£2.5 million fund launched to revive vacant industrial sites

Grants of up to £500,000 are available per project, covering a maximum of 30 per cent of eligible costs. The fund is designed to help overcome the financial barriers associated with refurbishing older industrial buildings, while encouraging private investment and returning unused premises to commercial activity.

Eligible improvements include building performance upgrades, low-carbon energy systems, landscaping, accessibility enhancements and wellbeing measures. Funding can also support energy audits and carbon assessments.

Applications will be assessed on their potential economic impact, the level of private investment they attract, occupier demand and carbon performance.

Priority will be given to projects that can bring vacant space back into use, attract new or expanding occupiers, create jobs and help businesses diversify into energy transition markets.

A pilot round in 2024 awarded £1.56 million to seven projects in Altens and East Tullos. The awards unlocked more than £5.3 million in total investment, including almost £4 million from the private sector. The projects are expected to support up to 100 jobs.

Recipients included AJT Engineering, which used the funding to establish a renewables division and recruit staff, and Air Liquide, which received support for expansion into low-carbon markets.

The other awardees were BB Minto Ltd, Aberdeen One Ltd/Ross Safety and Survival, Sinomine Speciality Fluids Ltd, EPIC ALVA 1 Ltd and West Coast Estates.

The new fund is open for applications, with initial proposals due to be reviewed before the end of the year. Funding will be available through 2027 and 2028.

Property owners and businesses are being encouraged to engage early, including those with projects that may need further development before a future funding round.

ETZ Ltd is a private sector-led, not-for-profit company focused on supporting the energy transition in North East Scotland. It receives support from the Scottish and UK governments, as well as The Wood Foundation.

Neil Young, deputy chief executive of ETZ Ltd, said: "The Property Improvement Fund has already shown what targeted investment can achieve.

"It has helped bring long-vacant industrial buildings back into use, improve existing premises and create space for businesses to grow.

"This £2.5m fund will support projects across Aberdeen and Aberdeenshire.

"We want to hear from applicants with strong, deliverable proposals that can revitalise industrial property and help grow the region’s energy transition supply chain."

Clare Alexander, director of boosting capital investment at Scottish Enterprise, said: "This new fund will help bring more vacant and underused industrial property back into productive use, creating the business-ready premises companies need to invest, grow and diversify into energy transition markets.

"Through our strategic partnership with ETZ, we are strengthening the North East’s proposition to investors and helping turn the region’s energy transition opportunity into long-term economic impact."