Between £72.5bn and £100bn will struggle to be refinanced

No-one willing to lend against a spec office development

Widespread concern re FSA’s ‘slotting’ policy

Debt held against UK commercial property continued to fall last year – from £228.1bn to £212.3bn, a drop of 6.8% – the UK’s largest property lending survey reveals.

The influential UK Commercial Property Lending Market report by De Montfort University found that, while the overall level of debt is on a downward trajectory and progress has been made in dealing with the distressed legacy debt, there is a long way to go. 

Between £72.5bn and £100bn will struggle to be refinanced on current market terms when the debt matures, as it has an LTV of over 70%.

The survey of 72 lending teams from 63 banks and other lending organisations found that, while 2011 started with a degree of optimism for the commercial property lending market, including the first Commercial Mortgage-Backed Securities (CMBS) issue since 2007, this changed dramatically during the second half of the year as the crisis surrounding the Eurozone and the sovereign debt of member states brought “extremely tough times” to the economy.

Opinion: Derek Gammage, MD CBRE Hotels EMEA, comments on US-based funds deploying into Europe . . .

‘We have always liked Europe - especially a Europe on its knees’

‘Despite mish mash of member states the opportunities are exceptional’

‘We’ll see a huge influx of US capital into European real estate’

It is really hard to envisage the sea change we have seen here in Europe over the past two or three months. 

It would be no exaggeration to say that a phone call (and by phone call I mean a properly coordinated conference call with a cast of many) is now taking place almost daily. 

Set up in every case by US-based funds, in most instances by those unknown to us in Europe (albeit clearly well known to our US teams), they are ostensibly to 'investigate' the hotel buying opportunities for US -based funds to deploy into Europe.

The general mood - rightly or wrongly - seems to be that we (US  funds) aren't seeing much deal flow in the home markets, cannot deploy into Asia as the locals are better funded, and we have always liked Europe - especially a Europe on its knees.

Surveying firm Graham and Sibbald has secured a lease on 8800 sq ft of industrial space at Inveralmond Industrial Estate, the premier industrial location within the city.

Acting on behalf of a private landlord, Graham + Sibbald has Let Unit 2-3, Lawgrove, on the estate, for 10 years with an initial rent of £30,000 per annum.

The new tenant is Euro Car Part, one of the UK’s largest providers of car parts with 100 branches across the UK.

Garth Davison, commercial surveyor at Graham and Sibbald said: “This deal shows that there is still an on-going appetite for larger units in Perth and that Inveralmond remains a popular location for the national operators.”

Image: Inveralmond Industrial Estate

Brian Berry of the Federation of Master Builders, argues that the damage arising from VAT on listed building alterations will extend far beyond listed churches:

Until the Government drops its plans to add 20% VAT to listed building alterations from 1^st October, the UK’s heritage is still at risk. 

On the day the consultation on this VAT increase closes, the Federation of Master Builders (FMB) wants the Government to look beyond churches and recognise the value of all listed buildings.  

The Government has announced £30 million to help listed places of worship pay the VAT on their repairs and alterations. This is welcome news, but no one with an interest in seeing the continued use of all of our historic buildings will be satisfied with this step. 

Private owners and charities hit

Removing the zero rate of VAT on alterations to listed buildings in such a short timescale will add significantly to the existing financial burdens on private owners and charities that look after our cherished heritage.

Image: Brian Berry, Federation of Master Builders

Aberdeen hotels outperform rest of Scotland

Statistics reveal fragility of Scotland's hotel sector

'Imposing a tax on an empty room will not raise much revenue'

Occupancy and revenue fell in Scottish hotels during March compared with the rest of the UK, according to the latest report by accountants and business advisers PKF. 

The firm’s monthly hotel survey found that occupancy in Scotland fell by 0.1% during March (when Scotland had the lowest occupancy figure of 66.6% of any part of the UK).

In contrast, the average for UK regions was an increase of 2.7%; up 1.3% in England; and up 7.4% in Wales. 

Image: "Glasgow's hotels fared well during March" 

A £19.3 million development project to transform two 19th century Kintyre hotels is now complete, promising vital economic benefits for the area.

U.S. firm Southworth Development awarded Graham Construction the £5.8m contract to overhaul of The Royal Hotel in Campbeltown and The Ugadale in Machrihanish. 

Both hotels are close to the famous Machrihanish Golf Club and are expected to add £3m to the local economy annually. 

Situated on the main road in Campbeltown, the four-storey Royal Hotel was built in 1898 and given a two-storey extension late last century. 

Graham Construction stripped the old building back to its shell and rebuilt from within, using sympathetic modernisation techniques and bringing the whole hotel up to four storeys.

Image: The refurbished Royal Hotel, Campbeltown

Glasgow-based construction firm City Building has been confirmed as a headline sponsor for the 22^nd ‘International Association of People – Environment Studies’(IAPS) Conference.

Focusing on the future of the built and natural environment, the event is expected to attract around 400 delegates from over 50 countries to the city. The conference is being held at the University of Strathclyde’s John Anderson Campus from 24 – 29 June.

IAPS will explore human behaviour and experience in both the built and natural environments – concentrating on the relationship between research, practice and policy and their impact on socially and environmentally sustainable development.

The conference brings together some of the world’s most influential specifiers, planners and decision-makers. It aims help to shape the future of the built and natural environment in the UK and EU.

At the regional British Council for Offices (BCO) awards, the new Scottish Qualifications Authority (SQA) HQ building has been announced as the Scottish judges' nominee for the national Innovation category. 

As a result, the SQA building – located at Shawfair, near Dalkeith – will progress to the national awards this October. 

The developer, Buccleuch Property, was praised for delivering the building at low cost and in a short timeframe, while working with multiple partners. The Innovation category recognises significant innovation in one or more fields, such as sustainability, information and communications technology, lighting, procurement, social programme, mixed use and regeneration.

Nominees for the national category are chosen by the regional judges and the winner announced at the National Awards Dinner. 

Image: SQA's new HQ, Dalkeith.

More than 30 development and investment specialists attended a briefing detailing the opportunities arising from the creation of an Enterprise Area in Irvine.

The event, organised by Irvine Bay Regeneration Company, was held at the Malmaison Hotel in Glasgow. It attracted senior people from key organisations within both the public and private sector, including developers, agents, investors and the Scottish Government.

Patrick Wiggins, Chief Executive of Irvine Bay, said: “We have had a number of very useful  briefing meetings for the industry over the past 2-3 years. 

Clinton Cards and Birthdays outlets likely to be closed within the next few days include Braehead, Glasgow Argyle Street and Edinburgh Princes Street, according to Property Week. 

A list of 345 stores deemed ‘non-core’, which is expected to form the basis of the stores to be closed next week, has been published today (May 17) by Property Week.

Administrators at Zolfo Cooper announced last night that they would be closing 350 stores across the UK, starting next week, after deeming the retailer’s portfolio of 784 stores “an untenable retail estate”.

Full story here

Property Week's list of 40 Scottish stores said to be non-core comprises:

• Airdrie 

• Ayr - High Street 

• Bellshill - Main Street 

click link below for full list 

The Glasgow Office Agents Society (GOAS) held its first event of 2012 on Friday 11^th of May in the city’s Capella building, with more than 20 office agents attending.

The event, a collaboration between MacRoberts, Haa Design, Atelier Ten and Capella’s owners, featured speeches from Gillian Stewart from Haa Design on “Office space – understanding tenants’ space demand’ and Bill Richie of Atelier Ten who discussed ‘Legislation and the demise of BREEAM and EPCs’. 

GOAS is keen to increase its activity and presence this year, according to Committee members Gillian Giles of Cushman & Wakefield and Alistair Reid of Jones Lang LaSalle. They are currently looking for a third committee member to fill a vacancy on the board.

Image: Gillian Giles, ''positive feedback for first event of 2012'

Highcross has sold the leasehold interest in Aberdeen’s 124,000 sq ft Murcar Industrial Estate for £8.28m. The estate was sold in an off-market transaction to a client of CBRE Global Investors.

Murcar Industrial Estate is located in the city’s Denmore Road, Bridge of Don. The estate includes two office/industrial facilities and an estate of eight terraced industrial units. 

It was bought by Highcross in July last year, as part of a £20m portfolio of industrial and office properties across Scotland. Key occupiers include Fugro Survey and Sparrows Offshore. 

Since acquiring the properties, Highcross has re-geared existing leases and let the remaining available space to Mark Group, an energy saving business, at a new headline rent of £8 per sq ft. The sale reflects an initial yield of 8.4%.

Image: Murcar Industrial Estate

Investment opportunities remain despite gloomy market

UK invested stock declined by 1% to GBP 537 billion in 2011

Investment volumes in Scotland reached 30% of 2007 peak

Over 100 property professionals attended DTZ’s flagship Money into Property 2012 event, staged at Edinburgh’s Balmoral Hotel this morning (May 16^th). 

The launch of the Money into Property report was followed by ‘The Property Debate’. Chaired by Stewart McIntosh, editor of Compropscotland.com, a panel of property professionals fielded questions from the audience and debated the state of play in the international investment market.

Image: Alan Macbeth, DTZ, 'The banks are continuing to deleverage from property in Scotland'

Glasgow’s Argyll Arcade has been commended in this year’s Royal Institution of Chartered Surveyors (RICS) Scotland Awards.

The competition recognises the achievements of land, property and construction professionals in four categories – Design and Innovation, Building Conservation, Regeneration and Community Benefit.

Argyll Arcade was acknowledged in the Building Conservation category following a £750,000 two-year conservation project, managed by Jones Lang LaSalle’s building surveying team. 

Dating back to 1827 the L-shaped arcade is one of the world’s oldest covered shopping malls – notable for its ornate cast iron hammer-beam roof trusses, which support a magnificent glazed roof. 

Image: Argyll Arcade, 'One of the city’s most treasured buildings'

Miranda Singleton, a student at Glasgow University’s School of Engineering, has been named as one of Scotland’s top property students.

Studying Civil Engineering with Architecture, Miranda has taken the Association of Women in Property’s (WiP) Central Scotland title.

She will now represent her region at the National Final, which takes place in London on 18^th September.  She was named as the winner during a presentation held at the Glasgow office of legal firm Anderson Strathern.

Jane Meneely of Glasgow-based Hypostyle Architects, who chairs WiP’s Central Scotland branch, said, “The National Student Awards are now in their sixth year and have become a firm fixture on the industry and education calendar.  

Image: Award-winning Miranda Singleton with tutor, David Boyce

Photographer: Tom Manley Photography

April sales collapse worst since 1999

Big drops in footfall – increases retail administrations

 UK sales growth beat Scotland’s for 13^th month in a row

Total retail sales in April were 4.1% down on April 2011, when they had risen 5.5%, says the latest SRC/KPMG Scottish Retail Sales Monitor.

Like-for-like sales were 5.2% lower than a year ago, when they had risen 3.4%. On both measures, April's declines were the worst since the survey began in 1999.

The changing timing of Easter makes analysis difficult for the months of March and April. April 2012 compares with a very strong April 2011, which included all four days of Easter – compared with only two in April 2010.

One of the world’s largest real estate research events is to be hosted in Edinburgh this summer, when the European Real Estate Society (ERES) brings its 19^th annual conference to the city. 

The conference will be held from the 13 to 16 June, 2012, at the Appleton Tower on the University of Edinburgh campus. For 2012, the event is being organised and chaired by Heriot Watt University’s Institute for Housing, Urban and Real Estate Research. T

The conference is being run in conjunction with Nottingham Trent University and is expected to attract academics and property practitioners from around the globe.

Image: David Hunter, "A great coup for Scotland to be holding such a prestigious conference"

The value of commercial property sales in Scotland plunged by 40% during the first three months of this year. 

Confidence was crushed by fears of a UK double dip recession, combined with the Scottish Government’s planned increase in empty property rates. As a result, the value of sales plummeted by £235m to £355 in Q1. The total volume of sales was down by 20%.

Despite a relatively stable performance in the last quarter of 2011, the figures reflect another downturn for the commercial property industry. 

The results support recent research by the Investment Property Databank (IPD), revealing a renewed downturn in commercial property values. 

Image, David Melhuish: 'This isn’t the time to increase tax on unproductive premises.”

Leases signed in 2011 averaged 4.8 years

Lettings to SMEs average 4.1 years

Rent frees commonplace on short leases

The largest independent study of commercial property tenancies reveals a fall in lease lengths to a new low of 4.8 years on average, as landlords work in step with tenant requirements, according to the BPF/IPD annual lease review (British Property Federation / Investment Property Databank). 

A polarised market has developed over the past year, with some long term deals on prime property – while other occupiers opt for a short term stop gap, rather than medium term leases. 

The annual BPF/IPD study, which claims to be the property industry’s ‘global benchmarking metric’, found that 76% of new leases signed in 2011 were for less than five years. 

Construction bosses seek funding reassurance from ministers

Highland construction bosses will seek urgent clarification on the future funding to be committed to affordable housing across the region, when they meet Scottish Government ministers in Inverness today (Monday, 14^th May 2012).

Last week, the Scottish Government announced plans to allocate almost £20 million of funding for affordable homes to Highland Council over the next three years.

The Scottish Building Federation (SBF) welcomes the announcement, but points to separate figures showing that Highland Council invested £129 million in housebuilding over the past four years. 

Steel Engineering, the largest steel fabricator in the West of Scotland, is expanding its operations at Westway Park in Renfrew, which is owned by the Moorfield Group.

Steel Engineering has agreed terms to occupy 70,000 sq ft at Block G and will also utilise Westway’s dock facility on the White Cart. This is in addition to the 100,000 sq ft the company already leases at Block F. 

Donald Simpson, of Cowiesburn Asset Management, calls on the Scottish Government to drop its ‘tax on distress’

I couldn’t agree more with the CBI Scotland in their response to the Scottish Government’s proposals to reduce business rates discounts for vacant commercial properties.

This is not the first time that vacant rates relief has been cut with the aim of getting properties occupied – most recently this was done south of the border in 2008.

Image: Donald Simpson, 'some councils and property owners demolished buildings rather than pay full rates'

Opinion: Lisa Dean of Colliers research and forecasting division highlights a hazard of the March 2012 budget:

Impractical policy clumsily implemented

Big name investment companies pulling out of deals

Tax could apply to shares in residential holdings from April 2013

The Stamp Duty Land Tax (SDLT) increases announced by the government in the March 2012 budget are expected to impact on the residential market, especially London’s. 

The changes were announced to curb the use of offshore companies to buy residential properties worth £2m or more. It is unclear how these changes will affect the residential market in terms of property values and transaction levels. 

The government has come under significant scrutiny for a policy which many believe is impractical and clumsily implemented. 

Regional office take-up reached 909,000 sq ft in Q1 2012

Edinburgh take-up strongest for over two years

Prevalence of grade B deals driven by opportunistic mid-sized professional firms

A number of large deals in key regional cities – including Edinburgh, Glasgow – led to a small increase in the aggregate amount of regional office take-up in Q1 2012 to 909,000 sq ft.

Despite the increase, take-up remains below the quarterly average, according to DTZ’s latest UK Regional Offices Property Times report.

Following the trend over the last 12 months, most of the deals were on grade B properties. Grade A transactions are no longer dominant, echoing the market in 2008 to 2010. 

Image: Mark Jones, DTZ– 'incentives will swing in landlord’s favour before year end' 

Swap contracts affecting lenders’ real estate work out strategies 

Historically low interest rates across Europe driving swap breakage costs

The cost of breaking swaps contracts taken out by real estate investors who borrowed in Euros at the peak of the property market in 2006/07 has increased substantially, according to an analysis by real estate advisor CBRE.

Created as a hedging instrument, swaps were intended to protect real estate loans with high LTV ratios, which typically have low interest rate cover, against interest rate rises. However, as the financial crisis drove interest rates down to unprecedentedly low levels, these instruments have become increasing burdens on investors wishing to sell their properties, affecting willingness to sell and, in the case of potential distressed sales, the recovery of value to lenders.

Image - Doug Smith, CBRE: 'Swap instruments becoming a burden on investors and, potentially, lenders'

M80 completion unlocks new distribution axis

Hambalt Limited has purchased Unit 2, Axis Park in Cumbernauld’s Westfield Industrial area. of Cumbernauld.

In a deal worth £1.92m, Jones Lang LaSalle sold the 26,447 sq ft purpose-built cross dock distribution unit for Keiller.

Located in Orchardton Road, the property is let to DSG Retail until February 2023 on a Full Repairing and Insuring basis.

The purchasers, Hambalt, will benefit from a net initial yield of 8.33% per annum – increasing to 9.66% in February 2013, following a geared rent review.

Image: £1.92m unit at Axis Park, Cumbernauld

The Association of Women In Property’s (WiP) Central Scotland Branch will announce its regional winner tonight ((May 10^th) at the 6^th National Student Awards Evening.  

Branch chairman Jane Meneely of Hypostyle architects said: “We are delighted at the high calibre of students being put forward for this award. This can only bode well for the future generations of women in the property and construction industry.”

The evening will be combined with a wine tasting event, facilitated by Inverarity who will provide a selection of wines to kick start the evening.  

The National Student Awards were launched to celebrate the wealth of talent, enthusiasm and ambition coming into the industry through the Universities. 

Prospects for the Edinburgh office market have improved significantly in Q1 2012, according to property consultant GVA.

There was an average level of take-up in Q1 in what is traditionally the slowest quarter of the year and, with a healthy number of requirements, GVA is confident of increased activity in Q2 and Q3.

According to GVA’s quarterly Big Nine review of the regional office occupier markets, take-up in Edinburgh was significantly above the quarterly average, with the largest deal a 47,800 sq ft pre-let to Brewin Dolphin at Atria 1.

Activity in Edinburgh city centre continues to dominate over the out-of-town market as quality accommodation is available with sizeable incentives. 

Image: Atria building, Edinburgh

Recent Environment Agency approval for 'Fracking' gives a Green Light to energy companies and landowners, who should register their Mineral and Manorial Rights now, says accountancy firm Saffery Champness

The announcement by the Environmental Agency, effectively approving the controversial process of 'fracking' for shale gas, means that energy companies are now seeking suitable land for exploration.

Andrew Arnott, a partner of Saffery Champness Landed Estates & Rural Business Group, said: "Already energy companies are actively drilling in Central Scotland, North East England and there are other potential sites in Northern Ireland, the East Midlands and part of Wales. 

Image: Fracking rig in Germany

Cash flow crisis worsened by clients’ difficulties in paying bills

Corporate Advisory and Restructuring specialists Zolfo Cooper have been appointed Joint Administrators over UBC Holdings Limited, UBC Group Limited, UBC Homes Limited, Wyvis Building Services Limited, Wyvis Roofing Limited, Mardon Project Services Limited, UBC Central Limited and UBC East Limited (together the Group).

The Uist-based group is a privately owned building and civil engineering company operating throughout Scotland and trading as UBC Group, 

Business turnover totaled approximately £31 million and the firm employs 277 permanent members of staff, operating from premises in Inverness, Glasgow, Dundee, Bathgate, Stornoway and South Uist.

The Cruden Group has achieved triple success at this year’s Homes For Scotland Awards, picking up the ‘Home Builder of the Year 2012’ accolade, as well as a further two category awards.

More than 700 industry representatives in attendance at the high-profile awards ceremony, billed as the premier event in the Scottish home building industry’s calendar, voted The Cruden Group ‘Home Builder of the Year.’

The judges commented that Cruden demonstrated a number of impressive traits including:

• Effective partnership working with the public sector to make a significant contribution to meet housing and regeneration needs
• A forward-thinking approach to home building and the design process
• A commitment to creating and sustaining jobs through the implementation of affordable homes
• The promise to address the needs of individual customers via a range of customer focused systems
• The drive to reach out to the first time buyer market through a sustained campaign of press and radio activity

Image: The Melrose at The Crescent, Cruden's award-winning three bedroom terraced home at Govan Gateway, Glasgow

Sandwich chain Pret A Manger has opened its second Aberdeen outlet and its eighth in Scotland.

Pret’s existing branch in Bon Accord shopping centre has been joined by a 2000 sq ft unit at 234 Union Street, after the company agreed a long term lease based approximately on the asking rent of £60,000 per year.

The prime site is located on the ground floor of the Caledonian House office building and was formerly occupied by Peckham’s.

Richard Noble, director of FG Burnett, which acted on behalf of the sandwich group, said: “Pret A Manger is a high value addition to Union Street’s retail offering and follows on the success of the company’s existing site in the Bon Accord centre.

Dr Mark Robertson, Ryden’s research chief, surveys the outlook for Scotland’s commercial property markets:

Scotland’s retail market showing signs of stress

Aberdeen industrials outperform rest of the country

Glasgow’s office take-up increases by 13% to 31,800 sq m

According to recent forecasts, economic recovery is once again postponed until next year. The Central Scotland office and industrial markets remain active, but are failing to build any momentum. The post-recession challenges of the retail sector are becoming evident in higher vacancies and lower rents.  

Exceptionally, the Aberdeen markets are actually accelerating from their already strong positions.  Investment trading continues to be limited and highly selective, with the prospect of further price polarisation between prime and non-prime assets. 

The outlook is for the market to remain in low-level equilibrium. Weak economic growth is dragging on demand.  Supply continues to be constrained by risk-averse investors and a bank funding drought.  

Stuart Johnston of DM Hall reports on a 'restricted' investment market:

Investment transaction volumes remained subdued throughout 2011, largely as a consequence of the limited supply of quality well-let stock, the restricted availability of debt, and continued economic uncertainty.

There remains little depth to the market, with active purchasers largely comprising institutional investors and cash buyers. The majority of UK lending institutions have little or no appetite for property, as many continue to de-leverage their existing property books.

Despite this, there does remain strong demand for prime, well-let stock, on leases in excess of 10 years to strong covenants with fixed rental uplifts. 

Image: Stuart Johnston, DM Hall, 'availability of bank debt unlikely to improve'

The (gentle) rise in residential prices during the first three months of this year faltered in April, pushing prices lower, according to the latest RICS UK Housing Market survey (7 May 2012).

Across the UK, 19 percent more chartered surveyors reported falls rather than rises in house prices. To add to the gloom, expectations for future prices reached their lowest level this year, with a net balance of 17 percent more respondents predicting further drops (from -3 percent).

Demand from potential buyers was also relatively flat during April, as five percent more surveyors reported increases rather than decreases in new buyer enquiries (from +10 percent in March). 

Meanwhile new instructions, a good indicator of supply coming onto the housing market, was once again stable as one percent more respondents reported falls rather than rises in new homes coming up for sale. 

In what could be a boost for the industrial property sector, business sentiment among the UK’s small and medium-sized (SME) manufacturers rose for the first time since mid-2011. 

Orders and production are expected to grow solidly over the next quarter.

In the CBI’s latest quarterly SME Trends Survey, which had 356 respondents, a balance of +22% said they were more optimistic regarding the business situation in the three months to April. 

This figure represents the first rise in sentiment in a year (+12% in April 2011).

UK commercial property now in double dip

Deepest drop in property values on record

Scotland’s industrial sector clawing its way back to recovery?

The UK’s commercial property values went down for the second quarter in a row during Q1 2012 (by -0.7%), according to Investment Property Databank (IPD).

The fall marks the onset of a double dip and a return to negative growth after the deepest decline of property values on record. Values remain 31% below 2007 levels, piling further pressure on those seeking to refinance loans now in negative equity. 

Nearly £300 billion of debt is secured against UK commercial property, of which £114 billion cannot be re-financed on current terms, according to the influential 2011 De Montfort Survey of bank lending. It adds that over 40% of loans are at loan to value (LTV) of 80% or more. 

Image: Aberdeen's Forties Industrial Estate, 'Scottish industrials up by 8.7%'

Scotland’s business failure rate is 40% higher than England’s and Wales’, according to insolvency trade body R3. 

The rate of company liquidations in Scotland is now 1.0% of the total active register of businesses, compared to a rate of 0.7% in England and Wales. During the first quarter of this year 432 Scottish companies went into liquidation, receivership or administration. 

Within the total figures the sectors suffering the most are real estate, renting and other business activities, which accounted for 39.2% of all compulsory liquidations. Construction accounted for 15.7% of the total, while hotels, restaurants and bars made up 12.2%.

Iain Fraser, Scottish R3 member, said: “The official announcement of the UK experiencing a double dip recession may have been made last week, but these figures indicate that Scots businesses have been struggling for some time. Businesses are continuing to fail at a disproportionate rate in Scotland.”

198 Scottish building firms went bust in last year

Industry bracing itself for July’s Scottish GDP stats

New councillors could help create a new pipeline of projects

An alarming rise in Scottish construction firms going bust requires immediate action to prevent further job losses, industry bosses have warned.

New figures released by the Insolvency Service show the continuing impact of the recession on the sector, with 49 Scottish building firms forced into compulsory liquidation in the first three months of 2012.

In total, 198 construction firms have gone bust in Scotland in the past 12 months – a rise of 29% on the preceding year, 113% on two years ago and 161% on the year to March 2009.

Irvine’s recent designation as one of the Scottish Government’s new enterprise areas is likely to be a key talking point at next month’s Annual Public Meeting, organised by Irvine Bay Regeneration Company.

With building works now well under way in Irvine, the event also offers residents and local business people the opportunity to catch up on the progress of the town’s regeneration. Updates will also be provided on other Irvine Bay projects at Kilwinning, Saltcoats, Ardrossan and Stevenston.

To be held on Thursday 7th June, 2012 in the town’s Volunteer Rooms at 19 High Street, two meetings – one at 11am and the other 6pm – have been designed to widen the opportunity to attend.

Image: Irvine Bay is marketing a key development opportunity at Trinity Church

Threadneedle Street, Peterhead has been announced as the winner of the Regeneration category in the RICS Scotland Awards 2012.

The competition, organised by the Royal Institution of Chartered Surveyors (RICS) in Scotland, recognises the achievements of land, property and construction professionals in four categories – design and innovation, building conservation, regeneration and community benefit.  

Threadneedle Street is a pair of Georgian Terraces constructed in 1771.  This small, socially inclusive project, is part of the National Trust for Scotland’s Little Houses Improvement Scheme. 

The project is a housing and day care centre with three self-contained flats for the physically and mentally impaired. 

Image: Threadneedle Street, Peterhead

Commercial property firm Ryden has promoted Paul Richardson and Kenny Macpherson to the partnership, taking the total number of partners to 31. Both took up their new positions on 1 May.

Paul and Kenny work from the firm’s Aberdeen office, specialising in agency and building surveying respectively. 

Paul, an Associate since 2007, works within the Agency & Development Group and has contributed to the growth of the business in this area. Kenny, also previously an associate, has been heading up the Building Surveying department in the Aberdeen office for last the five years.

In other promotions, four staff members have been promoted to senior surveyor level, comprising: 

• Nick Armstrong, Investment & Finance (Edinburgh)
  
• John McHardy, Agency & Development / Investment & Finance (Aberdeen)
  
• Andrew Smith, Agency & Development (Aberdeen) 
  
• Steven Jones, Agency & Development (Leeds)

Image: Paul Richardson

The UK economy’s descent into a double dip recession will not have any serious impact on the property market, according to estate agents Strutt & Parker.

A recession is defined as two consecutive quarters of negative economic growth.  But Strutt & Parker argues that once the figures are adjusted, it is “far from certain” that they will show a negative and hence a double dip.  

Taking the view that the underlying strength of the economy is probably more robust than the official first estimate suggests, the firm discounts the idea that the property market “will spin into a state of panic”. 

Instead, Strutt & Parker believes that no reason to worry, since the majority of buyers and sellers will be only marginally affected.

Image: James Mackenzie, 'recession is a normal part of the business cycle'

With the promise, or threat, (choose for yourself) of Scottish Independence  just a couple of years away, Compropscotland is offering its readers the opportunity to participate in a poll exploring the attitudes of Scotland’s business community to the independence debate.

Martin Jack, of Think Different Events and the Business Banter, been asked by a Scottish Business Think Tank to conduct a longitudinal study of business opinion on the independence issue over the next two years.

Despite the tumbleweed trundling down some of Scotland's less-favoured High Streets, Glasgow and Edinburgh are holding their own among more than 200 cities around the globe, when it comes to attracting international retailers.

The tenacity of the two cities is revealed in the 2012 edition of How Global is the Business of Retail?, produced by property adviser CBRE.

Now in its fifth year, the CBRE survey maps the global footprint of 326 of the world’s top retailers – across more than 200 cities – to identify trends in global retail expansion at national and local levels. 

Image: Glasgow city centre, ranked at 60^th in the global retail stakes 

Property consultants Cushman & Wakefield have been appointed by Arisaig Property Partners as joint leasing agent, with Ryden, on Maxim Office Park. 

Maxim, which at 500,000 sq ft is the UK’s largest speculative office park, has so far failed to attract anything like enough occupiers to its vast empty spaces on the A8/M8 in North Lanarkshire. 

David Gebbie, partner at Arisaig Property Partners, who acts on behalf of the Park owner, said:  “We endeavoured to make as few major changes in the first year as possible, unless completely necessary. 

Image: Maxim, 'all the right ingredients to become the UK’s most successful business park'

2% GDP growth predicted for 2013

Growth prospects for 2012 ‘broadly unchanged’

Inflation close to Bank of England’s target in spring 2013

The UK economy will see growth resume in the second half of 2012, with faster GDP growth during 2013, according to the latest quarterly CBI economic forecast.

The CBI expects GDP growth in 2012 will be 0.6%, slightly down from its forecast in February of 0.9%. This is a direct consequence of the preliminary ONS figure for quarter one. Despite this, growth prospects remain broadly unchanged for the latter half of the year and, in 2013, the CBI forecasts GDP growth to be 2.0%.

Quarter-on-quarter growth is expected to be flat in the April to June quarter 2012 (0%), affected by the additional bank holiday for the Diamond Jubilee. 

‘Falling solar prices means now is the time for landlords in Scotland to invest in renewable energy’

New research conducted by DTZ in Scotland reveals a 50% fall in the price of solar photovoltaic installations (PV) in the last 12 to 15 months. 

Despite recent changes to the Feed in Tariff, DTZ argues that the price fall means it is now ‘cheaper than ever’ for landlords to install electricity generating panels.

Although ‘payback’ periods for solar installations are now less than 10 years, DTZ says that the biggest benefit to commercial landlords is the improved marketability of buildings – reducing voids and improving income flow – therefore increasing investment value.