sq ft scheduled to complete at 2 Semple Street this year, supply levels will remain critical.”

In addition to the completion of 2 Semple Street in July 2018, construction to boost the city’s Grade A office supply will continue throughout the year, with 65,000 sq ft at Chris Stewart Group’s development The Mint Building due to complete in early 2019, and BAM and Hermes’ joint venture Capital Square expected to deliver a further 122,000 sq ft in Q2 2020.

Stewart Taylor, senior director in CBRE’s Advisory & Transaction Services team, added: “Based on the five year average, the city has less than one year of Grade A supply. Add in the three speculative schemes under construction and that rises to a little over one year – but a significant percentage of that space is rumoured to be under offer. In the past you could point at a range of locations which either had planning consent or could get it within a reasonable time scale. That is not the case today and the lack of immediately available Grade A office space could impact the city’s economic potential.”

Consent granted for mixed-use quarter in central Glasgow

Planning permission has been granted for a new mixed-use quarter including 400 new homes in central Glasgow.

The masterplan for Central Quay, a seven-acre site on the western edge of Glasgow city centre, also includes over 300,000 sq. ft. of offices, a 150-bed hotel, food and retail units and an extensive public realm.

Central Quay is prominent from the Kingston Bridge and has been a brownfield site for several years. It is bounded by Anderston Station and the river Clyde and is owned and managed by Harbert Management Corporation (Europe) LLC and XLB Property. Both are advised by GVA and CBRE and the masterplan was designed by architects Keppie Design.

Tony Lawson of XLB said: “Central Quay is a significant site and its regeneration is long overdue. It will now provide a major new mixed-use quarter to the western edge of Glasgow City Centre close to the SSE Hydro, Scottish Exhibition Centre and major transport hubs.

“The masterplan is designed around a vibrant high-quality environment, providing new homes and offices plus supporting amenities. Harbert Management Corporation (Europe) LLC and XLB Property are in discussions with a major PRS developer to ‘pump prime’ the waterfront site. The first phase of development is expected to commence towards the end of 2018.”

Due to Central Quay’s location on the periphery of Glasgow city centre, the Grade-A office space will be available to pre-let at significantly less than city centre rents, which are now in excess of £30.00 per sq. ft. and reliant on refurbished stock with little speculative development in the pipeline and no new Grade A space with large floor plates anticipated in the city centre until 2021.

As well as the Central Quay masterplan, there is presently 30,000 sq. ft. of office space for rent at the adjacent 2 Central Quay.

City House office block set to disappear from Dundee’s skyline

Overgate_Centre_entrance_and_City_House_DundeeProperty services company CBRE has submitted plans to Dundee City Council to demolish a 1960s office block above the Overgate shopping centre and replace it with a new roof covering.

Under the plans, some of the Overgate’s upper mall units would be reconfigured to create a new management suite and a click and collect facility for online shopping.

Samantha Jackson, senior planner on the project, said the block was of “limited architectural merit” — and that its demolition would improve the city’s visual appeal.

In documents lodged with the council, she said: “The demolition of City House provides an opportunity to remove an ageing building of limited architectural interest and enhance the appearance of the Overgate centre and the wider city centre.

“It is considered that its demolition will significantly improve the city skyline.

“This proposal contributes to the continued improvement of Dundee city centre and its role as an attractive place to be, through the removal of a building which continues to deteriorate.”

City House was built in the 1960s as part of the original Overgate centre development. However, much of the 10-storey block’s office space has not been used for some time.

Levels three and four of the block will be retained above the shopping centre, which will remain open during the demolition work.

These areas, and parts of the Overgate’s upper mall, will feature a new management suite and meeting room facility.

The click and collect facility will include a new information and customer service desk, as well as an Amazon parcel delivery locker.

Image courtesy of Laerol CC BY-SA 4.0

Balfour Beatty to sell its US professional services business for £42m

heery-internationalBalfour Beatty has reached an agreement to sell its US professional services business Heery International to a subsidiary of CBRE Group.

The transaction, which is subject to certain contractual consents, is expected to complete before year end for a total cash consideration of $57 million (c.£42m), subject to working capital and debt adjustments.

For the year ended 31 December 2016, Heery’s gross assets were £78.2m, net assets were £21.5m and profit before tax was £2.4m. Balfour Beatty said the transaction “will release funds to be used in the normal course of business”.

Balfour Beatty acquired a 50% interest in Heery in 1986, which it increased to 100% in 1990.  In certain US markets, however, acting as programme manager on a contract precludes a company from bidding as general contractor due to perceived conflicts of interest.

The sale of Heery removes this constraint from the group’s US buildings operation, while enabling it to partner with Heery on a wide range of potential projects going forward.

Leo Quinn, Balfour Beatty group chief executive, said: “We continue to focus and strengthen the Group in our chosen markets. This transaction is another example of maximising shareholder value at the appropriate time and value, while improving our strategic position. We look forward to continuing our strong working relationship with CBRE.”

Plans lodged to demolish and redevelop front of St Enoch Centre

St Enoch Centre externalPart of the St Enoch Centre is to be knocked down to make way for new retail outlets under plans submitted to Glasgow City Council.

Mall operator Sovereign Centros wants to demolish “most” of the buildings at 135 to 153 Argyle Street and replace them with a new “high-quality flagship retail development”.

The latest proposals follow plans to add a nine-screen VUE cinema at the centre and revamp the existing food court.

St-Enoch-cinema-CGIIn its planning statement, commercial property consultant CBRE said that three operators were at an “advanced stage of discussions” about taking up space in the new units which have been designed by architects at Benoy.

It added: “The development proposes a sensitive restoration of the historic façade of the former St Enoch Picture House and secures its retention for the future in a use appropriate to the location for flagship retail users.

“The proposal to reconfigure the Argyle Street frontage of the St Enoch Centre is proposed with a view to improve the retail offer to this part of the city, and strengthening the role of the St Enoch Centre as well as Glasgow city centre itself.”

Paul Bailey, asset management director at Sovereign Centros, added: “The recent application to enhance holdings on Argyle Street forms a significant part of our ongoing business plan to provide bestin-class accommodation for our retailers and an enhanced customer experience.”

If the plans are approved, the new outlets are expected to open in 2019.

Location confirmed for new Inverurie trampoline park

CBRE associate director Iain Landsman

CBRE associate director Iain Landsman

The first trampoline park in Aberdeenshire has bounced into action after property consultancy CBRE secured premises at Highclere Business Park in Inverurie.

Skyline Trampoline Park has taken a 10 year lease on the 30,421 sq ft warehouse, which is located off Blackhall Road, and will deliver the first facility of its kind to open in the region after planning permission was granted by Aberdeenshire Council.

In addition to a trampoline arena, the centre features a cafe area and party rooms, a dodge ball court, battle beams, foam pits, tumble tracks, an open jump area, traverse wall, hang tough rings, and interactive light walls.

The new venture is expected to bring around 50 new jobs to the area once fully established.

Mr Landsman with Skyline Trampoline Park's Julie Mackenzie

Mr Landsman with Skyline Trampoline Park’s Julie Mackenzie

Iain Landsman, associate director at CBRE in Aberdeen, said: “In recent years, trampoline parks have become increasingly popular throughout the UK and we’re thrilled to have been involved in bringing the first one to the Shire. It is a unique use of industrial space in an accessible area. With a dampening in demand from the energy sector it represents an opportunity for landlords to look at alternative uses and diversify their tenant mix in buildings they hold in their portfolio.”

Julie Mackenzie of Skyline Trampoline Park added: “We’re very excited to have to opened Aberdeenshire’s first trampoline park after CBRE helped secure the perfect premises for our vision. The feedback we have received from customers so far is so positive and with over 10,000 likes on our Facebook page and over 8,000 visitors since opening last month, it’s great that the centre has been well received by people from the local area and beyond.

“Our aim from the start has been to create a destination for the north east community where people can come have fun while also getting fit.”

Development opportunity for over 800 homes at former West Lothian hospital site

Bangour 2The site of a former West Lothian psychiatric hospital which could become the site of hundreds of new homes after being brought to the market for sale.

Extending to 87 hectares (215 acres), the former Bangour Village hospital in Dechmont provides the potential for up to 800 new build homes and the conversion of existing buildings to form a further 91 residential units, subject to planning permission.

The hospital was built by architect Hippolyte Blanc in the early 1900s as the Edinburgh District Asylum and was designed as a self-contained community supported by its own amenities which included a village shop, church and railway. The use of the hospital diminished upon the opening of the local St John’s Hospital in Livingston in 1989, eventually closing completely in 2004.

Comprising open space, mature woodland and derelict buildings, the site was designated as a Conservation Area in 1993. It is bounded by open farmland to the north, east and west, and the village of Dechmont to the south west. It is zoned in the adopted West Lothian Council LDP for 500 homes and in the Proposed LDP (October 2015) for 550.

There are 15 listed buildings on site (two A-listed, three B-listed and ten C-listed) together with 30 non-listed buildings. All of the buildings on site are unoccupied.

Bangour 1In August 2015 an application for Planning Permission in Principle for a residential and mixed-use development was submitted to West Lothian Council along with applications for the demolition of listed and non-listed buildings. The masterplan proposes 891 residential units; a new primary school on site and circa 1,000 sq m of ancillary use. A total of 134 units (15% of the completed units based on 891 residential units) are to be affordable housing.

A decision on planning is expected in summer 2017.

The Scottish Futures Trust has been working with NHS Lothian to develop and deliver a strategy for the sale of the site with a focus on working up a commercially viable plan informed by stakeholder engagement.

Stewart Taylor, senior director at property consultants CBRE, which has been instructed to sell the development, said:  “We are delighted to bring this unique development site to the market for sale.  Bangour Village hospital offers an exceptional opportunity to acquire a significant site in the heart of Scotland’s central belt on the M8 corridor that is suitable for a variety of uses. Considerable work has been done by the vendor and their consultants to prepare the site for sale. We are confident there will be strong interest in the site and it’s likely a closing date will be set in early course.”

Justin Lamb, director at Justin Lamb Associates, added:  “Bangour is probably the best opportunity in Scotland to deliver a new village within an existing mature landscape setting, with refurbished listed buildings and a new primary school on site; providing the ideal setting for professionals and families of all ages.  It also includes excellent commuter links to the major employment centres of Livingston, Edinburgh and Glasgow with relative ease.”

CBRE expands National Building Consultancy team with new appointment

Ian Plender, Amie Owen and Roddy Morrison from CBRE

(from left) Ian Plender, Amie Owen and Roddy Morrison from CBRE

Property consultancy CBRE has announced the appointment of Ian Plender to its National Building Consultancy team.

Based in the firm’s Aberdeen office, Ian brings over ten years’ experience to the role following a stint in Knight Frank’s Building team. His new role with CBRE will see him covering all aspects of Building Consultancy such as acquisition surveys, dilapidations, project management and design for CBRE’s extensive range of local, national and international clients.

In 2015 CBRE re-established its National Building Consultancy team in Aberdeen following the appointment of Roddy Morrison, director and the head of the Building Consultancy team in Aberdeen. Since his appointment, Roddy has been focusing on developing the team to bolster its reputation as a market leading service.

In the past two years the team has been involved in over £50 million worth of project management and development monitoring instructions and has undertaken building surveys and dilapidation services on numerous properties across the retail, office, industrial and hotel sectors.  Its client base is predominately global oil and gas companies, pension funds and local and national property developers.

Roddy Morrison said: “This is an exciting time for the expanding Building team at CBRE; Ian’s appointment enables us to add capacity to the team to strengthen our offering to clients.

“We are confident Ian will prosper in his new role, implementing his expertise to handle clients on both a local and global platform. His knowledge and experience will prove invaluable as we develop the team and build on recent successes.”

Ian Plender added: “I am thrilled to be joining CBRE. It is a privilege to be furthering my career with the world’s largest property advisor. CBRE’s Building Consultancy team prides itself on offering strong technical expertise to a large and diverse client base so I hope to be a positive asset to the already skilled team.”

Sir Robert McAlpine wins £65m Aberdeen Silver Fin office contract

The-Silver-Fin-1Construction work for the £65 million Silver Fin project in Aberdeen is to start “imminently” after the award of the contract to Sir Robert McAlpine.

The 132,000 sq ft Union Street development will include a new Scottish granite façade onto Union Street and a glass and granite tower element featuring views across the city.

The “Silver Fin” branding relates to a number of vertical aluminium fins, which will clad all elevations of the tower element to catch the light for all to see and instantly recognise.

It’s the latest step in moves to transform the appearance of Aberdeen’s main throughfare.

Demolition of the site began in late 2014, with the project and the building due for completion in March 2017.

The building will be 13 storeys high, with four car parking floors and nine occupied floors and will sit alongside the new Capitol office development.

At ground floor level, the Silver Fin Building will offer a business lounge – designed for informal meeting facilities for occupiers and guests – and a four-storey atrium within the building’s reception area. The development will also offer 140 secure underground car parking spaces, 19 motorcycle spaces and 56 cycle spaces.

FG Burnett and CBRE, who act on behalf of the developer Titan Investors, believe the project will provide state-of-the-art office space in Aberdeen.

Jonathan Nesbitt, director at FG Burnett Aberdeen said: “This is a hugely exciting development for the city.

“It is a testament to the inherent strength of the Aberdeen market that such a level of institutional investment has been committed.

“We are delighted that building work is about to begin on site and that, so far, each planned phase of the project has been on track.

“The Silver Fin Building is set to re-invigorate the city’s West End and is the most high profile commercial development in Aberdeen.”

CBRE Aberdeen managing director, Derren McRae, added: “Not only will The Silver Fin Building change the face of the west end of Union Street and is set to be the city’s finest office building, but is also expected to stimulate increased investment in retail, restaurant and hospitality sectors in the vicinity of the development.”