The property development process a Scottish case Peter

The property development process: a Scottish case Peter Fisher, Northumbria University, UK

“What processes, organisations and people significantly influenced how this site evolved? ” Trends Economy Property markets Site Actors Events Government • 7 elements, 51 sub-elements, 284 defined web-links

Site : Location

Site : Physical characteristics

Site: listed buildings (demolished)

Site : listed buildings (retained)

Letting & sales success Property markets Living in the city Long Term Trends: e. g. Social Graduate Recruitment Party lifestyle

Economy: e. g. City-region & Business cycle

• Land market Property markets § Severe shortage of large central sites § Planned re-sale of the Surgical Building • Letting market : offices § Shortage of really modern prime stock in city centre § Doubts over peripheral location • Letting market : retail + leisure § Convenience stores, restaurants, cafes, bars § Demand contingent on office workers and residents • Investment market : commercial § Economy: Cycles. ‘Asset price bubble’ 2006/7 • Residential market § Economy: investment. Strong sales 2006/07 ‘Buy to let bubble’

Government • Government Agency; Lothian University Hospitals NHS Trust § Move to new hospital site 2003 § Official aim = highest sale price § However, unofficial motives • Local Planning Authority; City of Edinburgh Council § World Heritage Site § City Centre Local Plan 1997 § Development Brief 1998

‘Actors’ • Private sector firms • Role of Individuals?

Actor : master planner & architect • Event : Land acquisition § Need to win the competition § International reputation, developer liked Nimes • Trend : Environment. . ‘Cool Britannia‘ § ‘Building in context’ of listed buildings § Modernist design ousts contextual • Property markets : letting § Forster reputation for design of high specification offices § A first for central Edinburgh = ‘unique selling point’ • Government : Planning Authority § Forster reputation/ influence over ‘heart-of-the-site’ issue

Event: Site sale / acquisition • Government : Agency § Lothian University Hospitals NHS Trust § Negotiations with New Lauriston Ltd • Event : Development Competition § Long list of 10, initial bids, Autumn 2000 § Short list of 3, final bids, Spring 2001 • Actor : Developer (Joint venture) § Southside Capital, preferred developer, June 2001 § JV = Taylor Woodrow, Bank of Scotland, Kilmartin • Event : Site acquisition 2003 § £ 30 m unconditional price plus § ‘Overage’ clauses covering sales prices and planning § Development Agreement

TRENDS e. g. Technology, politics SITE e. g. Location, listed buildings ACTORS Developer(s), Bank, Other bidders, Consultants Event : Site sale / acquisition EVENTS e. g. Site acquisition, Design, Feasibility ECONOMY e. g. Cycles : Dot Com PROPERTY MARKETS e. g. Land (hotel) , Letting (offices), Investment (residential) GOVERNMENT e. g. NHS Trust, Planning Authority

Events: design, feasibility, planning 2002 Surgical building ENT Ophthalmology Red Home Medical ward blocks

Event : Construction: started July 2005 2006, from the south east

Events: design, feasibility, planning, 2005

TRENDS e. g. Social: (city living) SITE e. g. Physical Characteristics (listed buildings) Events : design, feasibility, planning 2005 ECONOMY e. g. Cycles : (Tourism after 9/11) PROPERTY MARKETS e. g. Land: (hotel problem) Investment : residential boom ACTORS e. g. Forster Partners, Gladedale + overage buy out EVENTS e. g. Design (‘heart’ issue) , Feasibility GOVERNMENT Planning Authority + Historic Scotland

Events : letting & sale (commercial) No 1 Quartermile Veridian

Events : Sale (Residential) High Meadows Simpson & Fergusson

• The previous commercial development model § Good fit , yet adaptations needed for residential uses • ‘Actors’ v ‘Government’ § Each interprets the same Site, Trends, Economy & Property Markets according to their role(s) • Organisations and individuals § Both made a real difference in this case • Mixed-use ‘place making’ § 24 / 7 inter-dependence of activities + critical mass + good design + intelligent management = vibrancy = profit • Heritage conservation § Can enhance profitability, yet they demolished five listed buildings • One case study. . . so what ? § Applying, adapting and refining the model § A literature of detailed case studies and finally. . .