invest edinburgh (april- june 2012)

INVESTEDINBURGH

QUaRTERly INVESTmENT maGazINE fRom ScoTlaND’S capITal apRIl To JUNE 2012

AwArded ‘Best LArge europeAn City of the future’ And ‘Best LArge europeAn City: foreign direCt investment strAtegy’ Financial Times FDi magazine 2012/13

alSo INSIDE ISSUE 40 » pRopERTy HoT SpoTS » HoloXIca – oNE To WaTcH » 10 QUESTIoNS foR pHIl mIllER » NEW aRRIValS IN RENEWaBlES » STaTISTIcS

BaNkING oN a GREEN fUTUREUk GREEN INVESTmENT BaNk: capITalISING oN EDINBURGH’SGloBal cREDENTIalS

<capITalfocUS IN THIS ISSUE

for a free quarterly subscription to Invest Edinburgh, or to obtain additional copies, please contact [email protected]

Invest Edinburgh is created in a partnership between marketing Edinburgh ltd and the city of Edinburgh council. It is published by Resolve creative, Suite 104, 47 Timber Bush, Edinburgh EH6 6QHt. +44(0)131 555 7585 w. resolve-creative.co.uk

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SUBScRIBE To INVEST EDINBURGH

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www.investedinburgh.com | apRIl To JUNE 2012 | invest edinBurgh 32 invest edinBurgh | apRIl To JUNE 2012 |

THE fIRST WoRD

Welcome to Invest Edinburgh, the quarterly investment promotion magazine for Edinburgh. The city of Edinburgh

council’s new economic strategy: A Strategy for Jobs 2012-17 has just come into being. This issue’s cover feature (page 10) outlines the services that the council’s investor support team can offer potential and new investors to help ensure a ‘soft landing’ on arrival to the city. This includes access to a new prospectus – Be INspired, Be IN Edinburgh – which will give investors information on the development hotspots in Edinburgh. Read more on page 3.

on page 8, phil miller, chief Executive of miller Developments answers 10 Questions and shares his views on the outlook for Edinburgh’s commercial property sector. Turn to pages 18 and 19 for our regular update on the latest trends in Edinburgh’s economy, including a forecast on office rentals from DTz Research.

I hope you enjoy this issue and, as always, feedback on any aspect of the publication is most welcome to: [email protected]

Tom BUcHaNaN,convenor of the Economic Development committee

SNapSHoTS

Edinburgh and the agenda for cities

NEW aRRIValS

Why Samsung Heavy Industries is locating on the firth of forth

10 QUESTIoNS foR…

phil miller, chief Executive of miller Developments

SUppoRT: maDE To mEaSURE

Top quality local support for investors

INSIGHT

We ask stakeholders how Edinburgh can extend the success of the public/private partnership that helped bring the Uk Green Investment Bank (GIB) to Edinburgh

(cover story)

makING IT HappEN

The arrival of the Uk GIB will have an impact on Edinburgh, Scotland and the whole Uk

THE STaTISTIcS

The latest key indicators for the Edinburgh economy

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i NVEST IN EDINBURGHaRE yoU:• a retailer looking to expand into a dynamic new market?• a hotel developer or operator interested in opening a hotel

in a global tourism hotspot?• a business looking to establish an office or contact centre

in Scotland?• a property developer interested in development opportunities?

If So, THE cITy of EDINBURGH coUNcIl aND ITS paRTNERS caN pRoVIDE yoU WITH:• free, confidential, impartial advice on your commercial

property and land requirements;• Introductions to key business and civic leaders;• assistance with recruiting and training staff with

the skills you need;• advice on accessing grants and other funding;• Guidance on doing business in Scotland;• High-quality market intelligence.

To find out more about how we can help you, please contact the Investor Support team at [email protected] or on +44 (0)131 529 6600.

THIS maGazINE IS pRINTED oN ENVIRoNmENTally RESpoNSIBlE papER maNUfacTURED USING 100% REcyclED WaSTE.

Key development hotspots in edinburgh are being promoted in a new prospectus for the city’s commercial property market.

council leader, Jenny Dawe launched the Edinburgh Development prospectus at mIpIm, the annual premier international showcase for development opportunities in leading European cities.

“The prospectus highlights why Edinburgh is one of the Uk’s best cities in which to live, work and do business.”

“THE pRoSpEcTUS ... BRINGS

ToGETHER INfoRmaTIoN oN

EDINBURGH’S DEVElopmENT

zoNES & caSE STUDIES

fEaTURING REcENT INVESToRS

IN THE cITy.”

Steve mcGavin, Head of the city of Edinburgh council’s physical Development Team, said, “The prospectus – Be INspired, Be IN Edinburgh – brings together information on Edinburgh’s Development

zones, case studies featuring recent investors in the city, such as Virgin money, The marriott Residence Inn and White Stuff, with answers to key questions.”

The seven hotspots for development are: • Fountain Quay, a canal-side regeneration

with outline planning consent for office, hotel, leisure and retail opportunities.

• The Exchange, focal point of the Capital’s financial centre, close to the Edinburgh International conference centre.

• Caltongate in the historic Old Town, with full planning consent for a 5 Star hotel and 23,226m2 of office space.

• Quartermile, a flagship mixed-use scheme in the heart of Edinburgh’s World Heritage Site.

• St James Quarter, an £850 million mixed-use development that will double the amount of retail space at the east end of princes Street.

• Haymarket, a prime development site with opportunities for pre-letting of office, hotel and retail space.

• Edinburgh International, which will establish a major growth zone next to Edinburgh airport.

opportunities also exist to shape the future of more than 2,400 hectares of prime real estate spread across Edinburgh’s four strategic development zones.

Dedicated zone managers are able to provide easy access to a wide range of commercial property experts, access to up-to-date information on local labour markets as well as fast track guidance on all aspects of local planning.

further informAtion

copies of the new prospectus:+44(0) 131 529 3730 or at www.investedinburgh.com

To find out more about any of the Development zones visit www.investinedinburgh.com

New city prospectus highlights

key opportunities for

commercial development

IN THE HoT SEaT

<SNapSHoTS

Bite size


WHaT Do THEy Do? Holoxica is a technology startup specialising in the design and production of mathematically accurate 3D digital colour holograms for medical, scientific and technical clients. The business is also currently engaged in cutting edge R&D, developing a dynamic holographic 3D technology previously restricted to the realm of science fiction.

WHy aRE THEy WoRTH WaTcHING?Holoxica’s patent-pending research continues to push the boundaries in the field of dynamic holographic displays, supported by the expertise of Ian Underwood, professor of Electronic Displays at the University of Edinburgh and professor alan Greenaway, Head of fields and Waves Group at Heriot-Watt University.

Holoxica already supplies scientists, designers and engineers with full colour holograms, created using state-of-the-art holoprinting technology from mathematical models, scanned data or caD drawings. applications range from protein structures in lifesciences to engineering holograms for the automotive industry.

1 To WaTcH

retAiL openingsgeorge street continues to prove itself the fashion hub of edinburgh’s thriving retail sector. the parisien brand Kooples is bringing its rock ‘n’ roll inspired style to edinburgh with the launch of its first scottish store at the end of April and us fashion retailer, hollister, opened their new store at the end of march.

EDINBURGH aIRpoRT No. 2 IN EURopE Edinburgh airport has been lauded in two recent surveys. It was placed 2nd in Europe in a survey of passenger satisfaction by aSQ, considered the global standard for measuring passenger satisfaction with more than 350,000 air travellers in 200 airports asked for their views. It was also voted the Uk’s top airport for families, in a poll for internet firm Skyscanner.

gAme onedinburgh-based flight search internet specialist, skyscanner, has predicted that scotland and the north west of england are likely to profit most from foreign visitors during the olympic games. Australians and Canadians are leading the charge to include these areas in their travel plans with flight searches from these nations to regional airports up 33% and 13% respectively. edinburgh is proving particularly popular.

Royal commoNWEalTH pool The Royal commowealth pool was officially opened on 20 march, by David Wilkie mBE. David won a gold medal for Scotland at the 1976 olympics in montreal. (See Invest Edinburgh 39 for further information on the Royal commonwealth pool). The British olympic Swim Team has chosen the Rcp as the venue for their final training camp immediately prior to the 2012 london olympic Games.

edinBurgh’s pArKs seCure goLd CosLA AwArd the quality of edinburgh’s parks and greenspaces has been recognised with a gold CosLA excellence Award. the accreditation – from the Convention of scottish Local Authorities (CosLA) – commends the Council for working with friends groups and local residents to deliver well-managed and well-maintained parks and greenspaces.

HoloXIca

WHaT coUlD IT mEaN foR THE aREa?Hollywood studios and the computer games industry have driven demand for authentic 3D content in recent years. However, approximately 30% of the population have problems viewing existing stereoscopic technologies. These people suffer dizziness, headaches and nausea when interacting with conventional 3D technology, side effects avoided by using holographic technology.

Holoxica have a technology roadmap in which the displays get better, cheaper and easier to manufacture and are currently in early discussions with potential investors.

Initial applications for the current numeric displays include simple things like clocks, 3D icons or head-up displays. However, the next generation of Holoxica displays will project 25 individual images in sequence, creating one second of 3D holographic video. Beyond this, Holoxica is looking at higher resolution 3D displays for medical and other professional imaging applications.

> further information: www.holoxica.com

having attended mipim – the world’s leading real estate fair – in march, dave Anderson, director of City development is cautiously optimistic for prospects in the property sector.

competition for foreign direct investment is becoming increasingly intense and challenging as more and more cities actively promote themselves. last year there was £33 billion of property-related foreign direct investment into the Uk, but only 12% made it out of london.

Edinburgh, Glasgow, manchester and, to a lesser extent, Birmingham, are the next tier of cities that investors look towards. Because Edinburgh is a capital city with a strong financial services sector, an excellent skills base and a strong quality of life, the city is seen as a sound investment.

In past years, attendance at mIpIm has helped build relationships with henderson global investors, who are now developing the £850 million st James Quarter project; Jansons, developers of a £35 million hotel development in the cowgate, and Arcus, who bought forth ports in 2011. Edinburgh’s delegation also met intermediaries with links into finance in london and elsewhere, including sovereign funds, private equity or large infrastructure funds. major hotel groups like marriott and Accor are also very active at mIpIm and are tuned into the fact that Edinburgh has a shortage of hotel accommodation, particularly at the high end of the market.

> further information: www.investinedinburgh.com

mIpIm – aN INVESTmENT SHop WINDoW global technology leader in wind

energy, gamesa, has announced that it is in discussions to establish a major offshore manufacturing base at the port of Leith, edinburgh.

“Selection of leith as our preferred partner for the memorandum of Understanding (moU), aimed at establishing a Uk manufacturing base, is only a first stage, but an important one,” said Jorge calvet, chairman and cEo of the Spanish company.

The discussions reinforce the strategic significance of leith for offshore wind projects in the Uk. Depending on market developments, Gamesa envisage up to 800 jobs at their manufacturing base, with leith becoming the Uk hub for their blade and turbine casing plants, port logistics and offshore and marine services.

over time, and subject to commercial opportunities, the development could represent an initial investment of about€€150 million.

Gamesa is developing a long-term strategic relationship with the Uk. In 2011, the company established a new R&D facility in Strathclyde, which currently employs more than 60 engineers, and it recently moved its global offshore wind HQ to london.

The firm’s discussions with the port of leith follow a detailed process to identify a partner port that can meet their manufacturing and operational requirements while providing the optimum commercial solution.

> further information: www.scottishrenewables.com

GamESa EyES Up lEITH

investment management firm Brewin dolphin has agreed to a deal to move into the new ‘Atria edinburgh’ office next to the edinburgh international Conference Centre (eiCC) when it is completed in June 2013.

The £30 million Grade A speculative development by city of Edinburgh council is part of the business plan for the extension to the EIcc, which will welcome its one-millionth delegate this year and has delivered an economic benefit to the city of more than £300 million since opening.

council leader, Jenny Dawe said: “atria Edinburgh is a key development for the city. To have secured a tenant of this calibre a year ahead of completion is quite exceptional.”

The EIcc Expansion space is part of an £85 million city centre development that includes almost 18,580m2 of Grade a office accommodation.

the scottish government has established a £5 million Cities investment fund to support a scottish Cities Alliance (sCA).

The cities Investment fund is designed to accelerate the pace of investment in Scotland’s cities by developing programmes that lever in other funding – either private finance or European funding – and supporting collaborative programmes between cities, which will develop large-scale projects.

Developing programmes that allow for wider city region investment is another objective.

Sca will see the leaders of local authorities, including Edinburgh, team up in a new economic partnership to attract investment, create jobs and help Scotland’s cities compete more successfully on the international stage.

The alliance, facilitated by the Scottish council for Development and Industry

(ScDI), has been tasked with developing growth initiatives focused on four priorities, and will draw on the expertise of the public, private and academic sectors.

Sca pRIoRITIESConnectivity• Improving rail and air connectivity to

key national and international markets• Delivering world class digital.

connectivity, capacity and usage across the cities and their regions and improved mobile coverage along our main transport links.

sustainability• Securing new jobs and investment

through the transition to a low carbon economy.

• Delivering combined heat and power energy systems and district heating networks across cities in collaborative propositions.

Knowledge• Exploiting competitive advantage in

renewable energy by identifying and developing complementary city region assets and strengths, including links to the cities’ collective academic research expertise.

• Maximising the economic impact of further and higher education institutions as drivers of city economies.

Cultural• Ensuring closer working between the

cities and national agencies to market the cities and their regions as appealing places to live, visit, study and invest.

• Adopting a Scotland-wide approach to major events, including the 2014 commonwealth Games and Ryder cup, to ensure maximum impact across the city regions.

> further information: www.scdi.org.uk

aGENDa foR cITIES

GRaDE a pRE-lET WITH yEaR To Go

<SNapSHoTS

www.investedinburgh.com6 invest edinBurgh | apRIl To JUNE 2012 | | apRIl To JUNE 2012 | invest edinBurgh 7

aRT of ScIENcEwhen the Abu dhabi technology development Committee (tdC) decided to host a new science festival last november, they invited the edinburgh international science festival to act as a major programming partner.

The world-class event was the first of its kind to be held in the capital of the United arab Emirates (UaE).

Dr Simon Gage, Director of the Edinburgh International Science festival, said: “Science festivals were invented here in Edinburgh. There are now hundreds of them around the world, yet we are still seen as a benchmark for quality and innovation.

“Scotland stands as a world leader in science and technology and we are a world leader in communicating science to the public, so we were thrilled

to share the expertise and knowledge gained from our own festival, the first of its kind in the world, which celebrated its 24th anniversary in march 2012.”

Some 20 events from Edinburgh featured in the abu Dhabi festival and more than 40 trained science communicators travelled to abu Dhabi to work alongside local undergraduates.

following the success of this inaugural event Dr Gage is working on the programme for the second abu Dhabi Science festival, which will take place this autumn, with the EISf (Edinburgh International Science festival) once again featured as a major progamming partner.

> further information: www.sciencefestival.co.uk

NEWArrivALs

WHo’S oN THE moVE?korean giant Samsung Heavy Industries (SHI) has announced that it will base its first European offshore wind project at the methil Energy park in fife. This facility lies opposite Edinburgh, on the north bank of the firth of forth.

WHy THE moVE?This inward investment, worth up to £100 million, reinforces Scotland’s place in the development of the next generation of offshore wind turbines. The Energy park itself, which is owned by Scottish Enterprise, has had £17 million invested over the last six years, creating a facility tailored to the requirements of the renewables sector.

SHI will develop a full test and demonstration of its 7mW wind turbine at the Energy park. This test has the potential to lead to manufacture of its turbine casing,

gearbox assembly and blade manufacturing at facilities in Scotland and could create up to 500 jobs.

SHI also signed a multi-million pound deal with East kilbride-based David Brown Gear Systems to supply gearbox systems for its latest offshore wind turbine.

WHy IS THIS ImpoRTaNT foR EDINBURGH?Samsung’s decision is viewed as a huge vote of confidence by a major and well-respected global business in the Scottish supply chain. But it also has specific relevance for Edinburgh.

The deepwater port of leith, on Edinburgh’s Waterfront, is the focus of an industrial regeneration plan that will see it evolve as a hub for renewable energy developments in the North Sea.

In addition, the Uk Green Investment Bank, headquartered in Edinburgh, has

been capitalised with £3 billion in order to assess the potential of renewable energy and low carbon projects and selectively invest public money.

Samsung’s decision to locate at the methil Energy park further strengthens the city Region’s overall focus on the sector.

> further information: www. investinfiferenewables.co.uk

who CAme to edinBurgh, when And why?

mAde in edinBurgh

lESS IS moRE WITH coDEplaypioneering edinburgh-based technology company, Codeplay, has seen its Offload software product nominated in the scottish Business Awards* ‘new product of the year’ category, in march 2012. Offload enables game developers

and programmers to get the maximum possible performance from the code running their game.

Codeplay is a world leader in advanced computer graphics and compiler optimisation. Over the last nine years, the company has worked with many of the world’s largest and most advanced technology companies, including Sony and Qualcomm, on devices from mobile phones to games consoles, enabling them to increase performance and create advanced new graphics.

For example, Offload enables game developers to increase performance by 300% and reduce code size by up to 400% on the hugely popular Sony PlayStation®3.

The benefits of Offload were demonstrated in Codeplay’s recent collaboration with Eutechnyx on the official NASCAR™ video game. Codeplay’s software allowed Eutechnyx to create the most realistic real-time damage effects ever seen in any video game. Offload

also enabled dynamic damage effects to be used across all of the leading games consoles – the Sony PlayStation®3, Microsoft Xbox 360 and Nintendo Wii.

Uwe Dolinsky, Chief Technology Officer, said: “Developers are having to work much harder to squeeze ever greater performance out of the consoles and platforms on the market. With Offload we’ve created an extremely powerful tool that helps developers build the best possible games experience for players – no matter which device it’s aimed at.”

As the popularity of gaming continues to grow and reach an increasingly diverse range of devices such as smartphones, tablets and other consumer electronics, Codeplay’s optimisation technologies will become ever more critical.

“Our technology is the result of more than 10 years of research, development and customer feedback in commercial C/C++, shader and OpenCL compilers,” adds Uwe. “We adapt our optimising compiler technology tools and their integrations for a variety of very different single and multi-core processor systems. This has made our technology very flexible, widely applicable and highly configurable.”

* The Scottish Business Awards celebrate excellence in Scottish business and “recognise the companies that are changing the face of Scotland through the goods, services and innovations that they provide.”

> further information: www.codeplay.com

foUNTaINpaRkthe City of edinburgh Council plans a massive expansion to edinburgh’s financial district, to be built on the site of edinburgh’s historic fountain Brewery.

The council, which owns the 11.5-acre site, has unveiled plans to encourage the development of a new ‘business district’, which will form more than half the development. It will sit alongside a new, eco-friendly Boroughmuir High School.

New homes, a new canal boat marina, cafes, bars and restaurants, student housing for Edinburgh Napier University and a public park are also planned as part of the canal quarter. It is thought upwards of 500 new jobs could be created in the area.

The expansion for the ‘Exchange’ financial district, which first started taking shape in the early 1990s, will help address a predicted shortage in office accommodation over the next few years.

The council, which has pledged to help pay for the new Boroughmuir High, will need special permission from the Scottish Government for its plans for the new school. The council plans to create outdoor decks on different levels of the five-storey school – and build a sports pitch on its roof.

> further information: www.investinedinburgh.com

EIB loaN BooSTS TEacHING aT UNIVERSITyteaching and research at the university of edinburgh are to benefit from a £50 million loan from the european investment Bank.

The funds will support projects including the main library refurbishment and the installation of an energy efficiency network on the campus. also set to benefit is the newly created Edinburgh centre for carbon Innovation, which will seek to foster collaboration between policy, community and business leaders to support and deliver a low-carbon future.

The funds will also enable improvements at the School of languages, literature and cultures.

Development of the University of Edinburgh campus will improve research collaboration and overall learning through relocation of key activities from different sites.

over the past five years the European Investment Bank has provided £1.6 billion for education investment in the Uk.

professor Sir Timothy o’Shea, University principal, said; “This loan will help to fund a range of new-build and refurbishment projects that will enhance the quality of the research and teaching infrastructure at Edinburgh.”

> further information: www.ed.ac.uk

© aquamarine power

<10 QUESTIoNS


IE> miller Group is involved in a number of prestigious key projects across the country and throughout Europe. can you give an overview of these and your responsibilities?pm> miller Group includes miller Homes, one of the Uk’s top ten housebuilders, miller construction, which operates across the Uk and is involved in pfI and framework contracts, and miller Developments, the commercial property arm active in the Uk and Europe. as chief Executive of miller Developments I have overall responsibility for our development and investment programme in the Uk and Europe and I sit on the Executive Board of The miller Group.

miller is headquartered at Edinburgh park, where we have developed over 139,350m2 of offices over the last 20 years as a joint venture with the city council under the banner New Edinburgh limited. another Edinburgh project highlight is Edinburgh Quay, a multi-award winning

mixed-use development that set the benchmark for canal-side regeneration. This site, developed jointly with British Waterways, commenced the regeneration of the fountainbridge area. (See page 7).

other prestigious projects in the Uk include arena, our 7.8 acre/213,670m2 mixed-use development in Birmingham city centre and omega North, the 350 acre £1bn industrial and mixed use development joint venture with RBS in Warrington.

We’d like to do more in the Uk and in Edinburgh in particular and are looking for the right opportunities.

IE> Despite a broad international portfolio, miller Developments remains an Edinburgh-based company. What benefits does the city offer as a headquarters?pm> We’ve been here for 80 years and it is home, and a home we are always proud to show off to our European partners. In recent years I have spent a

lot of time away, looking after our many European developments which stretch from Spain to Denmark. flying home is always a joy and the green spaces and the distinctive layout of the New Town you see on landing always remind me of how special Edinburgh is.

We believe miller Group’s continued success is due to the high calibre of our employees and Edinburgh helps us to attract the best candidates. In fact about 400 of our 1,400 employees work in the city. It’s such an attractive place to live, which appeals to staff. It’s also a well-connected city, with regular domestic and international flights.

IE> How do potential property investors currently perceive opportunities in Edinburgh?pm> We’re all operating in a very difficult financial environment. Banks are not looking to invest in commercial property and that was the traditional funding vehicle for investment and development in our sector. The issue now is how to replace that investment. However, Edinburgh is increasingly a business friendly city and is a rich, established city, so it’s an attractive place in which to invest. also, in the current downturn, Edinburgh’s broad based economy has held up well.

phil millerchief Executive, miller Developments

IE> from your own point of view, how has Edinburgh’s commercial property sector fared in recent years? pm> The city has been affected in the short term, like other cities, by both lower occupational demand and through tighter access to finance. However, the Uk Green Investment Bank’s creation in Edinburgh and the arrival of Tesco Bank and Virgin money are all good signs for the city’s financial sector, which is a key part of the city economy, and the future looks encouraging.

IE> What challenges face the sector in Scotland generally, and in Edinburgh specifically, in the short and medium term?pm> you can’t divorce property from the macro economic situation across Europe, which has had an impact on confidence in every city. However, Edinburgh fares much better than most because of the diversity of the city’s economy – another factor that makes it such an attractive place to invest.

We need to recognise that the old ways of financing investment won’t work. Edinburgh has to innovate and find new ways to back investment. The Tax Incremental funding that has been developed for Edinburgh Waterfront is a good example of doing just that.

IE> you lead the Scottish property federation’s (Spf) working group on property finance. How does the group support investors and developers?pm> Spf established the property finance group as banking began to experience difficulties, two years ago. as banks adjust their balance sheets Spf wanted to look at how bank deleveraging would work. We’re now sharing that insight with members and looking at alternative funding options. There’s no easy or quick fix and we need to help the sector come to terms with the changed world. However, we can see increased interest from Uk pension funds and insurance companies,

looking to step into the banks’ traditional role and equity funding is also there for the right projects.

IE> What support would you like to see from public and private sector partners for commercial property as a sector in Scotland?pm> Sensible public policies with regard to property will be a driver of wider economic growth. Edinburgh as a city is responding well to that challenge and the council is working closely with the private sector to develop the local economy.

Government can help by being sensitive to the needs of business and intelligent in their interventions with measures such as agreeing a rate rebate for speculative developments until they are let. Spf has its own wish list that has been presented to Government. We believe they are listening – but time will tell.

Through my own involvement with the Spf we have argued for a more joined up approach from national and local government. So it’s very encouraging to hear of the approach adopted by Sue Bruce, cEo of the city of Edinburgh council, in promising a joined up strategy across all council services.

I think Edinburgh is a good example of a city where the Economic Development Strategy is owned by the business community and the public sector, both working together, which is also attractive to investors.

IE> How will Scotland’s commercial property market fare in the current economic climate, in terms of investment value and jobs?pm> I think there may be further difficulties to come in the sector. cushman Wakefield recently revealed that the number of banks lending to commercial property in the Uk fell by a third in 2011. However, Edinburgh may benefit. What investment there is will look to safe environments, and cities such as Edinburgh and london are seen as locations with better prospects. The city has everything to play for and a better than average chance of attracting new investment.

IE> What philosophy drives the ongoing success of miller Developments in such challenging times?pm> We will continue to prudently manage our existing interests across the Uk and in mainland Europe but our short-term focus will be the Uk. Development

now is about city centres and mixed use. We are looking for opportunities with an element of risk, where we can fully utilise our development skills, financial strength and partnership culture to act as a catalyst for the generation of profitable projects.

IE> How optimistic are you for the future?pm> We are optimistic about the prospects over the next few years. as a Group we recently restructured our balance sheet and have brought in £160 million of equity investment from GSo capital partners, a subsidiary of Blackstone, a US private equity group. With long term arrangements with our bank lenders also in place, we’re now set up and looking forward with confidence. We see big opportunities and we think many of our competitors still need to complete the restructure of their own finances.

Scotland’s commercial property sector employs more than

85,000 people and contributes around £5 billion per year

to government revenue – some 5.7% of the country’s GDp.

We ask phil miller, for his personal outlook. “WHaT INVESTmENT THERE IS WIll look To SafE ENVIRoNmENTS, aND cITIES SUcH aS EDINBURGH ... aRE SEEN aS locaTIoNS WITH BETTER pRoSpEcTS. “

further informAtion

www.millergroup.com

Cv

phil miller is Chief executive of miller developments, one of the Uk’s leading urban development and investment companies. He was appointed to the post in 2004 following more than 20 years with the company.

phil previously served as managing Director from 1997. He is a member of the Executive Board of The miller Group limited. from 2009 – 2011, he was chairman of the Scottish property federation (the Scottish wing of the British property federation), which promotes to government the interests of all those who own and invest in property in Scotland.

Edinburgh park: home to many leading companies, including BT (above) and miller Developments.

www.investedinburgh.com | apRIl To JUNE 2012 | invest edinBurgh 11

SUppoRT: maDE To mEaSUREaRE yoU WEIGHING Up WHERE To INVEST?

<fEaTURE

many factors need to be considered and you need top quality

local intelligence to be sure your choice is going to prove right in

the long term. That’s why, in order to supplement Edinburgh’s

well-known strengths – from its ability to attract and retain talent

to its outstanding quality of life – the city also offers a service to

help investors gain a return as quickly as possible.

10 invest edinBurgh | apRIl To JUNE 2012 |

INVESTmENT STRaTEGywhat is it? Edinburgh’s Investment Strategy outlines an approach to investment promotion.

who is it for? The Investment Strategy identifies a seamless service offered to investors. This includes planning guidance, sourcing office space, advice on housing and schools, and support for staff recruitment and training.

Appraisal: fDi Magazine – the Financial Times’ foreign direct investment publication – judged Edinburgh to have the best foreign direct investment strategy of all large European cities.

> more information: investor support team, [email protected]

When considering whether or not to invest in new locations, businesses must weigh up a number of factors: from

finding suitable premises or accessing the local supply chain to engaging with other businesses in the city.

The Investor Support Team at city of Edinburgh council understands this. The team is dedicated to helping overcome these challenges through its ‘soft landing service’, which sits at the core of the city’s Investment Strategy for 2012-2017 (see box). It provides tailored support, including advice and assistance with:• Relocating your business and staff

to Scotland’s capital.• Sourcing appropriate city-wide

office accommodation. • Housing options for staff who are

relocating to the city .• Private and Public schooling in the city,

for any staff who would need to relocate their children.

your dedicated officer in the Investor Support Team provides support throughout

your set-up phase in Scotland’s capital. The Team also offer additional services including:• A first point of contact for any issues that

may have an impact on your business, including bringing the right people together to facilitate solutions on your behalf, providing fast-track guidance and on-going support.

• Introductions to key people within the city’s business community and partner organisations, access to regular business events, international receptions, and other high-level networking opportunities.

• Opportunities to promote your business through local, national and global promotional activities.

• Guidance and support on all aspects of local planning and building control

• Access to the Executive Skillsbank. This facilitation service provides managers and executives on a voluntary basis (with the company covering reasonable expenses) during a time-bound, structured period.

• Ongoing access to detailed information and intelligence on the local and national labour market, economy and outlook.

12 invest edinBurgh | apRIl To JUNE 2012 | | apRIl To JUNE 2012 | invest edinBurgh 13www.investedinburgh.com

<fEaTURE

the City’s diverse eConomy

The decision to locate the Uk’s Green Investment Bank in Edinburgh is the latest in a long line of exciting developments for the city and recent success in attracting fDi – including amazon – reinforces the capital’s role as Scotland gateway to growth.

finAnCiAL serviCes

In 2011, 34 fDi projects came to Edinburgh creating an average of 58 jobs per project. Germany and Switzerland were the biggest

investors in this sector. Swiss life and Swiss banking software specialist, avaloq, both opened operations.

These companies benefit from being located in the Uk’s second largest financial centre. Each exemplifies the enormous pulling power of Edinburgh’s skilled and talented workforce, the proximity to world class universities and an unbeatable quality of life and cultural offer.

tourism

Edinburgh’s cultural offering is also enjoyed by 3.3 million visitors a year – making Edinburgh the Uk’s most visited city after london. HVS/STR Global’s market Snapshot shows that Edinburgh’s hotel sector bucks the general economic trend observed elsewhere in Europe (see Invest Edinburgh 37). The high profile investments in this sector reflect this booming visitor economy. In fact, the Edinburgh Tourism action Group (ETaG) has released its own Tourism Strategy, which aims to increase the value of visitor spend by 38%, up from £1,015 million in 2010 to £1,404 million in 2020.

reseArCh & deveLopment

Edinburgh’s four universities are global centres of excellence in disciplines including informatics, stem cell research,

biotechnology and microelectronics.a number of pioneering initiatives

are underway across the city Region, including Edinburgh BioQuarter, a landmark Uk life sciences real estate development, and Edinburgh Science Triangle, a dynamic collaboration of seven science and technology parks that together house more than 3,000 world-class researchers and 100+ market-leading companies.

renewABLe energy

The Edinburgh city Region is at the forefront of Scotland’s renewable energy sector, due to its expertise in developing and bringing to market new renewable technologies and existing strengths in engineering and traditional energy.

Edinburgh is home to a wide range of leading marine energy companies, including aquamarine Wave power and pelamis, the world’s first developer to launch a commercial offshore wind farm.

It is projected that the city could have a 14% share of European offshore wave installed capacity by 2020.

CreAtive industries

more than 3,230 creative businesses in Edinburgh already contribute to the Scottish economy. activity in Edinburgh’s creative sector, reported in the Institute of

creative Industry’s 2011 study, spans a dozen disciplines – from design to film, TV and radio. (See Invest Edinburgh 39.)

> further information and back issues: www.investinedinburgh.com

Edinburgh’s Investment Strategy is driven by insight into investor requirements, markets and competing cities and regions. This insight has been built on best practice, investor feedback, targeted research and market analysis.

as the Investor Support Team demonstrates, the city is working effectively to maximise the effect of new investment flows for Edinburgh’s citizens and communities. This approach is delivering results; not least with fDi Magazine – the Financial Times’ foreign direct investment publication – voting Edinburgh Best large European city for its fDi Strategy in the recent European cities and Regions of the future awards for 2012/2013.

THE WIDER coNTEXTcreating the conditions for future growth and jobs is the principal objective of the city of Edinburgh council’s new Economic Strategy (2012-2017). Those conditions involve changing the way the council itself is being run. Sue Bruce, the council’s

chief Executive, explains: “The council is a major player in the Edinburgh economy. Its policies on recruitment and procurement are of major significance to job seekers and supplier businesses. Its central role in running the city – providing a range of vital services such as education, housing, local area planning, regeneration, waste collection, leisure, community care, transport, and looking after the city’s environment – is of great importance to the economy. and it has scope to rationalise the use of its own property assets to lever in investment. This is why our Economic Strategy is for the whole council – recognising the interconnections between all of its services – and how creating the conditions for new jobs is everyone’s business.”

UNDER THE EcoNomIc

STRaTEGy, all coUNcIl

SERVIcES – fRom ScHoolING,

THRoUGH plaNNING To

TRaNSpoRT – WIll BE

DEDIcaTED To acHIEVE THE

oVERall aIm of THE STRaTEGy:

To cREaTE GRoWTH aND JoBS.

“Edinburgh has had considerable success in attracting inward investment from major global companies in recent years,” explains Greg Ward, Head of the council’s Economic Development Service. “Such investment brings substantial benefits: improved productivity, job creation, increased skills and innovation performance, developments for residents such as new facilities and housing, and supply chain opportunities for indigenous businesses.”

With the commitment to support investors at every level of the council, this ethos is reflected in concrete activities on the ground.• investment in development and

regeneration: The Economic Strategy envisions that Edinburgh’s appeal as a place in which to live and work will improve by

providing excellent connectivity, public realm improvements, affordable housing and encouraging the development of new industries and new markets. To acheive this, Tax Incremental financing and other innovative ways of using the city’s limited resources to leverage new investment will be explored.

• support for local businesses: The council aligns its business support activities with other business-facing services to ensure a joined up approach that helps businesses prosper. firms can get help in developing their business skills, accessing new markets, introducing new products and promoting an entrepreneurial culture.

• help unemployed people into work or learning: The council is adopting a bold approach to service delivery and a greater focus on young people through initiatives such as the ‘Edinburgh Guarantee’, which seeks to increase the number of jobs, education and training opportunities being made available to young people.

fUTURE poTENTIalpartnership is a key part of the new strategy; between private sector business and public authorities responsible for development, between the council’s own services and also between cities and regions with economic synergies.

The decision of Business Secretary Vince cable to locate the headquarters of the Uk Green Investment Bank (GIB) in Edinburgh, was both excellent news for local companies and businesses working within the green economy (see p16) and for the financial sector within Edinburgh and beyond.

Glasgow, itself the second city in the fDi large city category and home to The International financial Services District (IfSD), a purpose-built centre of excellence for financial services, recognised the benefits that would accrue to the entire financial sector across central Scotland and supported Edinburgh’s bid to host the GIB.

other examples of collaborative working include fife Region and East of Scotland Renewables working with Edinburgh to promote the region’s strengths in renewable energy, especially the port of leith’s potential in support of offshore wind developments along the east coast.

as Dave anderson, Director of city Development says, “With transformational developments such as 85 hectares of land adjacent to Edinburgh airport, Edinburgh’s Waterfront and atria Edinburgh, the only speculative Grade a development in the Uk outwith london, the city is an undisputable location of choice.”

EDINBURGH’S foREIGN DIREcT INVESTmENT STRaTEGy aND THE EcoNomIc STRaTEGy aRE EXcEllENT NEWS foR INVESToRS, WHaTEVER THEIR SEcToR aND REGaRDlESS of WHERE IN THE cITy THEy WaNT To INVEST.

combined, they demonstrate Edinburgh’s commitment to create the optimum business environment and actively ensure the city attracts investment from abroad and supports the development of home-grown companies.

what is it? a strategy focused on creating the conditions for attracting and sustaining jobs and helping people access them.who is it for? The Economic Strategy is for Edinburgh’s current and future residents. Supporting inward investment is a major strand within this approach.Appraisal: “This is a well marshalled and intelligent document. Economic watching and analysis is something this city does well”. The Scotsman

> further information: www.edinburgh.gov.uk/economicreview2011 and e: [email protected]

cITy of EDINBURGH coUNcIl’S EcoNomIc STRaTEGy 2012 – 2017

winner North European cities: fDi Strategy

top ten large European cities: Business friendlinesslarge European cities: Economic potentiallarge European cities: Human Resourceslarge European cities: Quality of lifeoverall European cities: fDi Strategy

top 25 European cities: overall

These new economic strategies seek to ensure continued success for both city and region. To learn more about how we can support your business contact the Investor Support Team t: +44 (0) 131 529 6600e: invest@edinburgh- inspiringcapital.comwww.twitter.com/investedinburgh

further informAtion

© aquamarine power

<INSIGHTS

RoUND TaBlE:


Edinburgh’s economic development is being built on a shared

strategic foundation between public sector planners and private

sector business leaders. Given the legacy of the successful

campaign to secure the Uk Green Investment Bank (GIB) for the

city, how can this partnership be enhanced in future?

Angus mcpherson, head of investment Banking at espirito santo investment BankIf you look at how

Hyderbad, or Bangalore, or Silicon Valley became world centres in information technology, there was industry know-how, intellectual rigour, research and financial knowledge, all located in one relatively small place.

They were also away from the conventional centres, which seemed to encourage unconventional thinking. If you get all three working together, as is already happening in Edinburgh, you have the basis for developing a significant centre of expertise.

nathan goode, partner, grant thorntonThe GIB campaign process challenged people to think

beyond the organisations that they represented. Supported by a large stakeholder group, the project itself was driven by a small number of people who committed time and resources to make it happen. There was no certainty about the outcome – in fact there were times when it looked like a distinctly long shot – and no-one came to the campaign with a readymade view of

how to win, and the group pooled its ideas and knowledge. leadership was determined by the needs of the campaign itself rather than by external factors. organisations and individuals (including politicians) who normally compete saw the bigger picture. a number of very interesting lessons come out of this: successful partnerships work out their own solutions, they are led by small groups of individuals, they adapt over time and true partners leave their own organisations at the door.

owen Kelly, Chief executive, scottish financial enterpriseThe strong collaborative approach of all those involved in the

Edinburgh bid for the GIB was an excellent example of a very broad range of interests from public and private sectors working

well together. The team’s success in bringing the GIB to Edinburgh is testament not only to the very strong business case but also to the determination to drive forward this project with the involvement of quite diverse interests. all too often such a venture would be fraught with competing aims but with the overarching goal of moving forward the commercialisation of low carbon technologies in the Uk, the bid to locate the GIB in Edinburgh was ultimately successful.

sefton Laing, head of environmental sustainability, rBs group There’s no doubt this is a really exciting opportunity for the city and the GIB project

Team has been a great examplar for what can be achieved when everyone collaborates on the basis of their individual strengths and not just for individual benefit. It’s a model that sets a great precedent for other sectors.

The Edinburgh chamber of commerce has been especially helpful in spotting the opportunity, even before the bidding process was announced, and getting the ball rolling.

The Scottish low carbon Investment conference was another key foundation, one which demonstrates that individual initiatives can become self sustaining, and RBS is proud to have been the headline sponsor for the two conferences held so far.

The renewables and low carbon sector now needs stability in decision making.It’s clear that the green economy is an exciting growth area but it will take leadership and clear thinking to achieve what’s possible. Everyone recognises this prize is ultimately worth the effort.

robert Carr, president, edinburgh Chamber of Commerce; Chair of Anderson strathernThis investment is a triumph for Edinburgh

and has the potential to position us at the centre of European investment in renewable and low carbon technologies. What has been most impressive is the way in which a coalition of partners – business, political, private and public sector – developed some real momentum and applied their collective intelligence to the task. I am proud that Edinburgh chamber of commerce has been at the centre of the bid right from the start. This is a model that the chamber would like to see applied to investment opportunities in the future. It has worked in this instance – why not in other cases too?

We would be in favour of forming an Investment Task force, who would assemble as soon as we see an opportunity on the horizon. Its composition would vary according to the challenge – but what the GIB campaign has demonstrated is that there are some very capable people in the private and public sectors who are prepared to put their shoulder to the wheel for Edinburgh and Scotland.

paul Brewer, senior partner, edinburgh, pwCEdinburgh is home to a critical mass of entrepre-neurial talent, commercial skill, and both

corporate and public sector expertise that has fuelled the city’s recent economic success. The city must leverage the experience and perspectives inherent within this group to make sure Edinburgh as

a whole is on the front foot and shaped to compete in a globalised economy. The way in which local and national politicians came together with the chamber of commerce, Scottish Enterprise and a group of like minded private sector operators to build the successful case for GIB in Edinburgh was a tangible example of what this can achieve. The strong networks of pwc and others involved, the ability to mobilise fast and ‘just get it done’ attitude was key to securing GIB and this successful formula should be built upon for the future good of the city.

scott Black, director of fwBIn my view, the GIB working group was an effective public/private partnership because we were able to

focus on a clear prize that benefits everyone at a variety of levels. It wasn’t very difficult for all involved to work that out. I guess what was really interesting, was how the group evolved with people contributing what they could when they could.

I think this was a key feature in the success but the coordinating efforts of the Edinburgh chamber of commerce and Scottish financial Enterprise, together with the resources and expertise of Scottish Enterprise and Edinburgh city council were as fundamental to the outcome as the universal support of the business community.

tooraj Jamasb, Chair in energy economics, heriot-watt universityThe Working Group on the GIB has been an

excellent initiative. I have been very impressed by the commitment shown by everyone involved. members have been very generous with their time. many are senior people, but they each took on tasks. It has been a text book example of cross sector collaboration for a successful pitch.

looking at technology clusters internationally, we see that networks combining industry and business, good

“IT HaS BEEN a TEXT Book EXamplE of cRoSS SEcToR collaBoRaTIoN foR a SUccESSfUl pITcH.“

universities, proximity to government, and an active finance sector can be a winning formula. Innovative businesses see the value and are attracted to such networks. GIB has closed this virtuous circle for Edinburgh and the low carbon energy and economy.

We have all the ingredients here now to ensure Edinburgh becomes a hub for renewable energy industry and finance, not only in the Uk but also in the wider Europe.

We can now see more potential of even greater things happening here. There is momentum, but we need to support and ensure the success of the work of the GIB as it establishes itself and duplicate this model to new areas.

“THE aBIlITy To moBIlISE faST aND ‘JUST GET IT DoNE’ aTTITUDE WaS kEy To SEcURING GIB aND THIS SUccESSfUl foRmUla SHoUlD BE BUIlT UpoN foR THE fUTURE GooD of THE cITy.“

“WHaT THE GREEN INVESTmENT BaNk campaIGN HaS DEmoNSTRaTED IS THaT THERE aRE SomE VERy capaBlE pEoplE IN THE pRIVaTE aND pUBlIc SEcToRS WHo aRE pREpaRED To pUT THEIR SHoUlDER To THE WHEEl foR EDINBURGH aND ScoTlaND. “

greg ward, head of economic development, City of edinburgh CouncilIn January, the final business case was

submitted to the Uk Department for Business, Innovation and Skills, based on Edinburgh’s financial strength and rapidly developing clean energy hub. It was developed with the input and support of more than 25 organisations.

as the Business Secretary said, Edinburgh’s strengths will enable the bank to become a world leader in its field, supporting investment in a greener economy.

This achievement, in the face of competition from more than 30 other cities across the Uk, wouldn’t have been possible without the support of the Edinburgh business community, the Scottish Government, other Scottish councils and a range of organisations that have given their backing to the city’s bid. It shows what can be achieved through collaboration and establishes a fantastic precedent for future bids across all economic sectors.

<makING IT HappEN


THE GREEN INVESTmENT REVolUTIoN

The Bank represents a significant inward investment for Edinburgh and its internationally renowned financial sector. It will be capitalised with £3 billion to invest in low carbon and renewables projects, and is expected to leverage up to £200 billion of private investment into the sector by 2020.

High-quality jobs will be created in Edinburgh itself, supplemented by a transaction team who will be based in the city of london.

Edinburgh’s chamber of commerce gathered initial support among a coalition of private and public sector partners, including politicians of all parties.

Robert carr, president of Edinburgh chamber of commerce and chair of Edinburgh-based legal firm anderson Strathern, said: “This was a once-in-a-generation opportunity to position Edinburgh at the epicentre of Europe’s green energy revolution.”

In January, the city presented the final submission document to Uk ministers, based on submissions and support from more than 25 public sector organisations, academics, privately-run recruitment businesses, energy companies, asset managers, investment houses and advisers.

Sue Bruce, chief Executive of the city of Edinburgh council, said: “Edinburgh beat off competition with a compelling case based on many factors, including our strength in

financial services and in innovative green industries and technologies.

“our case – made and supported by a wide range of public and private partners – was also backed by other Scottish cities and councils. That support played a vital part in Edinburgh’s success. Very much in line with the underlying philosophy of the Scottish Government’s emerging cities strategy, they recognised that supporting Edinburgh could create the epicentre for something much bigger.”

from the outset, the city’s bid sought to raise the level of debate surrounding the choice of location. as the bank’s remit evolved, so did the city’s case, embracing the need to generate finance for green infrastructure, ranging from offshore wind through to waste projects, non-domestic energy efficiency and the Green Deal.

Dave anderson, Director of city Development, city of Edinburgh council, believes the bank will now position the city as the centre of green energy investment in Europe. “The Scottish Government’s recent award of ‘Enterprise area’ status to leith will also attract investors in offshore wind and other renewable technologies t o the city.”

owen kelly, chief Executive, Scottish financial Enterprise added: “The Uk Green Investment Bank (GIB) will be an enduring financial institution with a distinct identity

By autumn 2012, the Uk’s first Green

Investment Bank will be operational

from its new Edinburgh Headquarters.

poSITIVE paRTNERSHIpSThe Edinburgh Green Investment Bank Group put forward a compelling case to bring the Bank to Edinburgh, backed by an impressively broad range of interests from industry, academia and politics. It represents the perfect model for winning future investments and events.

Just prior to the bid announcement, The Scotsman, the Edinburgh-based national newspaper reported: “Whatever the outcome, the Edinburgh Green Investment Bank Group – whose members have been working together for more than a year – has the distinction of being an excellent example of public-private partnership.”

See Insight (page 14) to see how private and public sector partners plan to build on the success.

with its natural resources, technological prowess and strong policy support, scotland will play a pivotal role in achieving the uK’s target of generating 20% of energy consumed from renewable sources by 2020.

around half of the Uk’s total renewable energy capacity is situated in and around Scotland and a sizeable industry has already emerged in support of the green economy in all its forms. This will offer the new Green Investment Bank many investment opportunities on its own doorstep.

Scotland is an international centre of excellence in energy technology and deployment. Trade body, Scottish Renewables, highlights a £46 billion pipeline of Scottish renewables projects. These have the potential to generate 17GW of electricity.

Edinburgh is already home to leading sector academics and research centres, such as the new Industrial Doctorate centre in offshore Renewable Energy (IDcoRE). It forms a key part of the Energy Technologies Institute’s (ETI) marine and offshore Wind programme, which is a priority area for the GIB.

While offshore development activity is progressing across the Uk, the strongest concentration of skills is situated close to Edinburgh – including R&D, supply chain, potential turbine manufacturing and installation.

This cluster will expand as development in the northern offshore

leases gathers momentum and recent arrivals to the Edinburgh city Region include:• mitsubishi power systems europe.

It will invest up to £100m in a new centre for advanced Technology in Edinburgh, for research and development into offshore wind turbine technology. mpSE has also acquired the University of Edinburgh spin out company artemis Intelligent power, which has been working on leading edge technology in the offshore wind sector.

• enercon. The global wind turbine manufacturer is managing its Uk sales and project management operations from Edinburgh.

• swedpower/pöyry. The largest energy consulting company in Scandinavia has opened an office for wind and ocean power.

Growth across Scotland’s renewable energy sector is projected to grow in value in 2012, in the face of economic uncertainty. In a report published in January, pricewaterhousecoopers (pwc), said while the number of deals in Europe fell by 6% last year, their overall value rose from £10bn to £19bn.

Since the launch of the Scottish Government’s zero Waste policy, there has also been a substantial acceleration in the waste management market within Scotland and currently four major projects are in procurement, with a further five to seven likely to come to procurement over the next two years.

• The Scottish Energy Centre at Edinburgh Napier University has a pre-eminent record in the development of renewable energy systems and sustainable design in construction.

• Edinburgh is home to the Scottish financial Risk academy, the Uk’s first partnership between industry and academia established to investigate quantitative financial risk management.

• The Edinburgh Centre for Carbon Innovation fosters collaborative working between policy, community and business leaders to support and

deliver workable solutions for a low carbon future. The centre is supported and hosted by the University of Edinburgh, Edinburgh Napier University and Heriot-Watt University.

• The University of Edinburgh’s MSc in carbon management is designed to create the next generation of carbon managers, auditors and expert advisors.

In this unequalled environment, the Green Investment Bank has the greatest potential to unlock further opportunities for the Uk’s low carbon economy.

GIB aNNoUNcEmENT RENEWS INTEREST IN loW caRBoN EcoNomy

Capital capabilities

why edinburgh? announcing the decision to locate the GIB in Edinburgh, the Uk Department for Business, Innovation and Skills (BIS) cited the city’s:

• ability to recruit and retain key staff.

• quality of the transaction ecosystem, which will give GIB a greater economic impact at a Uk level. This in turn will help the Uk Government to deliver its low carbon objectives.

• cost effectiveness.

• domestic and international transport links and world class IcT links.

The city of Edinburgh council guaranteed the GIB its first three years’ accommodation in Edinburgh on a rent-free basis.

facT fIlE

that can mobilise significant additional finance into green infrastructure projects. It will accelerate the transition to a low carbon economy and provide a return on capital employed into the Bank.

“Edinburgh is the only location in the Uk that brings together both finance and the clean energy industry in a single location. It has an unrivalled concentration of industry skills and experience.”

the decision to base the bank in edinburgh, announced in march by vince Cable, the uK Business secretary, marked the end of a year-long process to fix on the best base for the new investment agency.

e: [email protected]

further informAtion

<THESTaTISTIcS

18 invest edinBurgh | JaNUaRy To maRcH 2012 | | JaNUaRy To maRcH 2012 | invest edinBurgh 19

[i] Comparator cities are Birmingham, Bristol, Cardiff, Glasgow, Leeds, Liverpool, Manchester, Newcastle and Nottingham. follow the council’s Strategy & Research linkedIn Group

to keep informed about latest findings/surveys

ftse Aim ALL shAreHavelock Europa plc 12.0 13.3 -6.6Bowleven plc 69.9 96.4 -6.63craneware 515.0 410.6 -11.6cupid ltd 200.0 204.0 -5.36Dawson International plc 1.3 1.4 -10.7IndigoVision Group plc 323.0 394.1 102.8omega Diagnostics Group plc 10.4 10.3 -17.3

mAJor investment trust CompAniesaberforth Smaller companies Trust 515.0 633.6 1.0caledonian Trust 99.4 99.4 0.5Edinburgh Dragon Trust 225.8 246.2 10.2Edinburgh Investment Trust 482.0 499.3 39.9Edinburgh US Tracker Trust 647.5 691.0 16.3Scottish american Investment Trust 210.0 227.0 3.4The Scottish Investment Trust plc 458.0 484.9 7.7Scottish mortgage Investment Trust plc 592.4 704.1 1.8

ftse smALL CApJohn menzies plc 525.5 596.0 11.8melrose Resources 121.5 123.0 4.2optos plc 218.5 238.4 52.8Wolfson microelectronics plc 127.5 186.7 -3.8

in January 2012, dtZ research – a market research firm focusing on the property market – predicted a pick up in prime rents in edinburgh city centre in 2013.

other highlights in the report included:

• Prime office yields held steady at 6.0% for Q4 2011.

• Take-up in the city centre stood at 4,180.5m2 in Q4 2011.

• Four Grade A lettings took place in Q4 2011, totaling 1,672m2s

• Avaloq’s lease of 1,997m2 at Tanfield of was the largest deal of Q4, 2011.

• The major influences on the property market in the city in 2012 are likely to be bank-led sales and occupier sentiment.

• City centre availability has increased but Grade a space is becoming rarer, despite Edinburgh being the only city outwith london where speculative Grade a development is underway. This 17,744m2 development – Site HI – has been renamed atria Edinburgh and should be completed in Q1 2013.

• Typical prime rents in the city centre stood at £27.50 per sq ft as at December 2011.

• Overeas investors, particularly the German funds, are still targeting larger prime assets in regional markets where there are higher income yields on offer than properties in the South East, and Deka acquired Edinburgh one.

edinBurgh foreCAst

% of foreigners visiting edinBurgh in Q4/2011

edinBurgh CompAny index - shAre priCe CompArison (penCe)ftse 100 03/01/12 29/03/12 % changeRoyal Bank of Scotland Group 21.0 28.36 -2.9Standard life plc 205.5 227.5 7.0cairn Energy 268.3 329.4 2.0

ftse 250murray International Trust 952.5 999.0 12.8

ftse fLedgLing indexJohnston press plc 6.9 6.2 46.4

The DTZ Research report– ‘Property Times Edinburgh Q4 2011 – is not presented as a basis for entering into transactions. Investors should seek specific, qualified, professional advice.

Quarterly take-up by grade: DTZ Research

In the last quarter of 2011, the number of Germans visiting Edinburgh was almost as high as the number of americans, the Edinburgh Visitor Survey conducted by lynn Jones Research ltd reveals. Before 2010, the number of americans was almost twice as high as the number of Germans.

These results reflect a few trends: firstly, consumer confidence in the US is lower than it was before the global economic crisis; Germany’s economy, however, is

performing well which results in more visitors. Secondly, the majority of overseas tourists visiting Edinburgh are travelling with low-cost carriers. Ryanair, Easyjet, etc. are flying to ever more destinations in Europe in general and Germany in particular.

for businesses working in the tourism sector, the latest results suggest preparing for further visitors who come to Edinburgh for a city break; moreover, the findings suggest that the consumer is becoming more price sensitive, so value for money will be important.

Q4/2011 % Foreigners visiting Edinburgh

other

0

3000

6000

9000

12000

15000

Grade CGrade BGrade A

2011 Q42011 Q32011 Q22011 Q1

1 Office of National Statistics2 General Register Office for Scotland3 National Records of Scotland4 Scottish Corporate Sector Statistics (2010)5 Valuation Office Agency6 Edinburgh Solicitors Property Centre

sOurces 7 Edinburgh Airport/(BBA)8 Office of Rail Regulation9 STR Global10 VisitScotland 11 International Congress and

Convention Association12 Scottish Government

13 The City of Edinburgh Council14 Scottish Retail Consortium15 British Retail Consortium16 Lynn Jones Research17 Scotland’s Global

Connections Survey 200918 Register of Scotland

19 Land Registry (English & Welsh Cities)20 Department of Work and Pensions21 Jobcentre Plus22 Business Gateway23 FAME24 FDI Markets

AnnuAL stAtistiCAL overview

popuLAtion & househoLds LAtest

Total population, Edinburgh [3] 486,120

Total population, City Region [3] 1,608,490

Households, Edinburgh [3] 220,195

Households, City Region [3] 714,334

Net in-migration, Edinburgh [3] 7,728

Net in-migration, City Region [3] 12,027

LABour suppLy And mArKet LAtest

Number of people aged 16-64 [12] 344,400

... of which economically active [12] 74%

... in full-time employment [12] 52%

... in part-time employment [12] 4%

Self-employed [12] 10%

Unemployed and seeking work [12] 8%

empLoyee JoBs By industry LAtest

Managers and senior officials [1] 17%

Professionals [1] 19%

Associate professionals and technical occ. [1] 16%

Administrative and secretarial [1] 12%

Skilled trades [1] 7%

Personal services [1] 8%

gvA Added of edinBurgh (£m) LAtest

Financial and insurance activities [1] £4,648

Public administration; education; health [1] £3,519

Distribution; transport; accomodation and food [1] £2,136

Business service activities [1] £1,800

Real estate activities [1] £1,112

Production [1] £1,111

tourism in edinBurgh LAtest

Visits to Edinburgh (000s) [10] 3,267

Nights stayed in Edinburgh (000s) [10] 12,030

Average nights stayed in Edinburgh [10] 3.7

Expenditure (£M) [10] £1,015

Average expenditure per visit [10] £311

Annual Airport Passenger volume [7] 9,386,082

registered enterprises in edinBurgh LAtest

Professional, scientific and technical activities [4] 3,290

Wholesale, retail and repair [4] 2,495

Information and communication [4] 1,605

Accommodation and food services [4] 1,400

Construction [4] 1,340

Administrative and support service activities [4] 1,075

Average gross annual earnings per resident in major UK cities (2011) [1]

LAtest trends

tourism Q4/2011

Airport Passengers [7] 2,102,540

% Annual Change 7.9%

Hotel Occupancy [9] 74.6%


Revenue per available room [9] £51.51

% Annual Change -2.3%

retAiL Q4/2011

Footfall (number of pedestrians in city centre) [13] 6,315,560

Annual change -3.40%

Sales (Edinburgh) % change on Q4 2010 [13] -4.3%

Sales (Scotland) % change on Q4 2010 [14] 0.1%

Sales (UK) % change on Q4 2010 [15] 1.6%

UK Average Consumer Price Index [1] 4.7%

LABour mArKet Q4/2011

Jobseeker’s Allowance Claimant Count* [20] 11,142


Jobseeker’s Allowance Claimant Rate* [20] 3.2%


Vacancies advertised by Jobcentre Plus* [21] 3,910


housing Q3/2011

Average House Prices [18] £225,272

% Annual Change [18] -1.4%

House Sales [18] 2,195


Average house sales comparator cities [19] [i] 1,474


Business Q4/2011

Business Start Ups [22] 286


New Incorporations [23] 1,214

% Annual Change [23] 30.3%

Foreign Direct Investment Projects [24] 7

% Annual Change [24] 75%

sCottish/uK gdp Q3/2011

Total Gross Value Added, Scotland [12] 0.5%

Total Gross Value Added, UK [1] 0.5%

Services Sector, Scotland [12] 0.9%

Services Sector, UK [1] 0.7%

Construction Sector, Scotland [12] -1.2%

Construction Sector, UK [1] -0.6%

Gross value added per resident in major UK cities (2009)

Q4/2011 v Q4/2010 % change

For more annual statistical information see www.edinburgh.gov.uk/edinburghbynumbers

For monthly updates on Edinburgh’s Economy see ‘Essential Trends’ and ‘Edinburgh Economy Watch’

House sales in Edinburgh

Q4/2011 Claimant Rates [ii]

*monthly average

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Av. prime city centre retail rents in major UK cities (2011) [5]

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all RIGHTS RESERVED. maTERIal coNTaINED IN THIS pUBlIcaTIoN may NoT BE REpRoDUcED, IN WHolE oR IN paRT, WITHoUT pRIoR pERmISSIoN of THE cITy of EDINBURGH coUNcIl (oR oTHER copyRIGHT oWNERS). WHIlST EVERy EffoRT IS maDE To ENSURE THaT THE INfoRmaTIoN GIVEN HEREIN IS accURaTE, No lEGal RESpoNSIBIlITy IS accEpTED foR aNy ERRoRS, omISSIoNS oR mISlEaDING STaTEmENTS.

IN BRIEf...

WoRkING aGE RESIDENTS By HIGHEST QUalIfIcaTIoN

Under- or postgraduate Degree/ professional Qualifications** 37%HNc/Diploma 8%Higher (Secondary School) 18%

Total number in employment 246,400

SEE oVERlEaf foR moRE STaTISTIcS...

accESS To maRkETS city population 2000 448,4302010 486,1202020 514,065

Edinburgh airport passengers (2011) 9.4 m

Train passengers (Waverley Station, 2010) 19.3m

customers within city Region 1.6m

cITy WoRkfoRcE By occUpaTIoNmanagers and senior officials 17%professionals 19%associate professionals and technical operations 16%administrative and secretarial 12%Skilled trades 7%personal services 8%Sales and customer service 9%process, plant and machine operatives 4%Elementary occupations 8%

* Source: Edinburgh by Numbers march 2012 ** Scottish Goverment Household Survey 2011.

EDINBURGH’S SofT laNDING SERVIcE foR INVESToRS

WHERE EDINBURGH ScoRES* Edinburgh has the highest proportion of working age residents with a degree or higher, among cities in the Uk – source Office National Statistics.

invest edinburgh (april- june 2012)

Documents

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sound investment

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