The property The property development process: development process:

a Scottish casea Scottish case

Peter Fisher, Northumbria Peter Fisher, Northumbria University, UKUniversity, UK

Trends

Actors

Site

Economy

Government

Property markets

Events

““What processes, organisations and people significantly What processes, organisations and people significantly influenced how this site evolved?”influenced how this site evolved?”

• 7 elements, 51 sub-elements, 284 defined web-links7 elements, 51 sub-elements, 284 defined web-links

Site : Location Site : Location

Site : Physical characteristics Site : Physical characteristics

Site: listed buildings (demolished)Site: listed buildings (demolished)

Site : listed buildings (retained)Site : listed buildings (retained)

Long Term Long Term Trends: e.g. Trends: e.g.

SocialSocial

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

• Land market Land market Severe shortage of large central sites Planned re-sale of the Surgical Building

• Letting market : officesLetting market : offices Shortage of really modern prime stock in city centre Doubts over peripheral location

• Letting market : retail + leisure Letting market : retail + leisure Convenience stores, restaurants, cafes, bars Demand contingent on office workers and residents

• Investment market : commercial Investment market : commercial Economy: Cycles. ‘Asset price bubble’ 2006/7

• Residential marketResidential market Economy: investment. Strong sales 2006/07 ‘Buy to let

bubble’

Property Property markets markets

Government Government • Government Agency; Lothian Government Agency; Lothian

University Hospitals NHS TrustUniversity Hospitals NHS Trust Move to new hospital site 2003 Official aim = highest sale price However, unofficial motives

• Local Planning Authority; City of Local Planning Authority; City of Edinburgh Council Edinburgh Council World Heritage Site City Centre Local Plan 1997 Development Brief 1998

‘‘Actors’ Actors’

• Private sector firms Private sector firms • Role of Individuals?Role of Individuals?

Actor : master Actor : master planner & architectplanner & architect

• Event : Land acquisition Event : Land acquisition Need to win the competition International reputation, developer liked Nimes

• Trend : Environment .... Trend : Environment .... ‘Cool Britannia‘‘Cool Britannia‘ ‘Building in context’ of listed buildings Modernist design ousts contextual

• Property markets : lettingProperty markets : letting Forster reputation for design of high specification offices A first for central Edinburgh = ‘unique selling point’

• Government : Planning AuthorityGovernment : Planning Authority Forster reputation/ influence over ‘heart-of-the-site’ issue

Event: Site sale / acquisitionEvent: Site sale / acquisition• Government : AgencyGovernment : Agency

Lothian University Hospitals NHS Trust Negotiations with New Lauriston Ltd

• Event : Development Competition Event : Development Competition Long list of 10, initial bids, Autumn 2000 Short list of 3, final bids, Spring 2001

• Actor : Developer (Joint venture)Actor : Developer (Joint venture) Southside Capital, preferred developer, June 2001 JV = Taylor Woodrow, Bank of Scotland, Kilmartin

• Event : Site acquisition 2003Event : Site acquisition 2003 £30m unconditional price plus ‘Overage’ clauses covering sales prices and planning Development Agreement

TRENDSe.g.

Technology, politics

ACTORSDeveloper(s), Bank,

Other bidders, Consultants

SITEe.g. Location,

listed buildings

ECONOMYe.g. Cycles : Dot

Com

GOVERNMENT e.g. NHS Trust,

Planning Authority

PROPERTY MARKETS e.g. Land

(hotel) , Letting (offices),

Investment (residential)

EVENTSe.g. Site

acquisition,Design,

Feasibility

Event : Site sale /

acquisition

Events: design, feasibility, planning 2002Events: design, feasibility, planning 2002

Surgical building

Medical ward blocks

Red Home

ENT

Ophthalmology

Event : Construction: started July 2005Event : Construction: started July 2005

2006, from the 2006, from the south east south east

Events: design, feasibility, planning, 2005Events: design, feasibility, planning, 2005

TRENDSe.g. Social: (city living)

ACTORSe.g. Forster

Partners,Gladedale + overage

buy out

SITEe.g. Physical

Characteristics (listed buildings)

ECONOMYe.g. Cycles :

(Tourism after 9/11)

GOVERNMENTPlanning Authority + Historic Scotland

PROPERTY MARKETS

e.g. Land: (hotel problem)

Investment : residential boom

EVENTSe.g. Design

(‘heart’ issue) ,Feasibility

Events : design,

feasibility, planning

2005

Events : letting Events : letting & sale & sale

(commercial) (commercial)

Veridian

No 1 Quartermile

Events : Sale (Residential)Events : Sale (Residential)

Simpson & Fergusson

High Meadows

and and finally ... finally ...

• The previous commercial development modelThe previous commercial development model Good fit , yet adaptations needed for residential uses

• ‘‘Actors’ v ‘Government’Actors’ v ‘Government’ Each interprets the same Site, Trends, Economy & Property

Markets according to their role(s)• Organisations and individualsOrganisations and individuals

Both made a real difference in this case• Mixed-use ‘place making’Mixed-use ‘place making’

24 / 7 inter-dependence of activities + critical mass + good design + intelligent management = vibrancy = profit

• Heritage conservation Heritage conservation Can enhance profitability, yet they demolished five listed

buildings• One case study ...... so what ? One case study ...... so what ?

Applying, adapting and refining the model A literature of detailed case studies