Building Briefs – November 29th

• Rearo unveils Northampton expansion

Hot on the heels of its announcement that Rearo’s Gateshead branch was moving to a new Washington site, the new distribution site in Northampton will serve the Midlands and beyond. Heading things up is manager Pam Uppal, assisted by Leo Marjoram.

• Scottish office sector returns strengthen in third quarter

Scottish commercial real estate achieved a total return of 1.7% in the third quarter of 2018 to rebound from the 1.4% realised in the second quarter and return to the same rate of return achieved in Q1, according to data released by CBRE.

The property consultant said the main surprise this quarter was a marked improvement for the retail sector, where the total returns increased to 1.0%, and a rise of 0.7% from Q2. However, this still leaves the sector with the lowest overall return in Q3, behind offices (2.2%), alternative property (2.4%) and industrials (1.9%).

For the third quarter in succession, the annual Scottish all property total return was virtually unchanged at 7.0%.  Individual sectors have shown more change, in particular offices and industrials. Office annuals returns were the only ones to improve over the quarter, rising to 8.6% for the year to the end of September.

In contrast, industrial returns fell slightly to 8.4%, with the alternative property remaining the only sector with double-digit returns over the year (12.6%), well ahead of the weakest performer retail, at 4.0%.

A total of £505 million of stock was transacted in Scotland during the third quarter of the year, down from £578m achieved in Q2. This now sits at a similar level to the volumes achieved at the same time in 2017.

Overall, there has been £1.77 billion of spending across Scotland during the first nine months of the year, a 27% increase compared to the same period in 2017. With over £670m, the office sector has seen more money directed towards it than any other commercial sector. Meanwhile, just over £300m has been spent on retail warehouses.

The retail sector total is boosted by the sale of Fort Kinnaird Retail Park, located on the eastern edge of Edinburgh. M&G Real Estate acquired the park for £167.25m from The Crown Estate. This year also stands out due to the lack of any major shopping centre sale, which has traditionally boosted volumes in the sector. During Q3 the focus has been more on office market sales and high street retail deals in Edinburgh and Glasgow.

• CCG completes new affordable homes in Dalrymple

Eleven new build affordable homes specially designed for elderly and disabled people have been completed by CCG.

New tenant, Melissa Berretti and her two-year-old daughter, Sofia, who uses a wheelchair, welcomed visitors from East Ayrshire Council to their new home at Cassillis Court, Dalrymple.

The home is part of a new £1.74 million development constructed by CCG. There are eight two-bedroom homes, two 2-bedroom homes specially designed for older people and Melissa’s two-bedroom home designed for wheelchair users.

The new homes were built as part of a strategic partnership with CCG and supported by funding from the Scottish Government. Work commenced on site in November 2017 and was completed in the summer.

• Stirling primary school on track to re-open before Christmas

Strathyre Primary School is on track to re-open to the school community before Christmas as extensive refurbishment and improvement works near completion. 

Stirling Council has invested £1.864 million in the project which will provide additional teaching space and a sport, dining, and community area. 

It also will remove existing modular accommodation and the need to transport pupils off site for physical education. 

Along with improving the educational environment, the refurbishment will allow for better energy efficiency and reduced operating costs in the future.

At last week’s meeting of the finance and economy committee, councillors heard from officers in the land services team that everything was in place for contactors to hand over the building for the week beginning December 17.  

Staff have also been up to look round the new facility ahead of moving back in. 

Work on the school started in September 2017 and was due to end for the start of the 2018/19 academic year. 

• Quality planning award for Coatbridge building

The regeneration of the former Carnegie Library in Coatbridge has been recognised at the Scottish Awards for Quality in Planning 2018.

The red sandstone ‘Beaux Arts’ style building won an award in the Place category, which highlights innovation in any architectural building or place.

North Lanarkshire Council worked with Clyde Valley Housing Association (CVHA) to transform the building, which is a prominent landmark in the town centre. It was designed by Alexander Cullen, built in 1905 and financed by philanthropist Andrew Carnegie.

Supported by funding from Historic Environment Scotland, CVHA brought the vacant property back into use with the development of 12 affordable, modern flats with outdoor amenities.

The award was presented to CVHA by Kevin Stewart MSP, minister for local government, housing and planning, at a ceremony in Edinburgh.

• Work set to begin on new Borders play park

Construction of an exciting new £342,000 play park at Harestanes Countryside Visitor Centre gets underway next week.

Contractors Wicksteed will carry out the upgrade of the current facility near Ancrum, as part of a £3.1 million investment in new play parks, skate park and pump tracks and other outdoor community facilities across the Borders over the next four years.

The new play park is expected to be completed by spring 2019, but is weather dependent. Plans for the new play park will be on display at Harestanes during construction, with all current facilities at the visitor centre, such as the café, gift shop, walks and special events, continuing.

The Rowan Boland Play Park in Galashiels and Oxton Play Park both opened this year as part of the play areas and community outdoors spaces investment programme and have proved hugely popular with children of all ages and families.