JULY TO SEPTEMBER 2015
EDINBURGH’S PRICELESS ASSET
THE GLOBAL IMPACT OF THE UNIVERSITY OF EDINBURGH
ALSO IN ISSUE 53 » HISTORY COMES ALIVE » LATEST BUSINESS NEWS » ST ANDREW SQ TRANSFORMS 10 QUESTIONS FOR DAVID WESTWATER, INTERSERVE » HOTEL DEVELOPMENT OPPORTUNITY
IN THIS ISSUE THE FIRST WORD
08
W 05
17 04 SNAPSHOTS
The major news from the city’s economy
07 NEW ARRIVALS
Corero Network Security move in
08 10 QUESTIONS FOR…
David Westwater, development director, Interserve
10 (cover story)
EDINBURGH’S PRICELESS ASSET
The global impact of the University of Edinburgh
14 ROUND TABLE
The role of the University of Edinburgh in the local and global economy
16 MAKING IT HAPPEN
Targeting a billion pound boost
17 ADDED EXTRAS
City cycling is on the right path
18 INNOVATIVE BUSINESS
New business models served up for food and drink
20 INVESTMENT OPPORTUNITY Hotel development opportunity on Edinburgh’s Waterfront
elcome to the latest issue of Invest Edinburgh. This issue we look at some of the key developments underway in the city and the contribution to the economy made by the University of Edinburgh. Capital Focus covers the £75m development by Standard Life Investments and Peveril Securities at 3-8 St Andrew Square. Set for completion in 2017, the building will deliver 10,000m2 of grade ‘A’ office space along with new shops, restaurants and apartments. In our cover feature, we examine the value of the University of Edinburgh to the city. The University is not only a world-class place to study, but also a hub of innovation and research excellence. The subject of this issue’s 10 Questions is David Westwater, development director at Interserve. In partnership with Tiger Developments, Interserve is developing tHe Haymarket, a £200m project which will deliver office, hotel and retail space next to Haymarket rail station. One to Watch focuses on Aquila Insight, an analytics firm specialising in big data that has grown exponentially since it was founded in 2012. Two Big Ears, a supplier of innovative 3D audio technology, is featured in Made in Edinburgh. Meanwhile Massachusetts-based Corero Network Security, a leading supplier of denial-of-service attack solutions, has established a research and development facility in Edinburgh, featured in New Arrivals. Making it Happen is centred on the City Deal proposal that Edinburgh and the surrounding local authorities are putting forward, which could unlock huge infrastructure investment; while Added Extras explores cycling in Edinburgh, including the recent £5m boost for cycling facilities. Finally, Edinburgh by Numbers (www.edinburgh.gov.uk/ edinburghbynumbers) was released in May. The figures in the 2015 edition cement Edinburgh’s place as a knowledge intensive city. They also showcase Edinburgh’s exceptionally highly qualified population, unique tourism offering and impressive levels of foreign direct investment. Thank you for reading.
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COUNCILLOR FRANK ROSS, Convenor of the Economy Committee The City of Edinburgh Council editor@investedinburgh.com
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To find out more about how we can help you, please contact the Investor Support team at invest@edinburgh.gov.uk or on +44 (0)131 529 6600. SPECIALIST ACOUSTIC ENGINEERING CONSULTANCY SANDY BROWN ASSOCIATES HAS OPENED A NEW OFFICE ON WALKER STREET IN THE CENTRAL BUSINESS DISTRICT.
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UNIQUE GARDEN SITE APPEALS
The multi-million pound South St Andrew Square development will deliver new prime office, retail and leisure space in the heart of Edinburgh city centre, supporting hundreds of new jobs and creating rare opportunities for restaurateurs. The south side of Edinburgh’s historic St Andrew Square is being transformed by a £75m redevelopment of numbers three through eight. The South St Andrew Square project by Standard Life Investments (SLI) and Peveril Securities will deliver more than 10,000m2 of new grade ‘A’ office space over the upper five floors and over 7,000m2 of high-quality retail and restaurant units on the lower floors, along with rooftop apartments. Once home to the headquarters of Scottish Provident, the site lay vacant for more than a decade before being jointly acquired by SLI and Peveril in February 2014. Demolition of the existing buildings was completed earlier this year and work on the new development is now well underway, with completion set for 2016. Designed collaboratively by CDA Architects and Gareth Hoskins Architects, the development will breathe new life into the site, with active frontages on South St David Street (right) and St Andrew Square (top) acting as a bridge between the retail heart of Princes Street and both the luxury shopping offer on Multrees Walk and the forthcoming St James Quarter. South St Andrew Square occupies an immensely prestigious location. The development sits directly opposite
Jenners, the world-famous department store, and St Andrew Square Gardens, one of Edinburgh’s most popular parks. Edinburgh Bus Station and Edinburgh Waverley Railway Station are both just minutes away, while the tram line provides a direct link to Edinburgh Airport. South St Andrew Square has already attracted strong interest from occupiers, with SLI itself taking the entirety of the
“SOUTH ST ANDREW SQUARE IS A RARE OPPORTUNITY AND THE ONLY ONE OF ITS KIND. ”
office space on a 15 year lease. The deal – the largest office letting deal in Edinburgh in the past decade – will enable a major expansion of SLI’s operations in Edinburgh, supporting up to 1,000 employees. The pre-letting reinforces St Andrew Square’s status as a fund management hub, with SLI joining such names as SG Hambros, Kleinwort Benson, Rathbones, Quilter, and First State Investments. The retail and restaurant elements of the development have also proven popular, with designer fashion retailer TK Maxx pre-letting 2,700m2 of ground floor space for a new flagship store. Six restaurant units ranging from 300m2 to 1,200m2 remain available. “We’re hoping to announce some exciting new restaurant names in the next few months as we’ve had a lot of interest from high-quality restaurateurs looking to have their first premises outside of London,” said David Stewart of SLI. “The configuration of the restaurants offers the sort of space and size that has rarely been available in Edinburgh city centre.”
www.standrewsquare.co.uk
DUTCH OIL SERVICES COMPANY SCHLUMBERGER HAS OPENED A FACILITY ON EDINBURGH’S WATERFRONT.
www.investedinburgh.com
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INAUGURAL HISTORY COMES BUCHANAN ALIVE THROUGH BUSINESS AWARDS TECHNOLOGY This April saw Edinburgh’s leading small-scale entrepreneurs recognised at the inaugural Buchanan Business Awards. Organised by Business Gateway and the Capital City Partnership, the Buchanan Business Awards – named in honour of the late Councillor Tom Buchanan – are designed to celebrate the best of the city’s “micro businesses” (firms employing fewer than 10 people). “The Buchanan Business Awards are an excellent opportunity for many businesses to showcase their entrepreneurial spirit and to gain support and recognition,” said Councillor Frank Ross, convenor of the City of Edinburgh Council’s Economy Committee and chair of the Capital City Partnership. Flavours of Italy, a specialist tour operator offering quality cooking, painting, Pilates and language holidays in Italy, won Employer of the Year. Mademoiselle Macaron was awarded the Young Entrepreneur of the Year Award. Her café, which specialises in French macarons, is located under Edinburgh Castle. CAHOONAS, which produces male underwear, sportswear and grooming products, won the Developing Business Award. The Innovative Business Award went to Grease Monkey, a bicycle services company offering a range of products and services to help people and organisations build cycling into their lives. Pilot Beer won the Growth Award and the Overall Business of the Year Award. The Leith-based micro-brewery produces unique craft beers such as ‘Iced Tea Ale’ and ‘Mochaccino Stout’. “Apart from the huge morale boost, the Buchanan Business Awards have connected us with a wealth of exciting, like-minded small businesses and the prize fund will help us get ready to acquire new investment,” said Matt Johnson, co-founder of Pilot Beer.
> Find out more: www.flavoursholidays.co.uk www.mademoisellemacaron.co.uk www.cahoonas.co.uk www.greasemonkeycycles.com www.pilotbeer.co.uk
Two interactive digital displays at the Museum of Edinburgh are helping to showcase 500 years of Edinburgh’s history. The first of the displays explores the life and career of field marshal Sir Douglas Haig, who was born in Edinburgh in 1861. Complementing an extensive collection of personal effects donated to the museum by Haig’s descendants, the touchscreen portal lets visitors interact with artefacts such as Haig’s ceremonial tunic (pictured), passport and field glasses. “Visitors can examine the pages within the passport, following Haig’s global travels through the immigration visas. They can study panoramic photography from the Western Front in 1918 or chart the shifting front over the four-year conflict,” explains senior curator Gillian Findlay. The second interactive display provides a window to the past, revealing a rejuvenated 17th century courtyard. “Users can see the changing face of the courtyard and manipulate detailed virtual versions of some of the items on display,” adds Gillian. “This digital trial is a first for the Council’s museums and galleries service and will be an exciting opportunity to discover how our cultural offering might be able to use new technology to shape visitors’ knowledge of the past,” said Councillor Richard Lewis, convener for Culture and Sport for the City of Edinburgh Council. Designed and created by Edinburgh-based Insurgent Studios, the new displays are the latest upgrade in a city-wide programme of visitor experience innovations. “The interactive installations not only put visitors directly in touch with the city’s past in new and innovative ways, they also play a role in digital conservation, preserving the items for future generations,” added Craig Hunter, managing director of Insurgent Studios. > Find out more: www.edinburghmuseums.org.uk
PHARMACEUTICALS FIRM ALMAC IS INVESTING £3.5M IN A NEW PEPTIDE BIO-MANUFACTURING LABORATORY COMPLEX AT THE EDINBURGH TECHNOPOLE SCIENCE PARK. 4 INVEST EDINBURGH | JULY TO SEPTEMBER 2015 |
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INVESTORS BACK CITY TALENT Private equity backers have provided capital for a number of companies in Edinburgh to expand in recent months. Family-owned cult womenswear and accessories brand Ness has attracted a £2.5m investment from FM Equity Partners. The new funding, coupled with an existing £1m borrowing facility from Clydesdale Bank, will be used to launch new retail outlets across the UK and enhance the online shopping presence of the brand. Ness aims to treble turnover to £15m by the end of the decade. Pufferfish, the developer of the PufferSphere line of spherical display systems (pictured), has raised £615,000 of capital from Par Equity, B-Con Engineering, the Scottish Investment Bank, and its management team. The funding will enable Pufferfish to open an office in Canada and boost investment in new product development. Celtic Renewables – the creator of biobutanol, a direct substitute for petrol derived from waste by-products of the whisky distilling process – has secured £500,000 of equity investment from the Scottish Investment Bank and a private investor. The spinout from Edinburgh Napier University will now work towards creating a demonstrator facility.
Edinburgh-based super-food supplier Mara Seaweed has signed a deal with Marks & Spencer that will see its seaweed flakes sold in 173 stores across the UK. Jam manufacturer SuperJam has raised £308,000 of crowdfunding via the Crowdcube platform in exchange for a 12.05% equity stake. The capital will be used to expand the brand into East Asia and to improve packaging and advertising. Also experiencing success with Crowdcube are the craft breweries Bellfield Brewery and Growler Beers, which raised £163,000 and £107,000 of crowdfunding respectively. Meanwhile, the University of Edinburgh has injected an extra £6m into Old College Capital, its in-house venture capital fund, boosting this source of funding for spinouts and start-ups.
CAPITAL CONNECTIONS Major rail investment is set to deliver a step change in Edinburgh’s connectivity. The Borders Railway will open to passengers on 6 September 2015. Built by Network Rail at a cost of £294m, the 48km railway runs between Edinburgh and Tweedbank through some of Scotland’s most scenic countryside. Seven new stations along the route will significantly expand Edinburgh’s labour catchment, as well as unlock projects such as Shawfair, a major development on the outskirts of Edinburgh that will deliver 93,000m2 of retail and commercial space, 4,000 homes and three schools. Major investment is planned for the Caledonian Sleeper service between Scotland and London, recently named the world’s sixth best “railway adventure”
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New direct flights have been launched between Edinburgh Airport and Copenhagen (Scandinavian Airlines); Stuttgart (easyJet); the Faroe Islands (Atlantic Airways); Frankfurt-Hahn and Santander (Ryanair); Łódź and Rzeszów (Czech Airlines); and Kefalonia, Larnaca, Vienna and Zante (Jet2).
by Travel. Operator Serco has signed a £145m contract with CAF for 75 carriages. The new fleet will come into operation in April 2018. Serco will also upgrade stations along the route. Two bids for open access to the East Coast Main Line from 2018 have also been announced. FirstGroup aims to run five daily discount services, while Alliance Rail is planning a luxury service featuring private compartments for first class passengers. £50m of track upgrades would cut hourly journey times between Edinburgh and London to just 3 hours 43 minutes. > Find out more: www.bordersrailway.co.uk www.sleeper.scot www.alliancerail.co.uk
CANADIAN AEROSPACE AND TELECOMMUNICATIONS FIRM COM DEV INTERNATIONAL HAS EXPANDED INTO EDINBURGH FOLLOWING ITS ACQUISITION OF ELECTRONIC COMPONENTS MANUFACTURER MESL MICROWAVE.
Rockspring has purchased the 17,700m2 Tanfield office building for £56m, representing an initial yield of 6.5%. The fourth annual Concours of Elegance will be held at the Palace of Holyroodhouse from 4 to 6 September 2015. 60 of the world’s rarest motor cars will be exhibited in the palace grounds. Oscar-winning director Giuseppe Tornatore has chosen Edinburgh’s New Town as the setting for his new romantic drama La Corrispondenza. Edinburgh-based testing services provider Exova has won a £2.5m contract with CRC-Evans Offshore to carry out pipeline and welding testing for the Kaombo oil and gas field on the Angolan coast. The Scottish Centre for Food Development and Innovation at Queen Margaret University Edinburgh has partnered with Seriously Good Venison to bring the UK’s first venison black pudding to market. The puddings are naturally rich in iron and vitamin B12. Edinburgh is to host the diving events of the inaugural European Sports Championship in 2018. Fantasy sports firm FanDuel has been named Digital Technology Business of the Year in the DigiTech Awards.
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1 TO WATCH WHAT DO THEY DO? Aquila are self-confessed ‘data geeks’ who excel at interpreting big data for companies. “We work with clients to formulate business cases, define data problems, scope analytical projects and build internal analytical teams,” explains cofounder John Brodie. “We combine the traditional client focus of a consultancy with the most advanced analytical support available. Using techniques such as predictive modelling, behavioural segmentation, attribution and product pricing we increase our clients’ understanding of their customers and track the effectiveness of customer interactions.” WHY ARE THEY WORTH WATCHING? A recent McKinsey report highlighted a shortfall in the right people with data
management and analysis skills, just as the availability of data is exploding. Since launching with two staff in August 2012, Aquila has grown rapidly and now works with global brands including Sony Mobile and Office Depot. “We believe passionately that the need for technically strong, commercially focused analysis has never been greater,” explains John. WHERE HAVE THEY COME FROM? John founded Aquila with Warwick Beresford-Jones. “I left an analytical agency to join a digital agency and was impressed by its client servicing, which isn’t a traditional strength of analysts,” says John. “Warwick and I both had senior commercial responsibilities in a wide range of sectors and we felt there was a real opportunity to build a business that combined the best
practice of analytics and client management.” WHAT DOES IT MEAN FOR THE AREA? Already employing 37 staff, the team is now split between their Edinburgh head office and a London office. Expansion continues, with more staff set to join over the next few months. John continues: “Edinburgh had the right clients, initially in financial services, but also in other sectors. It’s a great city to live in. It appeals to the best analysts as a place to live and we’re only interested in recruiting the best.” Now the firm, which to date has been entirely self-financed, is planning an international expansion. “We’re looking to scale the business rapidly,” adds John. >F ind out more: www.aquilainsight.com
MADE in EDINBURGH
TWO BIG EARS
A fuse has been lit in the global games market as it prepares for explosive growth in immersive virtual reality. And one Edinburgh start-up is ideally positioned to capitalise, thanks to its unique spatial audio technology, designed for use by anyone seeking to deliver genuinely 360° immersive audio. Founded in 2013 by University of Edinburgh graduates, Abesh Thakur and Varun Nair, Two Big Ears stems from a
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master’s degree project involving the application of 3D audio technology. “Advances in gaming technology have tended to focus on the visual environment, with little attention paid to audio,” explains Abesh. “Existing 3D audio open source software was extremely difficult to use and required huge amounts of processing power. Traditionally, games developers have been limited to audio that required up to 15-20% of the available CPU budget.”
Earlier this year Two Big Ears unveiled its 3DCeption development toolkit, an innovative and easy-to-use audio engine for delivering binaural sound. The result is an immersive, high fidelity audio environment. Users can hear sounds above, below, in front or even behind them over any pair of headphones. More than 1,200 games developers around the world have already adopted the plug-ins developed by Two Big Ears, positioning the company at the heart of the VR and augmented reality market, which is expected to grow from £614m in 2015 to more than £1.8bn by 2018. But 3D spatial audio isn’t limited to games. A recent collaboration with Icelandic songwriter Björk has seen 3DCeption used to create a unique 360° VR sound on Stonemilker, the opening track of her latest album. “Films, music, advertising and games are all set to be transformed,” adds Abesh. “True 3D spatial audio has far reaching implications for the way we consume media and interact with the world around us.” > Find out more: www.twobigears.com
SWEDISH FAST FASHION RETAILER H&M IS TO OPEN A 2,000M2 OUTLET AT OCEAN TERMINAL SHOPPING CENTRE IN AUTUMN 2015.
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NEWARRIVALS CORERO NETWORK SECURITY WHAT DO THEY DO? Corero Network Security is a leading provider of first line of defence security solutions, helping to safeguard businesses’ vital IT systems from intrusive distributed denial of service (DDoS) attacks. Not only is the average business today forced to combat multiple DDoS attacks per day, attackers are becoming increasingly sophisticated in the tools they use to overwhelm networks and potentially gain access to sensitive data. Corero provides adaptive real-time technology that enhances security architecture and delivers a scalable, flexible and responsive defence against DDoS threats. WHY THE MOVE? In April, the business announced the opening of a new research and development office in Edinburgh. Corero
is poised for growth and is positioning its global R&D to gain access to the best talent. Companies, public infrastructure, and even nation states are becoming ever more connected, and increasingly dependent on the internet. The cost and impact of even short duration DDoS attacks can be enormous from loss of online business, but these attacks often mask deeper breach attacks. The Edinburgh team will work closely with Corero’s global R&D network, but will primarily focus on DDoS security solutions for the shift to cloud computing. WHY EDINBURGH? The Edinburgh facility became possible when Corero hired a small proven team of world-class engineers with decades of experience in network security
SHENZHEN-EDINBURGH CREATIVE INCUBATOR LAUNCHES www.investedinburgh.com
LEONARDO HOTELS HAS BEEN ANNOUNCED AS THE OPERATOR OF JANSONS’ NEW 267-BEDROOM, FOUR STAR HOTEL AT THE INDIA BUILDINGS ON VICTORIA STREET, SET TO OPEN LATE NEXT YEAR.
FIRST LINE OF DEFENSE product development. Julian Palmer, who formed this team and is based in Edinburgh, is now Corero’s vice president of engineering. With a high calibre talent pool, world-class local universities, and a vibrant and growing cyber security community, Corero sees Edinburgh as an exciting opportunity. In addition to working closely with local universities, it will also look to foster and support the growing cyber security community in Scotland. > Find out more: www.corero.com
The Edinburgh Creative Industries Incubator in Shenzhen provides flexible business accommodation for Edinburgh-based creative and digital agencies looking to expand into China. The Incubator, which launched in May, is located in the F518 ‘Idea Land’ district in Shenzhen, a city of more than 10m people and one of China’s special economic zones. A reciprocal incubator aimed at Shenzhen companies looking to break into the Scottish market will open in Edinburgh in September. Both incubators will offer temporary free space, along with consultancy services, access to creative and digital networks and ‘soft landing’ support. The launch of the International Creative Industries Incubator in Shenzhen was marked by a coding workshop for school pupils, an exhibition by local artists, and a visit from a delegation of businesses from Edinburgh, among them Biomorphis, Interference Pattern, RunRev, Spot Sensor Technologies, Sensewhere, IndigoVision and Edinburgh Palette. A number of the companies have since taken up space in the incubator. > Find out more: wendy.liu@edinburgh.gov.uk
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David Westwater Development Director, Interserve IE> Interserve is currently involved in a number of high-profile projects in Edinburgh. How would you describe the current development scene in the city? DW> In terms of the office market, the vacancy rate is at its lowest for over six years. There’s limited development ongoing and clear evidence of pre-letting activity, which shows there is no guarantee that the existing development pipeline will satisfy occupier demand. We’re already encouraged by the interest we’ve received regarding the delivery of the office schemes we’re working on, given the level of existing and forecast office demand. In the last two to three years many grade ‘B’ office buildings have been converted to serviced apartments, hotels and homes and this has just tightened the supply of office accommodation in the market even more, while conversely opening up opportunities in other markets. IE> tHe Haymarket is a £200m joint venture development between Interserve and Tiger
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Developments. How does this scheme compare with other large-scale projects coming online? DW> tHe Haymarket is one of the largest property schemes to come on line in the last 10 years and the biggest of its kind currently under development in Edinburgh. Occupiers require certainty of delivery and with the site preparation almost complete we can offer that certainty. It will comprise 31,586m2 (340,000 sq ft) of office space, 5,016m2 (54,000 sq ft) of retail and leisure along with 350 hotel/aparthotel bedrooms and a 300-space underground car park. Our aim is to deliver the best in quality of mixed-use office, hotel and retail opportunity for occupation starting in 2017. IE> What do you see as the USP of tHe Haymarket for prospective office and retail occupiers? DW> From our research, we know that major office occupiers want to be located adjacent to major transport connections and that is what we’re offering at tHe
Haymarket. Its prime location next to a major train and tram station really makes this a unique office opportunity in comparison to any other development coming online in Edinburgh. Nowhere else in the capital is able to offer such wellconnected, grade ‘A’ specification with flexible floor-plates. Such connectivity obviously has a direct correlation on work productivity and we’re confident this is a strong appeal factor to the corporate sector. IE> The rail tunnels running beneath the development site present considerable technical challenges. How has Interserve addressed these? DW> The complexity of the underground phase has been extremely challenging. The reinforcement of the north and south rail tunnels has been a painstaking civil engineering project especially with works having to be carried out at night to avoid disruption to train services. Under the control of our construction division and their technical advisors, a specialist team has
CALZEAT & CO, A MANUFACTURER OF PREMIUM JACQUARD TEXTILE THROWS, HAS OPENED A SHOP IN THE GRASSMARKET.
<10QUESTIONS “OUR AIM IS TO DELIVER THE BEST IN QUALITY OF MIXED-USE OFFICE, HOTEL AND RETAIL OPPORTUNITY FOR OCCUPATION STARTING IN 2017.”
and the StayCity aparthotel element of the development. This is on schedule for occupation in 2017 and indeed we have already removed 12,000m3 of earth from the site. IE> tHe Haymarket is one of the “Edinburgh 12”, the 12 most strategically important developments in central Edinburgh as identified by the City of Edinburgh Council. What has this meant for the project? DW> We’ve found the “Edinburgh 12” initiative to be a very useful source of practical support for tHe Haymarket. The City of Edinburgh Council has helped facilitate the complex discussions with Network Rail around our tunnel strengthening works, as well as helping with the interaction between our development and surrounding utilities. Overall, this initiative has helped us progress what is a significant landmark site for the city, involving a number of influential stakeholders. IE> As a ‘considerate construction’ company, how has Interserve’s team on tHe Haymarket worked alongside the local community given the scale of this project? DW> Working on such a large-scale site over several years, it’s crucial to engage positively with the local community through the inevitable disruption. We’ve worked closely with the local primary school running a highly popular art competition as well as offering our support on the ground with a local church. We produce regular newsletters to keep the community fully informed of progress and are active across a number of apprenticeship and graduate schemes.
installed 4,000 masonry stitch bars placed with pinpoint precision. Furthermore, over 350,000 litres of cement grout has been injected into the tunnel linings through nearly 5,000 holes cored into the Victorian era brick linings. IE> What is the next major milestone for tHe Haymarket? DW> With the tunnel reinforcement nearing completion as part of the phase one preconstruction enabling work, the next major milestone is the commencement of above ground works for the landmark H5 office building, underground car park for Q-Park
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IE> As one of the largest commercial projects outside London, what was the thinking behind the design for tHe Haymarket? DW> Essentially, this is a primary landmark office development, which forms a new gateway to the capital. We’ve worked closely with our master-planning and delivery architects to create a permeable site design which allows a natural flow for people to pass through the five buildings using boulevards and open public spaces. Great care has been given to the external landscaping to ensure that tHe Haymarket becomes a destination in its own right within Edinburgh. IE> Nationally, Interserve has pledged to create 500 new apprenticeships by 2018 and provide 1,000 work placements to
SERVICED OFFICE PROVIDER CITIBASE HAS OPENED A 2,200M2 BUSINESS CENTRE AT GYLEVIEW HOUSE IN WEST EDINBURGH OFFERING FLEXIBLE WORKSPACES FOR UP TO 400 PEOPLE.
As development director, David has overall responsibility for delivering development opportunities for Interserve across Scotland. He is currently progressing the £200m regeneration development project at Edinburgh’s Haymarket. Interserve Developments is a division of Interserve, a £3bn global construction and facilities management company. David was formerly Development Director at FairBriar and Frasers Property UK. He has over 30 years experience in construction and property covering residential and commercial developments up to £200m.
schoolchildren each year. What does this mean for the company? DW> Our graduate and apprenticeship programmes at Interserve play an important role in ensuring we have a pipeline of skilled professionals and future leaders. Our commitment to 1,000 work placements per year is important for us, at it allows young people to experience the world of work and hopefully be inspired by our industry. IE> In 2014, Interserve signed an Employability Accord with the City of Edinburgh Council. What does the Accord mean for the company? DW> The signing of this important Accord with the Council has ensured that we’ve have access to the skills we need, as well as helping local people into work. As we look ahead to the completion of our development from 2017 onwards, we will continue to work closely with the Council.
www.thehaymarketedinburgh.com
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The University’s new Higgs Centre, currently under construction and due to open in 2016, will create an environment in which scientists from around the world can share and develop ideas on theoretical physics.
EDINBURGH’S
PRICELESS ASSET
In the most recent QS World University Rankings, the University of Edinburgh was named one of the top 20 universities in the world and the seventh best in Europe. The accolade reflects the University’s global standing as one of the world’s leading establishments for research and teaching.
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AMERICAN INVESTMENT SOFTWARE PROVIDER XX eVESTMENT HAS EXPANDED INTO EDINBURGH WITH THE ACQUISITION OF PRIVATE EQUITY SOFTWARE FIRM TOPQ.
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P
roving this point, new research from by BiGGAR Economics* has shown that the economic output attributable to the University gross value added has risen 15% since 2012. The report presents a formidable array of statistics, providing a financial breakdown of where and how the Univeristy of Edinburgh contributes to regional and national economies . Across the UK, annual GVA generated through University start-ups amounts to £164.1m, with £121.4m of that centred on the regional Edinburgh economy. Per annum, student spending contributes a further £112.1m to the local economy while the University also generates £14.4m through tourism. Finally, there is the added value generated through continuous professional development spending, which injects a further £31.5m into the city economy. Through this combination of its core operations, its knowledge transfer activity, health research and graduate premium; its students’ spending and earnings (through part-time work, placements and volunteering) and its impact on tourism, the overall annual figure stood at:
UK
£3.3bn GVA
(£2.9bn in 2012)
36,960
jobs supported
Ever since its formation in 1582, the University’s characters and specialisms (and its sheer breadth) have made Edinburgh a unique seat of learning. Ever since the
Enlightenment, it has boasted an enviable track record of world-class research and innovation, with centuries of major scientific advances and groundbreaking new inventions. And its discoveries represent significant opportunities for industry.
INNOVATION ENGINE
The University has produced an impressive family of spinouts and start-ups, exploiting research across a range of sectors from microelectronics to creative arts and biotechnology to tourism. One recent benchmark innovation by Professor Harald Haas – now spun out from the University as pureLiFi – offers scope for a billion dollar global industry. Of the 262 companies created by the University since the 1960s, 213 (81%) remain active today, contributing more than £158m to the global economy and employing more than 2,700 staff. Of these, 190 are located in Scotland, employing an estimated 2,181 staff. That places Edinburgh ahead of such names as MIT in terms of start-ups, helping underline why one in four undergraduates remain in Edinburgh after graduating and why blue-chip technology giants such as Amazon, Microsoft and IBM have established R&D facilities in the city. Through its consultancy services, the University helps clients solve problems, implement change and validate processes and new products, (1,562 projects contributed £17.2m in 2013-14) while sponsored research programmes also provide industry with access to academic expertise and state-of-the-art facilities.
THE TOTAL INCLUDES:
£2.0bn GVA and 31,170 jobs in Scotland
£1.26bn GVA and 23,792 jobs across Edinburgh City Region
( Figures include estimated lifetime graduate productivity gains and the returns through medical research undertaken at the University)
REFLECTING AN EXPANDING INTERNATIONAL ALUMNI, THE GLOBAL STATISTICS ARE:
£4.9bn GVA 44,500 jobs
*‘ The Economic Impact of the University of Edinburgh’, 05/15, covers the academic year 2013-14
(£4.0bn GVA and 41,700 jobs within the EU)
RECRUITMENT AGENCIES CHANGE, CORDANT AND MAXWELL BRUCE HAVE EACH OPENED BRANCHES IN EDINBURGH CITY CENTRE.
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Front cover: The McEwan Hall ©Sarah White, Edinburgh & Beyond Photography. www.facebook.com/edinburghandbeyondphotography
CHANCELLOR’S FELLOWS
250
HIGH-POTENTIAL ACADEMICS
DELIVERING WORLD-CLASS QUALITY RESEARCH ACROSS
174
RESEARCH CONTRACTS COMMISSIONED BY INDUSTRY TOTAL VALUE
£6.7m SCOTTISH-REGISTERED
£1.9m
TOTAL UK-REGISTERED
£5.4m
OVERSEAS-REGISTERED
£1.3m
12 INVEST EDINBURGH | JULY TO SEPTEMBER 2015 |
LICENSING
Research activity also translates into economic activity through licensing agreements. The research, innovation and enterprise arm of the University is Edinburgh Research and Innovation (ERI), which has negotiated 648 licence agreements in the past five years, liaising with 71 different organisations in 2013/14 alone. For every £1 of royalty payments, BiGGAR calculates that licensee companies earn at least £12 in increased turnover.
SUPPORTING EMPLOYMENT
The combined impact of licensing, company spinouts and start-ups supported more than 2,400 jobs in Scotland and an approximate total of 3,600 jobs globally. “However, the impact of our students has traditionally been seen not just in the private sector, but also in the public sector,” says senior vice-principal, Professor Charlie Jeffery. “Alumni helped improve education and public health around the world.” In a new century, that international dimension has become even more significant. “Edinburgh today has 14,000 international students, more than Oxbridge combined, and we are the most
22
SCHOOLS
international institution among the top 30,” says vice-principal international, Professor James Smith. “Two-thirds of the world’s nations are represented in the student body, and this gives Scottish students a global perspective and engagement that can’t be matched elsewhere.” International students not only bring new ideas to the city, but also act as ambassadors when they return home. “We benefit from a supportive international alumni body,” adds Professor James Smith, who was among a delegation led by Professor Charlie Jeffery, which recently showcased Edinburgh’s research excellence to alumni, educators and business contacts in East Asia. The trip helped develop relationships with existing academic partners and embark on new ventures, including a collaborative biomedical science degree with Zhejiang University. It will see a fouryear degree taught entirely in English by Edinburgh and Zhejiang academics, at Zhejiang’s new international campus in Hainan: a first for a Scottish university. “In 2014’s Research Evaluation results, the University was in the top 10 in the UK in all but two subjects,” adds James. “Our School of Informatics is ranked 12th in the world and we have acknowledged global strength in emerging areas like low carbon and bioinformatics.” Breadth of focus is a defining characteristic of all the leading universities; which need big research programmes in science, medicine and engineering. “We offer 500 degree programmes, spread across 100 disciplines – and the four year undergraduate programme gives further scope for choice,” adds Professor James Smith. “UK higher education generally enjoys a high reputation overseas, but Scotland is seen as especially friendly, and the city and University offer a powerful combination. Thanks to its scale, reasonable living costs and festivals, Edinburgh is seen as a very attractive city. “Our challenge now is to sustain our position.”
XERCISE4LESS HAS LAUNCHED A £1M HEALTH AND FITNESS FIRE SAFETY ENGINEERING SPECIALIST CLUBAND AT WESTSIDE PLAZA. OTEAC HAS OPENED AN OFFICE IN LEITH.
*Source: Global University Venturing TTO Rankings 2014
<FEATURE LEARNING FOR LIFE Stanford University’s ‘looped university’ model suggests an increasingly continuous involvement in study. “Where once alumni looked back at university as a discrete phase in their lives, we now envisage a populi of ongoing students, who know they can benefit from courses here throughout their careers,” says Professor James Smith. “This deeper engagement will deliver a network of active alumni around the world.” Global offices in China, India, Latin America and North America are proving key assets and the recent trip to East Asia offered a chance to meet alumni in Hong Kong, Singapore and Shanghai. “Our offices try to seed student recruitment, develop the alumni base and build networks for the whole University, while delivering a continuous dialogue with local authorities,” says Professor James Smith. “At the same time, ICT and digital channels offer powerful new ways to teach. Mid-career up-skilling, say for vets or doctors in Africa, highlight one way in which technology can support those who aren’t able to travel here, but recognise our expertise.” Edinburgh today is a commercially dynamic city. “These things don’t just happen by accident,” adds Professor Charlie Jeffery. “In the last decade, Informatics Ventures acted as one catalyst, providing students with regular events that helped glue together the city’s burgeoning technology scene.” It now boasts home grown successes, including global names such as Skyscanner and FanDuel. In 2014, ERI was ranked 17th equal in the world for its technology transfer activities*, while Codebase, Engage Invest Exploit – Scotland’s premier annual investor showcase – and the University’s own venture capital fund, Old College Capital, as well as the University alumni club, all offer other ways to connect good ideas and great expertise. In 2014, 15% (£240m) of the research funding allocated to universities in the UK by research councils was won by Scottish universities. Edinburgh made six joint submissions; one with Scotland’s Rural College; two with St Andrews University and three with Heriot-Watt University, reflecting in part, the opportunities that come from exploring new ways of working, and building capacity with new partners and across wider disciplines. (The partnership with Heriot-Watt in Architecture, Built Environment and Planning is ranked second in the UK – based on the volume of its world-leading and internationally excellent research – while the two institutions’ long standing collaboration in Mathematics is fifth in the UK.) “We value the contribution that such collaborations offer to Scotland’s research capability, and our powerful reputation is a priceless asset when attracting the world’s best to Edinburgh,” concludes Professor Charlie Jeffery.
PROPERTY The University is Edinburgh’s biggest property developer. “Our projected spend in the next 10 years is £1.4bn,” says Professor Charlie Jeffery. “We are competing with the best in the world and to do that, to attract brilliant staff and students, we need to offer the best facilities.” The Edinburgh BioQuarter is a great example. In 10 years its site will be fully developed; offering a unique location that brings together teaching, medical research, clinical practice, acute healthcare and commercial application of clinical research on a single campus. It’s a model that has already attracted research agreements with leading pharma companies, including GSK and Johnson & Johnson. Easter Bush (left) has already seen tremendous development, where work with Scotland’s Rural College is bringing together veterinary and agricultural research “in the same way as veterinary and human health are combined at The Roslin Institute. It’s about commercial applications lying at the heart of research.” City centre developments include Old College, bringing a refresh to the law school; and
George Square, where a sequence of renovations is ongoing. The Business School and 50 George Square, (the School of Literatures, Languages & Cultures), now offer outstanding locations for study. “We are also working to enhance the College of Art’s estate, and McEwan Hall (below) is being transformed to a year-round conference and events space,” adds Professor Charlie Jeffery. Outline planning is in place to develop a city-centre digital arts arena, connecting Edinburgh College of Art with computing science and the School of Informatics, which has produced more world-leading and internationally excellent research than any other university in the UK. The arena will research and apply technical innovations in the performing arts. Possibly the biggest investment is underway at King’s Buildings, the science and engineering campus, where every school appeared in the top five in the 2014 REF, and earth systems and environmental sciences (including geography) were rated the best in the UK. The entire site is being developed incrementally to support high-level performance. McEwan Hall.
www.research-innovation.ed.ac.uk
www.investedinburgh.com
AMERICAN COFFEEHOUSE GIANT STARBUCKS HAS OPENED A ‘STARBUCKS EVENINGS’ OUTLET AT EDINBURGH AIRPORT OFFERING A SELECTION OF SAVOURY DISHES, WINES AND BEERS, WHILE AMT COFFEE HAS ALSO OPENED A NEW OUTLET.
| JULY TO SEPTEMBER 2015 | INVEST EDINBURGH 13
ROUND TABLE: “What do you see as the role of the University of Edinburgh in both the local and global economy?”
Colin Adams, director of commercialisation, University of Edinburgh School of Informatics The School of Informatics at the University of Edinburgh is the largest concentration of research talent in its field in Europe, with well over 500 academics and researchers. A leader in its academic field since 1992, according to the Research Excellence Framework that assesses the quality of research in all UK universities, the School combines scale with excellence. Besides delivering the fundamental product of research – knowledge – it contributes to economic growth in a number of ways. Firstly, there’s talent. Informatics skills now underpin many areas of most companies efficiency and growth, creating a huge skills gap in this area. The School’s graduates and researchers are highly sought after by industry worldwide. We attract talent from all over the globe; more than half of the School’s students come from outside the UK, encompassing 65 different nationalities. This talent also attracts global companies, such as Disney and Amazon to set up shop here for their R&D teams. Then there’s disruption. The School is a thriving generator of start-ups and spinouts, and has been instrumental in the emergence of Edinburgh’s technology cluster – the largest group of ambitious young companies outside of London, many founded by students and researchers within the School. The most significant of these is FanDuel, which although only five years old, is already a ‘unicorn’ (a company valued at more than $1bn). Finally, there’s innovation. Because of its scale and pre-eminence, the School is involved in a large number of international
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research programmes. We have three major centres for doctoral training, training new PhD students – in Data Science (extracting value from large volumes of data), Pervasive Parallelism (optimising the electronic devices of the future) and Robotics (interacting with the machines of the future). Each of these centres has attracted more than 30 companies, both global and local, which interact with the students to see how they can take commercial advantage from new ideas and insights in these technology areas.
THE SCHOOL OF INFORMATICS AT THE UNIVERSITY OF EDINBURGH IS THE LARGEST CONCENTRATION OF RESEARCH TALENT IN ITS FIELD IN EUROPE.
Kevin Collins, assistant principal for industry engagement, University of Edinburgh The history, scale and excellence of the University, ranking 17th in the world, plays a key role in the success of Edinburgh. The University employs 12,000 staff, offers 500 degree courses, which attract 35,000 students from 160 countries to the city. The University ranks 4th in the UK for research, delivering economic impact through industry R&D partnerships; consultancy engagements and technology licenses; and 180 new companies formed by staff and students during the last five years.
Our role is to deliver the talent and skills that are the life blood of all businesses, and to work with industry and commerce to translate our research into economic impact. The University delivered £3.3bn to the UK (almost £2bn to the Scottish economy) in 2013-14, generating 37,000 UK jobs, 31,000 of these in Scotland. In ‘Big Data’ the University is joining forces with four universities (Cambridge, Oxford, UCL and Warwick) and the Engineering and Physical Sciences Research Council to create the £67m Alan Turing Institute with the mission to become a global leader in Data Science. Although we’ve just started, we already see huge opportunities to work with industry and commerce at an unprecedented scale. The opportunities for Edinburgh are there for the taking. Alan M Johnston, general council, University of Edinburgh Court The University of Edinburgh is such a good example of how our capital city continues to excel locally, nationally and internationally, and punch well above its weight. A global top-20 university doesn’t occur by accident! Huge strategic investment initiatives have built on our solid historical foundations and strong reputation, to get us to this point today. Similarly ambitious future plans see further expansion and internationalisation in the next 10 years, and I expect to see local staff numbers increase beyond the 12,000 currently employed, while a growing student population injects enormously into the local economy, and creates a diverse and vibrant cultural environment. Our Global Academies undoubtedly have global reach and influence, and it is no exaggeration to say that we are proud to help change people’s lives for the better, throughout the world. Edinburgh has been my home for
START-UP DELIVEROO, WHICH OFFERS HOME DELIVERIES OF FRESHLY-PREPARED MEALS FROM LOCAL RESTAURANTS, HAS EXPANDED INTO EDINBURGH, OPENING AN OFFICE ON PRINCES STREET.
<INSIGHTS
over 40 years, and I’m delighted to have studied, lived, worked and invested here. And pleased to continue to do so – why wouldn’t I? Professor Charlie Jeffery, senior vice-principal, University of Edinburgh The University contributes to the national and international economy across the entire breadth of our activity. As the BiGGAR Report highlights, our economic impact locally comes through our students and staff and the direct spend of the University; while the income we generate from consultancy services and licensing involves links with organisations across the globe, and the economic value of our research is also highly significant through commercial contracts, start-ups and spinouts. As public funding comes under pressure, and funders change their expectations, there is naturally a growing focus on these non-academic impacts. No university can rely solely on public funding now, but with the global reach of the University of Edinburgh and the increasing ease of communication, we can evolve new ways to engage and interact with partners, alumni and private sector companies across the world. For example, the University was recently awarded a contract worth an estimated £120,000 to encourage knowledge exchange and collaborations between Scotland and low carbon markets in Hong Kong. It’s a win-win and these new links will hopefully encourage innovative new products and services for both Scottish and international markets.
www.investedinburgh.com
THE UNIVERSITY’S MOST SIGNIFICANT ACHIEVEMENTS IN INVENTION AND INNOVATION HAVE INCLUDED THE FIRST GENETICALLY ENGINEERED VACCINE AGAINST HEPATITIS B AND THE WORLD’S SMALLEST TELEVISION SCREEN.
Prof Steven McLaughlin, head of school of engineering and physical sciences, Heriot-Watt University Scottish universities play a significant role in the Scottish and UK economies through the high quality jobs they provide for highly skilled professionals, their graduates and their knowledge exchange activity in creating and spinning out their research into new companies. The University of Edinburgh has the largest research activity of any Scottish university and is consistently placed in the top five in the UK for its research strength. This research strength enables it to deliver impact across all areas of the economy ranging from energy, informatics, electronics to medicine and all areas in between. Over 40 years the University’s most significant achievements in invention and innovation during this period have included the first genetically engineered vaccine against hepatitis B; the first miniature digital camera; the first Scottish university spinout company to list on the London Stock
DISCOUNT RETAILERS LIDL AND HOME BARGAINS HAVE BOTH ANNOUNCED PLANS FOR NEW STORES IN THE SUBURB OF CRAIGMILLAR.
Exchange and the world’s smallest television screen. In addition, through its strategic alliance with Heriot-Watt University, it is seeking to advance, grow and expand Scottish engineering and the impact that Scottish universities have beyond the ivory tower. Greg Ward, executive director city strategy and economy at The City of Edinburgh Council The City of Edinburgh Council has worked closely with the University of Edinburgh on the pan-European Open Innovation project, which is supported by the European Union’s Interreg IVB NWE programme. The Council worked closely with Informatics Ventures and LAUNCH.ed at the University to deliver the ‘Challenge Cup’ business pitching contest and various ‘collider’ events, as well as providing 294 students with entrepreneurship coaching. A significant coup of the project has been the creation of six University of Edinburgh start-up firms who between them have raised over £450,000 of funding. Finally, a series of “Citrus Saturdays” events have enabled local schoolchildren to practise entrepreneurship while being mentored by University of Edinburgh students.
WE CAN EVOLVE NEW WAYS TO ENGAGE AND INTERACT WITH PARTNERS, ALUMNI AND PRIVATE SECTOR COMPANIES ACROSS THE WORLD.
| JULY TO SEPTEMBER 2015 | INVEST EDINBURGH 15
<MAKINGITHAPPEN
EDINBURGH CITY REGION TARGETS BILLION POUND BOOST The City of Edinburgh Council is partnering with five neighbouring local authorities to develop a joint bid for a £1bn City Deal that could generate tens of thousands of new jobs across the region. Edinburgh region is the second most prosperous city in the UK, outside of London and it is calculated that the City Deal could leverage an additional £3.2bn of private sector investment, bringing wider benefits to the rest of Scotland and the whole of the UK. The funding is to be spent on projects to unlock investment, including transport, housing, energy and digital connectivity. Potential projects will also work to tackle pockets of inequality and other constraints holding back the region’s development potential. The region is recognised internationally as a knowledge capital, and the surrounding region boasts an increasing level of research and development activity: Fife has forged a successful reputation in renewable energy technology and manufacturing; West Lothian has developed new science and technology capabilities, while a range of internationally-orientated companies
16 INVEST EDINBURGH | JULY TO SEPTEMBER 2015 |
based in the Scottish Borders, Midlothian and East Lothian are active in industries such as textiles, light engineering, electronics and medical devices. The Edinburgh and South East Scotland region has a strong reputation for academic excellence. Six higher education institutions are based in the region, among them the University of Edinburgh and University of St Andrews, ranked amongst the top 100 universities worldwide in the 2015 CWTS Leiden Ranking. The next step is to seek agreement from the UK and Scottish Governments on the development of a detailed pipeline of projects that will help the region continue to grow. Investment would be supported by a complementary package of skills and innovation measures, such as businessled training academies in the key growth sectors, so that the city region continues to be internationally competitive in the decades to come.
“THE NEXT STEP IS TO SEEK AGREEMENT FROM THE UK AND SCOTTISH GOVERNMENTS ON THE DEVELOPMENT OF A DETAILED PIPELINE OF PROJECTS THAT WILL HELP THE REGION CONTINUE TO GROW.” Detailed work on prioritising potential investments will continue throughout 2015, in partnership with representatives from both the Scottish and UK Governments, and it is hoped a multi-billion pound City Deal could be in place by early 2016.
www. investinedinburgh.com
DESIGN AND ENGINEERING CONSULTANCY ATELIER TEN HAS OPENED AN OFFICE ON HANOVER STREET.
<ADDEDEXTRAS
ON THE RIGHT PATH
Picture this. To your left rises the dramatic volcanic promontory of Arthur’s Seat. To your right stretches the lush green meadows of Holyrood Park and the iconic Scottish Parliament. The dramatic light seems to emphasise the timeless ruggedness of Salisbury Crags as you pedal past joggers, dog walkers and fellow commuters all enjoying the evening sun. What better way to unwind after a day at work? No wonder that more than one in ten people in Edinburgh now regularly commute by bike. Edinburgh’s commitment to promoting cycling has played a key role in securing the fourth stage of this year’s Aviva Tour of Britain on 9 September 2015. The 218km race departs from Holyrood Park before taking the riders south, through the Scottish Borders, to Blyth in the north of England. The arrangement is part of a three-year deal that will see Edinburgh host the Grand Départ of the Tour in 2017, helping to build momentum in support of the city’s aspiration to one day welcome the Tour de France. Cycling has once again hit top gear across the country as more people choose to leave the car at home and forgo public transport, encouraged by fresh investment in improved routes. One such investment, made by the City
UK CYCLISTS RODE 5.2BN KM LAST YEAR, UP BY ALMOST 4% IN 12 MONTHS AND THE HIGHEST RECORDED LEVEL SINCE 1990. THERE ARE APPROXIMATELY 3,379 KM OF NATIONAL CYCLE NETWORK ROUTES IN SCOTLAND.
of Edinburgh Council, Transport Scotland and the national sustainable transport charity Sustrans, has delivered a £1.5m upgrade to the National Cycle Network Route 1, which links the city centre to the Forth Road Bridge. A further £5m boost to improve the capital’s cycling infrastructure was announced in April 2015. Planned improvements include enhancing connectivity between existing dedicated cycle paths and supporting ambitious plans to transform part of Edinburgh’s university quarter into a haven for walkers and cyclists. It’s not just urban commuters and road racers that benefit from planned improvements. Two wheeled adrenalin junkies have the Pentland Hills Regional Park on the southern edge of the city, offering 100km2 of open space and rugged hillsides to explore by mountain bike. Plans have recently been submitted for the development of a new 42 hectare mountain bike hub on the southern edge of the city, offering residents and visitors alike a network of sustainable trails geared towards newcomers and intermediates. Supported by sportscotland, the plan aims to develop a trailhead facility offering café facilities, bike hire and shop, as well as an entry point to the wider Pentland Hills trail network. There’s never been a better time to leave the car at home.
www.tourofbritain.co.uk www.sustrans.org.uk/scotland www.pentlandhills.org
www.investedinburgh.com
A NEW PUZZLE-THEMED VISITOR ATTRACTION, DR KNOX’S ENIGMA, HAS OPENED AT WARRISTON’S CLOSE OFF THE ROYAL MILE.
| JULY TO SEPTEMBER 2015 | INVEST EDINBURGH 17
NEW GENERATION SERVES FOOD AND DRINK IN NOVEL WAYS Artisanal food and drink has never been more popular, yet brand awareness and access to markets still represent challenges to boutique producers. Step forward a new generation of entrepreneurs in Edinburgh whose innovative business models are bringing gourmet products directly to consumers.
Luxury food and craft beer subscription service Flavourly made headlines last year when a successful crowdfunding campaign, mounted using the Angels Den platform, saw the business raise over £150,000 of capital in less than 24 hours, shattering equity crowdfunding records in the process. Flavourly was founded by Ryan O’Rourke in his grandmother’s garage in 2012 after he saw his father, an amateur honey maker, struggle to get his produce to market. The company provides subscribers with a monthly delivery of gourmet food boxes featuring a sumptuous selection of eight to 12 luxury food items, all painstakingly selected from the UK’s best independent artisan producers. A similar service is offered for beer connoisseurs, who can sign up for a selection of eight craft beers each month, expertly curated from a range of more than 1,000 UK microbreweries.
FLAVOURLY IS THE FIRST SCOTTISH COMPANY TO RAISE MORE THAN £500,000 IN CROWDFUNDING. An appearance on Dragon’s Den in early 2015 saw Ryan secure offers of funding from all five dragons. However, Ryan decided instead to turn once again to the crowdfunding model. The second round of crowdfunding, this time using the Crowdcube platform, attracted investment from 339 investors, with the target of £300,000 being oversubscribed by more than 65%. In fact, Flavourly was the first Scottish company to raise more than £500,000 in crowdfunding. Over the past two years, Flavourly has expanded its subscription base rapidly and now boasts several thousand members, all eager to savour their monthly samples of independently-produced gourmet food, snacks and craft beer. Having shipped more than 500,000 boxes of produce already, Flavourly’s phenomenal rise has delivered 500% year-on-year growth.
18 INVEST EDINBURGH | JULY TO SEPTEMBER 2015 |
THE SPERATUS GROUP HAS OPENED A BRANCH OF THE BOOZY COW, A BURGER RESTAURANT AND BAR, ON FREDERICK STREET.
<THESTATISTICS The added publicity from Ryan’s recent appearance on Dragon’s Den has helped double monthly sales to more than £100,000. The popularity of craft beers has also provided the inspiration behind another Edinburgh start-up, whose uniquely sustainable business model is helping small batch breweries reduce manufacturing costs while connecting directly with the consumer. Through its retail outlet in Morningside, Growler Beers offers customers a selection of 10 to 12 craft beers and three to five craft ciders. Customers ‘rent’ a growler – a refillable pop-top bottle sold in a 1lt, 2lt, or 3lt size. They simply choose their preferred craft beer, enjoy it in the comfort of their own home and then return the bottle for a wash and refill. Founder Stuart Dinning came up with the idea while holidaying in the United States, opening his first shop in 2013.
“KEY TO SUCCESS IS THE CITY ECONOMY; A LARGE NUMBER OF PROFESSIONAL SERVICES AND TECH STARTUPS REPRESENT OUR CORE CORPORATE CUSTOM.” With plans to expand licensing across the UK, Stuart also turned to Crowdcube in March this year to secure the £100,000 in growth capital his business needed. That target was met within a few weeks, paving the way for a second Edinburgh store followed by Glasgow and the wider UK market. The appeal of refillable bottles extends beyond consumers. “For artisan breweries, the most expensive part of the brewing process is actually bottling the beer,” explains Stuart. “For microbreweries looking to get their product to market but limited to freehouse establishments, the rise of large pub chains in some cities is also stifling opportunities. Our business model gets round those issues, making it especially attractive to the finest microbreweries.” Another expanding business recently chose Edinburgh as the base for its northern UK operations. Deliveroo, the fine dining takeaway delivery service, was founded in London in 2013 and now serves
www.investedinburgh.com
more than 5,000 meals a day, with more then 1,500 UK restaurants now signed up. Having experienced exponential growth and after securing more than £25m in growth capital in January 2015, the business has already expanded into Dublin, Paris, Berlin and numerous UK cities including Brighton, Birmingham, Manchester, Glasgow and Cambridge. Former Deliveroo customer Caroline Hazlehurst believed in the concept so much she recently gave up her job in Finance as a Private Equity Executive to become Deliveroo’s regional manager for Scotland and North East England. She has been responsible for overseeing the launch of the company’s operations in Edinburgh, and has plans to expand the premium takeaway service into Scotland and the North of England, including Newcastle and Aberdeen. “We already have over 40 quality launch restaurants in the city and believe our Edinburgh operation has huge potential,” says Caroline. “Key to success is the city economy; a large number of professional services and tech start-ups represent our core corporate custom.” With Deliveroo’s London business also doing corporate deliveries, the group is currently developing a tailored service for its corporate clients in Edinburgh. Among the eateries to have signed up are the Japanese restaurant Hakataya and the café S.Luca, which makes ice cream to an old family recipe. “The quality of provider here in the city is exceptional. When we first began talking to restaurants there was a low level of awareness of what we do, however, when they see our clients in London, including Michelin-star establishments, they undersand,” explains Caroline. “From our customers’ perspective, Deliveroo becomes part of their life. They love the quality, service and range we offer, which is why retention rates top 80%, with the average customer using our delivery service once a fortnight.”
GUERNSEY-BASED OPTICIAN CHAIN SPECSAVERS HAS OPENED AN OUTLET AT FORT KINNAIRD SHOPPING CENTRE.
“EDINBURGH’S RESIDENTS APPRECIATE GREAT FOOD, VALUE, FLAVOUR AND PROVENANCE, WHICH IS WHY THE CITY REPRESENTS SUCH A FANTASTIC OPPORTUNITY.”
www.flavourly.com www.growlerbeersuk.com www.deliveroo.co.uk
| JULY TO SEPTEMBER 2015 | INVEST EDINBURGH 19
WATERFRONT HOTEL DEVELOPMENT OPPORTUNITY OCEAN POINT, LEITH, EDINBURGH, EH6 6JB
Dougray Smith and DTZ are pleased to present a unique hotel development opportunity on Edinburgh’s waterfront in the heart of Leith
A 0.6 hectare development site in a prominent and busy waterfront location. The opportunity is adjacent to the 5,800m2 Ocean Point 1 office development and Ocean Terminal, a 40,900m2 shopping and leisure destination. Nearby is the old port area of Leith, which is home to cosmopolitan bars, bistros, boutiques and two Michelin Star restaurants. Ocean Point is easily accessible from Edinburgh City Centre (2.5 miles away) via public transport. The site would also benefit from the proposed tram extension project.
• Located in close proximity to Victoria Quay, the headquarters of the Scottish Government • Within easy reach of Edinburgh city centre • A seafront location with impressive views over the Firth of Forth
FIND OUT MORE: Dougray Smith Chris Dougray E: chris@dougraysmith.com T: +44 (0)7808 479 215
• Located just metres from the tourist attraction, Royal Yacht Britannia, named the UK’s best visitor attraction by TripAdvisor
DTZ James Thomson E: james.thomson@dtz.com T: +44 (0)131 222 4521
• Offers the opportunity to be part of a new waterfront destination.
www.theoceanpointhotel.com
The site has previously been proposed as the location of a new 250-bedroom hotel with conferencing facilities and a bar and restaurant.
ALL RIGHTS RESERVED. MATERIAL CONTAINED IN THIS PUBLICATION MAY NOT BE REPRODUCED, IN WHOLE OR IN PART, WITHOUT PRIOR PERMISSION OF THE CITY OF EDINBURGH COUNCIL (OR OTHER COPYRIGHT OWNERS). WHILST EVERY EFFORT IS MADE TO ENSURE THAT THE INFORMATION GIVEN HEREIN IS ACCURATE, NO LEGAL RESPONSIBILITY IS ACCEPTED FOR ANY ERRORS, OMISSIONS OR MISLEADING STATEMENTS.