News of the release of the last patch of Edinburgh’s financial zone will be well received, says Bob Serafini

A speculative new office building, regarded in the market as the last opportunity for occupiers to acquire large amounts of space in Edinburgh’s main Exchange business district, is to start on site in autumn
this year.

The move to start construction of the 122,452 sq ft Capital Square property follows a two-stage tendering process which, The Herald understands, has resulted in BAM Construction being appointed as lead contractor.

Developer Hermes Real Estate Investment Management and development manager Parlison Properties are still hammering out final details of the deal, but the target is to have the building ready for occupation in late 2018.

Timing of the Britel funded investment could hardly be better, given advisers CBRE report supply of office space is at a 15 year low after a bumper last 12 months and prime rentals in
the capital are now in the £30 plus range.

This is a redevelopment of the redundant "Skypark" building at 62 Morrison Street, together with adjacent Capital House car park and electricity substations, but the project team, including architects Hurd Rolland Partnership, have come up with a top quality Grade A specification product.

Particularly impressive is a dramatic full height glazed central atrium, which proved successful at the nearby Atria development, and a landscaped private garden and roof
terraces of the kind seen at Waverley Gate.

The open-plan floor plates of 11,000 to 17,000 sq ft offer panoramic views over the city skyline and, helped by photovoltaic panels, can demonstrate environmental credentials which will achieve BREEAM excellent and EPC rating of A.

A three-storey car park being built under the offices will provide 29 spaces for Capital Square occupiers, 172 for the public and 32 relocated from what is currently a surface
car park.

This being Edinburgh, there are three times as many dedicated cycle racks as car spaces for the prospective tenants, and the building’s facilities include male and female shower suite, drying area and lockers serving cyclists and runners.

A private courtyard is set to impress visitors on arrival, and with a double height reception, the building offers all the latest industry standards on floor height, air conditioning, intelligent lighting, building management system and, for the geeks, the offices will quite literally provide a breath of fresh air, with ventilation supply at a rate of 12 litres per second per person. Gulp.

Letting agents CBRE and Montagu Evans confirm that floors can be split into half if required and have backed up the central location claim (it is an estimated six minutes from Haymarket transport interchange or Princes Street tram stop) with a list of more than 100 bars, restaurants, banks, shops and services that are all within easy walking distance.

With few remaining sites still to be developed in the financial and professional services quarter, the new scheme can boast some powerful neighbours. It is opposite the HQ of Scottish Widows, next to Aberdeen Asset Management and Atria, home of companies such as Aon, PWC, Brewin Dolphin and UK Green Investment Bank.

Stewart Taylor of CBRE said only one building, Atria 1, was currently able to cope with an occupier looking for 25,000 sq ft or more of new Grade A space, and suggests there will be "tears before bedtime" in this constrained market, which has several large requirements.

Confirmation that Capital Square is shortly going ahead will be widely welcomed.

Smaller projects which are in various stages of development across the city include Semple Street (45,000 sq ft), Quartermile 3 (73,000), The Mint Building (60,000) and the first phase of Haymarket (95,000).

NEWS IN BRIEF

Arrow points to Bellshill

GVA has secured recruitment company Blue Arrow as new tenants at GHI’s Belgrave Court, Bellshill, where the firm has taken 3000 sq ft on a 10-year lease. Agent Alastair Cumming said: "The Lanarkshire market remains extremely competitive and flexible leasing packages from £8 per sq ft plus the ability for GHI to undertake a fit-out and provide a high quality office solution was the key factor". A total of 8000 sq ft of new office accommodation remains.

Former shoe lace factory ties up future

A pension fund has lodged a pre-application notice to start regeneration of the former Paton’s Mill site in Johnstone, Renfrewshire. The 10 acres of land, bound by the Black Cart river and the town’s High Street, house derelict fire damaged structures in poor repair and present a number of environmental challenges. The proposals include a mixed use development opening up a stretch along the river for anglers, a link to a cycle route, heritage path telling the mill’s history, family leisure destination, food and non-food retail and 20 new homes.

Offices appeal to charity

Care and support in the community charity Cornerstone has moved from Guild Street to take a five-year lease of 7,800 sq ft of space in Centurion Court, Aberdeen for a new headquarters. The established office building at North Esplanade West, close to Union Square and transport hubs, is proving successful due to a combination of high specification, flexible lease terms, and good location. The property is owned by Miller Cromdale, with Knight Frank and Graham + Sibbald as agents.

Landmark hotel on market

Bathgate landmark, the 27 bedroom Kaim Park Hotel, is on the market for £1.5m after 10 years of investment and development by current owners WGY Group. Alistair Letham of selling agents Colliers International said: "This is an established hotel business with good turnover and profitability and excellent local following. With the potential to extend the property significantly, this is a great opportunity for ambitious new owners."