Student flats set to replace £20m office plan at flagship Aberdeen site. By Bob Serafini.

Contradictory and contrasting signals on confidence are coming from the Aberdeen commercial property market as it continues to wrestle with Budget boosts but weak energy pricing. While, on the positive side, American investors completed a £4.6m deal to buy an industrial complex with three oil and gas sector tenants, news emerged that one £20m high profile new city centre office scheme has been scrapped.

Developer Dandara said it was responding to a change in market conditions, with supply now outstripping demand for offices, and was planning to turn what the company had previously described as their flagship - the city's historic Triple Kirks site - into student flats. The recent troubled past of this 200 year old former church complex (where only one A-listed tower and spire remains after partial demolition in the 1980s) looked to be over when local developer Stewart Milne bought the site four years ago and got consent to transform a long running eyesore into a nine storey office building overlooking Union Terrace Gardens.

However, the famous Archibald Simpson designed property, described as one of the city's true architectural jewels, was then acquired 18 months ago by Dandara Group - whose 80,000 sq ft office scheme called The Point is now being abandoned. It was launched last June to 70 commercial property experts as "commanding the finest streetscape in the beating heart of a city which sets the tone for the global energy industry".

Commercial director Neil Young said: "Changing from a Grade A office to academic accommodation has been driven by market cycles. "The commercial property market remains strong in Aberdeen and we continue to invest heavily in commercial development. "Within the city core, however, the dynamic has changed with a significant amount of office development underway. "Our flexibility and market leading capability as a premium house builder has allowed us to review our plans and re-approach this site with a development that will benefit the city."

The company envisage their new proposal, still to be authorised by Aberdeen City Council's planners, will create the city's premier student accommodation and help address a known shortfall of rooms. More positively, sale of a multi-million pound industrial development demonstrates continuing appeal to the international investment community. West Coast Estates sold a 2.5 acre complex to New York headquartered fund manager W P Carey, which has $9bn of assets under management worldwide.

The refurbished development at Broadford Road, Bridge of Don has four units totalling 55,000 sq ft. Commercial proper ty investment turnover in the city reached a record high of £641m last year, but according to Knight Frank partner Eric Shearer there is still "huge value" available for pension funds spending money in Aberdeen: "For many investors, there is a wait and see approach, although others will consider this an opportune time to invest, when there is less competition."

Conference has aim of energising businesses

Sustainability may have slipped down the corporate agenda during the financial crisis, but is now increasingly being viewed as a business imperative. While there are several good examples of new office buildings in Scotland earning top BREEAM ratings and high energy performance certificates, the real crisis is yet to come for companies in older, existing buildings, which make up the bulk of the property market.

Energy costs place pressure on financial directors to understand what can be done, developers to listen to the latest advice, and engineers to step up and deliver solutions.

At a more macro level, Scotland as a country is at the forefront of onshore and offshore wind energy, with political backing for new initiatives. Now, business and property experts are being given the opportunity to learn more at the UK's largest renewable energy exhibition and conference, which is set to bring 7000 people from 50 countries to Glasgow next month.

All-Energy 2015, at the SECC on May 6 & 7, has 450 exhibitors and top international experts on all sources of renewable energy generation - wind, wave, tidal, biomass, energy from waste, anaerobic digestion, hydropower, solar and geothermal - and a conference programme covering many other issues.

These include carbon capture and storage, hydrogen and fuel cells, energy storage, renewable heat, community energy projects, sustainable transport, on site renewables and development of sustainable cities. To make sure you don't get lost in this vast networking event, there is the brilliant idea of 15 sector-specific trails, guiding you to who is active in each field, together with a combination of serious debate sessions and quick-fire seminar presentations.

Free online registration for all elements of the show is available for those with a business or professional interest in the topics. www.all-energy.co.uk/register