Invest Edinburgh (July-October 2016)

JULY TO OCTOBER 2016

FRESHER OPPORTUNITIES:

STUDENT ACCOMMODATION IN EDINBURGH

ALSO INSIDE ISSUE 57 » 10 QUESTIONS FOR JULIA AMOUR, DIRECTOR, FESTIVALS EDINBURGH » NEW OVERSEAS FLIGHTS » LINKS WITH SHENZHEN, CHINA » A WORLD-CLASS FILM LOCATION

IN THIS ISSUE 06

10

18

04 SNAPSHOTS

The latest news from around the city

07 NEW ARRIVALS

Airline Norwegian touches down in Edinburgh

08 10 QUESTIONS FOR…

Julia Amour, director of Festivals Edinburgh

10 (cover story)

FRESHER OPPORTUNITIES:

Student accommodation in Edinburgh

14 ROUND TABLE

What are the key requirements for a successful student housing development and how well does Edinburgh fulfil those requirements?

16 MAKING IT HAPPEN

Edinburgh Airport boosts global connectivity

18 SPECIAL FEATURE

Building new trade and investment links with

Chinese mega-city Shenzhen

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THE FIRST WORD

H

ello and welcome to the latest issue of Invest Edinburgh.

Following the referendum result of 23 June, it now appears that the UK will begin the process of leaving the European Union. The City of Edinburgh Council’s view is that Edinburgh’s fundamentals remain unchanged and we will continue to work to secure new investment in the city.

Our cover feature looks at the city’s booming market for purpose-built student accommodation. With investment in this dynamic sector at an all time high, the opportunities for developers have never been greater.

Director of Festivals Edinburgh Julia Amour is the subject of this issue’s 10 Questions. Julia explains how they are championing Edinburgh’s year-round programme of festivals and offers a glimpse of plans to enhance the offer, including new initiatives being rolled out this August.

This issue’s special feature looks at the recent visit to Shenzhen by some of the Edinburgh city region’s most exciting tech and creative firms. The week-long intensive visit saw Cobra Simulation, Coda Octopus, Freakworks, Sainted Media, and Sunamp cultivate new business contacts in the Chinese mega-city.

Capital Focus looks at 2 Semple Street, a £24m project by GSS Developments that will deliver 3,252m2 (35,000ft2) of grade A office space in Edinburgh’s Exchange District. Set for completion in January 2018, the development will provide much-needed new office space in a strategic location.

New Arrivals looks at the rapidly expanding airline Norwegian, which is establishing a base at Edinburgh Airport and aims to begin running low cost trans-Atlantic flights from next spring.

App developer Neatebox is this issue’s 1 to Watch, while Made in Edinburgh looks at training management software provider Administrate.

Making it Happen looks at the increase in international flights from Edinburgh Airport, with announcements from Delta Air Lines, WOW air, Finnair and more boosting the city’s global connectivity. Meanwhile, Added Extras offers a rundown of the city’s growing number of craft breweries and micro-distilleries.

Finally, our back cover showcases filming in Edinburgh.

Interest in the city as a filming location has been boosted by high profile productions such as Outlander and Trainspotting 2, along with recent proposals for a new purpose-built film studio complex on the outskirts of Edinburgh.

Thank you for reading,

For a free quarterly subscription to Invest Edinburgh, or to obtain additional copies, please contact editor@investedinburgh.com Follow Invest Edinburgh on Twitter. twitter.com/investedinburgh Follow Invest Edinburgh on Facebook. facebook.com/investedinburgh THIS MAGAZINE IS PRINTED ON ENVIRONMENTALLY RESPONSIBLE PAPER MANUFACTURED USING 100% RECYCLED WASTE.

Invest Edinburgh is created in a partnership between Marketing Edinburgh Ltd and the City of Edinburgh Council. It is published by Resolve Creative, Suite 104, 47 Timber Bush, Edinburgh EH6 6QH t. +44(0)131 555 7585 w. resolve-creative.co.uk

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COUNCILLOR GAVIN BARRIE Convenor of the Economy Committee The City of Edinburgh Council editor@investedinburgh.com

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.

TESCO HAS OPENED A METRO SUPERMARKET ON DUNDAS STREET IN EDINBURGH’S NEW TOWN, WHILE GERMAN DISCOUNT SUPERMARKET CHAIN ALDI HAS SUBMITTED PLANS FOR A STORE ON DOCK STREET IN LEITH. MEANWHILE, A NEW ONE STOP CONVENIENCE STORE HAS OPENED ON SOUTH CLERK STREET.

<CAPITALFOCUS

2 SEMPLE STREET: THE LATEST ADDITION TO EDINBURGH’S EXCHANGE DISTRICT

2 Semple Street will deliver 3,252m2 of prime office accommodation within Edinburgh’s financial and professional services hub by the end of January 2018, creating hundreds of jobs.

McLaughlin & Harvey has broken ground on 2 Semple Street, GSS Developments’ £24m office and retail development in Edinburgh city centre, with practical completion on schedule for January 2018.

Pre-letting opportunities are available for 3,252m2 (35,000ft2) of grade ‘A’ office space over five storeys, with floor-plates of up to 673m2 (7,244ft2). With views to Edinburgh Castle, the office space is likely to appeal to corporate occupiers keen to secure a presence in a high profile location in the Exchange District. Tenants engaging at an early juncture will have the opportunity to influence details such as internal finishes, core design and energy efficiency, along with the naming rights. The development will also deliver substantial retail accommodation on the ground floor: a 697m2 (7,500ft2) unit facing onto Lothian Road and a 279m2 (3,000ft2) unit fronting onto East Fountainbridge. With over 17,000 people working in the Exchange District, there are significant opportunities for incoming retailers.

“For growing companies looking to secure modern, energy efficient, ‘best in class’ office space in the centre of Edinburgh’s increasingly vibrant Exchange District, 2 Semple Street provides occupiers with unrivalled quality alongside certainty of delivery,” said Paul Stevenson, director

www.investinedinburgh.com

of GSS Developments. “With a number of well-known occupier lease expiries in 2018, this delivery certainty allows us to discuss with confidence definite completion and move-in dates with occupiers.”

The building has been designed to provide high amenity office accommodation with open floor-plates, raised access floors, and LED lighting. Staff will have access to showers and changing facilities, along with an external courtyard area. Eight parking spaces and 58 bicycle storage space will be available for the use of staff and visitors.

ICT PROVIDER WARDMAN UK, ELECTRONIC SECURITY SYSTEMS SPECIALIST EVOLUTION SECURITY, AND MOBILE PHONE RESELLER WR SMARTPHONE HAVE TAKEN OFFICE SPACE AT THE RODDINGLAW BUSINESS PARK IN WEST EDINBURGH.

2 Semple Street is strategically positioned in the Exchange District, Edinburgh’s financial and professional services hub. Nearby developments include Port Hamilton, the headquarters of Scottish Widows; Exchange Place, a trio of office buildings with tenants including BlackRock, Wood Mackenzie, and Hymans Robertson; and New Uberior House, one of the Lloyds Banking Group’s main offices. Haymarket railway station and tram interchange lie less than a 10-minute walk away.

Aberdeen-based GSS Developments is a family-owned commercial property firm with an extensive track record. Funding for the development is being provided by the Bank of Scotland.

With demand for office space in Edinburgh steadily rising, 2 Semple Street is set to be a prime addition to the Exchange District.

Chris Cuthbert, CuthbertWhite t: +44 (0)7989 395 165 e: chris@cuthbertwhite.com Angela Lowe, CBRE t: +44 (0)131 243 4189 e: angela.lowe@cbre.com w: www.2semplestreet.co.uk

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1 TO WATCH WHAT DO THEY DO? Neatebox, the Edinburghbased app developer, offers a free interactive app – Edinburgh Up Close – which uses smartphones in conjunction with Bluetooth Low Energy (BLE) beacons to provide a personalised digital guide to Edinburgh’s historic Old Town.

The beacons continually broadcast a passive signal that mobile devices can 'listen' for, enabling location-based content to be delivered straight to a user’s phone. By using Bluetooth to deliver content, no Wi-Fi or mobile data usage is required, helping users avoid data roaming charges.

Created in partnership with the City of Edinburgh Council, Edinburgh Up Close encourages visitors to explore the many hidden gems of

Edinburgh’s famous Royal Mile. The iOS app, available through the App Store, launched in spring 2015, with more content planned.

WHERE HAVE THEY COME FROM? Neatebox founder and managing director Gavin Neate spent 18 years with Guide Dogs for the Blind as a guide dog mobility instructor. His comprehensive knowledge of visual impairment and experience of unsafe and poorly installed pedestrian crossings led him to design a system by which users with impairments could more safely interact with the environment around them.

Inclusivity lies at the root of everything Neatebox does, driving the business in its development of digital solutions to the everyday problems encountered by many with accessibility issues, but with all users in mind – a one-product-fitsall solution.

WHY ARE THEY WORTH WATCHING? Advances in BLE and beacon technology have paved the way for the creation of proximity-aware technology. The BLE equipment emits data in regular blips, which trigger the release of information via the smartphones of passers-by with the app installed.

Neatebox’s soon-to-be-released pedestrian crossing app lets users activate pedestrian crossings without needing to physically press a button. For users in wheelchairs, this avoids the need to awkwardly manoeuvre close to the kerb. The technology also has myriad applications for the tourism sector, empowering visitors to guide themselves around tourist destinations or attractions using their own smart devices.

Neatebox is already in talks with visitor attractions in the UK and further afield. > Find out more: www.neatebox.com http://apple.co/1PPw7KM

BUCHANAN BUSINESS AWARDS

Pilot Beer co-founder Matt Johnson (centre) with councillors Barrie and Munro.

The Buchanan Business Awards were established in 2015 to commemorate the late city councillor Tom Buchanan.

Organised by Business Gateway and the Capital City Partnership in conjunction with the Royal Bank of Scotland (RBS), the Awards celebrate Edinburgh’s most dynamic micro-businesses.

There are a total of five categories, with a grand prize of £3,000 and smaller prizes of £1,000. Last year’s awards went to tour operator Flavours Holidays, patisserie

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Mademoiselle Macaron, luxury underwear brand Cahoonas, and bicycle maintenance firm Grease Monkey, with micro-brewery Pilot Beer taking both the 'Growth Business of the Year' and 'Overall Business of the Year' awards.

Pilot Beer was founded by Matt Johnson and Patrick Jones, two master’s students at Heriot-Watt University’s International Centre for Brewing and Distilling. In 2013, the duo acquired a five barrel brewing kit from the McCowan’s Brewhouse and

relocated it to a workshop in Leith, producing their first beer in November of that year. Specialising in unfined pale ales, Pilot Beer’s products are now stocked in drinking establishments throughout Edinburgh and beyond.

“Starting a small business can be a lonely business,” said Matt. “A wee bit of recognition can really give you a much-needed boost. That, for us at Pilot, is what makes the Buchanan awards so special. Having our hard work recognised by an external organisation has really helped to reaffirm that we’re on the right track.”

“The prize money has been a lifeline,” adds Patrick. “Like most small businesses, there are financial demands coming from all directions. Our prize money has enabled us to work with an accountant on a series of high-level projections, giving us an attractive set of figures to present to potential investors.”

The winners of the 2016 Buchanan Business Awards will be announced on 22 September at a ceremony held in the RBS Conference Centre. >F ind out more: www.pilotbeer.com

MEXICAN RESTAURANT CHAIN WAHACA AND SPANISH RESTAURANT CHAIN IBÉRICA ARE THE LATEST EATERIES ANNOUNCING THEIR DEBUT AT ST ANDREW SQUARE.

<SNAPSHOTS

A BRIGHT FUTURE FOR PORT EDGAR MARINA Home to Scotland’s largest watersports sports centre, Port Edgar Marina on the outskirts of Edinburgh is benefitting from a £2m investment designed to boost the area's appeal as a year-round visitor destination.

The plan will enhance the existing 300 berth marina, which already hosts a full range of marine services, including chandlers, boat showrooms and engineering workshops, with a new retail and food and drink offering. The business is also committed to achieving the 5 Anchor standard, under the Yacht Harbour Association’s global marina accreditation scheme.

With spectacular views across the Firth of Forth, the marina provides a unique panorama of the Forth Bridge World Heritage

Site, as well as the Forth Road Bridge and new Queensferry Crossing, currently under construction.

“Port Edgar has a rich and varied history and we’re making sure that it has an exciting future,” said Russell Aitken, managing director at Port Edgar Marina.

“Over the past year, we’ve secured the future of the marina as a sailing destination by dredging the harbour, bringing in a mobile crane, and improving the security, lighting and access to the slipway for boat handling. By upgrading our facilities, we’re opening up the marina to a much wider audience.” >F ind out more: www.portedgarmarina.co.uk

BORDERS RAILWAY CORRIDOR IS OPEN FOR BUSINESS Since opening last September, the Borders Railway has been delivering economic, social and environmental benefits. With trains running between Edinburgh and Tweedbank in the Scottish Borders every half hour, the railway is unlocking new opportunities for businesses and property developers along the 48km route.

Over the next few years, the Edinburgh city region is expected to see significant economic and population growth, along with rising tourism volumes, a diversifying business base and increased demand for skills. To help maximise the benefits of this growth to the city region, the Borders Railway partnership has appointed Phil Dibsdale as inward investment manager.

“It’s all about place-making’, says Phil, “creating great communities to live, work and learn in, as well as opening up great destinations to visit. I look forward to working with investors and to bringing forward these great opportunities.”

An experienced development and regeneration professional, Phil previously advised Westminster City Council on its commercial and housing renewal

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programme and was involved with development proposals around Crossrail.

The new £5.2m Galashiels Transport Interchange building is an excellent example of a speculative commercial development in response to the opportunities presented by the Borders Railway. The office space within the Transport Interchange is rapidly filling up with companies recognising the potential of the area and the new transport link. Other mixed-use developments such as Brunstane in Edinburgh, Shawfair in Midlothian and Tweedbank in the Scottish Borders will deliver new homes and employment opportunities.

With nine stations served by the Borders Railway across the city region, there are a diverse range of opportunities for businesses and investors alike. >F ind out more: Phil Dibsdale t: +44 (0)7855 519 564 w: www.bordersrailwayprospectus.com e: phildibsdale@ bordersrailwayprospectus.com

SPORTS DIRECT HAS OPENED A STORE AT THE OCEAN TERMINAL MALL IN LEITH.

Free Wi-Fi will be available throughout Edinburgh city centre from this summer.

“Beautiful and compelling” Edinburgh has been named Great Britain’s best city for a third year by The Daily Telegraph.

The University of Edinburgh is investing £140m in a biological sciences hub at its King’s Buildings campus, beginning with a redevelopment of the Darwin Building to provide laboratory space for over 350 researchers.

Bar Works is to convert a number of traditional red telephone boxes in Edinburgh into hireable 'mini-offices' with Wi-Fi, screens, scanners, printers, and coffee.

Social media giant Facebook has acquired Edinburgh-based audio technology startup Two Big Ears for its virtual reality projects.

Mara Seaweed, which supplies seasonings made from seaweed harvested from the Scottish shoreline, is expanding into the USA after signing deals with Chefs' Warehouse and Blue Apron.

Cancer Research UK has awarded £4m to the Edinburgh Cancer Research UK Centre to investigate brain tumours and develop new treatments. The University has also opened the new Nicola Murray Centre for Ovarian Cancer Research.

Three Edinburgh companies have been honoured in the Queen's Awards for Enterprise: Babcock LGE Process, the world’s leading designer of cargo handling systems for liquefied gas; Vegware, a manufacturer of biodegradable catering equipment; and the Kettle Collective, architects for Europe’s tallest building.

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MADE in EDINBURGH

*A privately-held company valued in excess of $1bn USD.

ADMINISTRATE Widely tipped as Scotland’s next tech unicorn*, Edinburgh-based software developer Administrate recently opened its first overseas office in Montana, USA, and in June, announced it had recruited Andrew Williams, formerly of FanDuel, as its new chief technology officer.

From its headquarters in CodeBase, the UK’s largest tech incubator, Administrate is revolutionising the management and delivery of training and development with a suite of tools. Its cloud-based training and learning management and online course booking systems can halve the workload of training providers.

Three powerful and flexible modules – a training management system, a learning management system, and website integration tools – let training providers automate much of their operations while storing all essential information in one central portal. From the management of training resources,

and customer relationship management to a powerful e-learning delivery platform, Adminstrate’s tools are transforming the way training is organised.

Established in 2011, Administrate now employs a team of over 40 in software development and operations. The business has built a worldwide client base, among them publisher Elsevier, professional services provider PwC, shipbuilder Boston Whaler, and truck and bus manufacturer Scania. The Montana office will give Administrate ready access to its fast-

growing client base on the Pacific coast.

The future looks bright for Administrate, with the learning management and e-learning markets worth around $107bn USD and rising. This vast potential has helped Administrate win in excess of £3.6m over three funding rounds, with backers including local syndicate Archangels and the Scottish Investment Bank. > Find out more: www.getadministrate.com

GROWTH FUNDING FOR TECH COMPANIES Seven of Edinburgh’s technology companies are to expand after securing growth funding.

University of Edinburgh spinout Sofant Technologies has won a £1.5m grant to help bring its 'smart antenna' to market by 2018. The antenna automatically seeks out the strongest Wi-Fi signal in range, improving connectivity and reducing power draw.

Courseware provider CogBooks has raised £1.25m from publisher DC Thomson, NESTA and the Scottish Investment Bank (SIB). The funding will be used to promote CogBooks’ web-based adaptive learning platform to higher education providers in the UK and USA. Optoscribe has secured £1.2m of investment in an oversubscribed funding round led by local syndicate Archangels.

A spin-out from Heriot-Watt University, Optoscribe supplies high-performance components for telecommunications systems. The funding will be used to recruit

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new staff and expand manufacturing capabilities.

Environmental consultancy Ecometrica – which analyses satellite data to measure environmental impacts – has agreed a £622,000 borrowing facility with Clydesdale Bank to grow its sales and marketing teams. Ecometrica has over 250 clients worldwide, including the UK and European space agencies.

Online booking company Appointedd has secured £595,000 in a funding round led by angel syndicate Equity Gap and the SIB. The funding will be used to treble headcount and grow the company’s client

base. Appointedd’s cloud-based software offers a suite of appointment booking features.

Spoonfed, a developer of catering management software, has also secured £585,000 from Equity Gap and the SIB, which it will use to refine its technology and enter new markets in Europe and East Asia.

Finally, panoramic camera company NCTech has received a £500,000 loan from Barclays Innovation Finance, enabling it to boost manufacturing volumes to meet growing demand. NCTech recently launched iris360 (left), an automatic 360° camera approved by Google for its 'Street View Trusted' programme. > Find out more: www.sofant.com www.cogbooks.com www.optoscribe.com www.ecometrica.com www.appointedd.com www.getspoonfed.com DIGITAL MARKETING AGENCY MEDIAWORKS HAS OPENED AN OFFICE ON PRINCES STREET.

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GERMAN INVESTMENTS

Atria: a successful speculative development.

Investor confidence in Edinburgh’s office market has received a boost with the acquisition of a pair of trophy assets by two leading German real estate investors.

Deka Immobilien has purchased the 18,600m2 Atria office development for £105m (a yield of 5.5%) in one of the largest transactions in the history of the city’s property market. Speculatively developed by the City of Edinburgh Council in 201213, Atria comprises two adjoining office

blocks in the heart of the Exchange District, Edinburgh’s financial and professional services hub. Tenants include PWC, IBM, Aon, Alliance Trust, Brewin Dolphin, the UK Green Investment Bank and the Law Society of Scotland, with the Co-operative Food and Café Klaris occupying retail and leisure units on the ground floor.

“The leasing fundamentals in Edinburgh, where demand for prime office space increased by 44% in 2015, are encouraging,”

said John Heaver of Savills, who advised on the purchase. “Moreover, Deka was attracted to the comparable good value as Scotland’s investment market continues to trade at a discount to the rest of the UK.” Meanwhile, TRIUVA Kapitalverwaltungsgesellschaft has purchased the recently-completed 11,148m2 Quartermile 4 office building for £68m. Speculatively developed by M&G Real Estate, Quartermile 4 is one of the final elements of the redevelopment of the former Royal Infirmary of Edinburgh campus. The building is fully let to technology firms Cirrus Logic and FanDuel.

TRIUVA previously acquired 63-65 George Street – a 1,700m2 office and retail property let to Cushman & Wakefield and Jack Wills – for £12m in January.

“Edinburgh currently provides for an above-average risk return profile," said Manuel DeVigili of TRIUVA. In total, over £450m of office property changed hands in Edinburgh in 2015/16, with typical prime yields of between 5.25% and 5.75%. > Find out more: www.deka-immobilien.de www.triuva.com

NEW ARRIVALS NORWEGIAN WHAT DO THEY DO? Oslo-based Norwegian is one of Europe’s largest budget airlines, last year carrying 26m passengers to over 135 destinations.

From humble beginnings as a regional airline servicing Western Norway, Norwegian now boasts a valuation of 11.8bn NOK (£1.0 bn) and a fleet of more than 100 aircraft.

Despite its focus on affordability, the airline has received plaudits for the quality of its fleet: the average age of Norwegian’s aircraft is less than four years, including 10 Boeing 787 Dreamliners, one of the world’s most technically advanced passenger aircraft. Passengers enjoy free Wi-Fi and comparatively generous legroom. In the 2015 SkyTrax World Airline Awards, Norwegian was named the best low-cost carrier in Europe and the third best worldwide.

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WHY THE MOVE? Norwegian has hugely ambitious expansion plans. It has more than 250 aircraft on order, including a further 32 Boeing 787 Dreamliners by 2020. Having built a solid base in Europe, the airline now hopes to corner the elusive low-cost long-haul market.

The UK is a key growth market for Norwegian. Around 4m British passengers fly with Norwegian every year from Edinburgh and three other airports, and the airline is currently contemplating a dual listing on the London Stock Exchange.

WHY EDINBURGH? Over 1m passengers have flown with Norwegian from Edinburgh since 2009, with the airline currently offering lowcost flights to six destinations across

CASUAL DINING CHAINS BELLA ITALIA, CHIQUITO, FILLING STATION, AND FRANKIE AND BENNY’S ARE TO OPEN IN THE FOUNTAINPARK LEISURE CENTRE IN FOUNTAINBRIDGE.

Europe. In May, Norwegian announced plans to create a base at Edinburgh Airport, with the ambition to begin running trans-Atlantic flights to hub cities such as Boston from 2017.

“Edinburgh will play an important role in our future UK growth and our long-term ambition is to deliver new, direct long-haul flights,” said chief executive Bjørn Kjos. “The new fuelefficient aircraft we have on order will make it possible to launch low-cost trans-Atlantic routes from Edinburgh.

We will also be looking into how we can create new routes from Edinburgh to feed into our fast-growing global network at London Gatwick.” >F ind out more: www.norwegian.com

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As director of Festivals Edinburgh, Julia Amour helps Edinburgh retain its status as the world’s leading festival city by supporting and championing a year-round programme of 12 major festivals.

Julia Amour

Director of Festivals Edinburgh

IE> How does Festivals Edinburgh bring value to the city?

JA> From Hogmanay to Halloween (the Scottish New Year to the Celtic ‘Day of the Dead’), Edinburgh is known around the world as the festival city. Many people are familiar with the Edinburgh International Festival and Edinburgh Festival Fringe (both of which celebrate their 70th anniversaries next year) and the Edinburgh International Film Festival; but the truth is that Edinburgh’s annual festival programme brings talent to our streets for nine months of the year, every year. Combined attendances last year topped 4.2m.

Excluding the Olympics and World Cup, which are held every four years, that makes Edinburgh’s festivals the largest cultural event in the world.

Our board comprises the directors of each festival, and we work with the City of Edinburgh Council, Scottish Government and national agencies in Scotland and the UK to position Edinburgh as an international centre of festivals excellence in art, culture and science.

IE> What do the festivals mean for Edinburgh?

JA> They are Scotland’s world-leading cultural brands, attracting 25,000 artists from 70 countries, more than 1,000 media

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professionals and another 1,000 producers and directors. They are a key asset in Edinburgh’s tourism success as the most popular UK city destination outside London, and almost two-thirds of visitors to Scotland use Edinburgh as a gateway. In 2010, they represented a total economic contribution of £261m, and supported more than 5,000 jobs.

Earned income across all the festivals rose by more than 30% between 2010 and 2015.

But we can’t be complacent. Our strategic plan for the next five years has collaboration as the key to our continued growth.

IE> What are the priorities for Festivals Edinburgh looking ahead?

JA> We want to remain the ‘world’s leading festival city’, extend our reach and build new audiences, whether by engaging new areas of the city, reaching more visitors while here, or adopting new ways to reach out to an international audience.

Our directors are constantly looking for inspiring new works, sharing best practice, and learning from other festivals. Only by learning can we successfully innovate.

The city’s academic and technology communities are also important partners.

We piloted the world’s first public mobile app with Nokia in 1999 and continue to pioneer. We develop ideas on smart

tourism, use our event management expertise to support other events, and have just partnered on a national seminar on innovation in marketing with EventScotland and Edinburgh Napier University.

IE> Innovation has been at the heart of Edinburgh’s Festivals since 1947. How is that ethos reflected today?

JA> Working with Scottish Enterprise, Creative Scotland and Innovate UK, we use the amazing platform we have to help companies prototype new products, software and services, as part of our collaborative ethos. This has broad benefits.

The creative industries are one of Scotland’s fastest-growing economic sectors, and Edinburgh’s reputation as a thriving, creative and innovative environment offers a platform for wider development and draws talented individuals from across all sectors.

The city is home to CodeBase, the UK’s largest technology incubator, and its director Jamie Coleman is on the board of the Edinburgh International Festival. We partner with many technology companies, not just here in Edinburgh, and aim to be a generous partner, allowing assets such as the API database of tagged programme information to be used freely where we see a benefit for the city.

FIT-OUT AND REFURBISHMENTS COMPANY AKP HAS OPENED AN OFFICE IN SOUTH GYLE TO SERVICE ITS CLIENT BASE IN EAST SCOTLAND.

<10QUESTIONS IE> What does the city need to do to support the demand for accommodation, venue space and transport?

JA> There remains plenty of room for the festivals to grow as the city does, and we can play a positive role in developing new spaces. Some growth will be organic, since the largest of our festivals – the Fringe – has an open access ethos, so events are staged wherever a venue can be created. When the Assembly Rooms was redeveloped, George Square took over and now both areas flourish each August. Many of the festivals are working on plans to expand their footprints further. Districts like Leith, which has strong links with the Mela and Jazz and Blues Festival – and where the Art Festival is this year displaying a full size Dazzle Ship in the port – offer purpose-built and ‘found’ space that would be ideal.

IE> What investment is required?

JA> World-class cultural events need a world-class city in which to flourish, and we need to nurture our cultural infrastructure and public realm. The Festival Theatre has the UK’s largest stage outside London and built a flexible studio space in 2014. Digital infrastructure is also vital: we are working with the University of Edinburgh on their vision for a digital arts arena connecting the Edinburgh College of Art with the School of Informatics. This will focus on live digital broadcast and recorded performances, enabling performers to collaborate and interact with audiences in new ways.

IE> How are the individual needs of the 12 festivals managed effectively?

JA> They each have their own interests but all gain a strategic advantage in working together – and our role is to support collaboration, represent the festivals collectively and develop a strategy to support their long-term growth. There are five key areas of the strategy to sustain the festival’s success – engagement; digital; national and global positioning; investment and enterprise; and “festival city”. We bring together working groups of specialists to look at those topics wherever the festivals think we can add value through joint action.

IE> How do the festivals share their individual expertise?

JA> They can each act as a pathfinder and share their experience, which is immensely powerful given the range and scale of our offer. For example, Edinburgh’s Hogmanay was a pathfinder for the #Blogmanay Twitter campaign, which generated unprecedented levels of engagement

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Edinburgh’s 12 annual festivals are…

Edinburgh’s Hogmanay Edinburgh International Science Festival Imaginate Festival Edinburgh International Film Festival Edinburgh Jazz and Blues Festival

Dec-Jan April May-June June July

Edinburgh Art Festival

July-Aug

Edinburgh International Festival

August

Edinburgh Festival Fringe

August

The Royal Edinburgh Military Tattoo

August

Edinburgh International Book Festival

August

Edinburgh Mela

August

Scottish International Storytelling Festival

October

science festival in Abu Dhabi. Festivals Edinburgh, Creative Scotland and the British Council all partner on ‘Momentum’, our international delegate programme, providing an intensive programme to fasttrack relationships with key cultural figures from more than a dozen target countries: including government officials, producers, funders, curators, cultural entrepreneurs and the media. Edinburgh has an unparalleled asset in the festivals to boost our reputation as a global cultural capital and a great place to live, study and work.

globally for the festival and for Edinburgh as a destination. It is now sharing its social media experience with the other festivals and Edinburgh’s wider tourism sector.

IE> How is Festivals Edinburgh helping to enhance the city’s global cultural brand?

JA> Edinburgh’s festivals reinvent themselves every year and often reach out beyond their peak seasons. Earlier this year, the Edinburgh International Book Festival took over one of the city’s largest venues to host Trainspotting author, Irvine Welsh, in discussion with one of the iconic film adaption’s stars, Robert Carlyle, to mark the film’s 20th anniversary. Last year saw a collaboration for school pupils by the Science Festival and Film Festival at the National Museum of Scotland, screening the movie The Martian alongside a live stream of British astronaut Tim Peake joining the International Space Station. Both the Imaginate Festival and the Storytelling Festival have year-round outreach programmes. And the Tattoo had a smash hit tour to Australia and New Zealand last winter and hopes to tour in the Middle East and China in the next few years.

IE> How can the festivals enhance their offer year-round?

JA> Festivals are growing cultural and economic phenomena around the world and the Edinburgh festivals are all leaders in their sphere, deeply Scottish yet profoundly international at same time: for example, the Book Festival has established the Word Alliance, a collaborative venture which aims to present the very best authors to audiences across the globe; the Fringe has created the World Fringe Congress which will be hosted in Montreal for the first time in 2016; and the Edinburgh International Science Festival now also runs an annual

THE SANIPEX GROUP HAS OPENED A BAGNO LUXURY BATHROOM SHOWROOM ON MELVILLE PLACE IN EDINBURGH’S WEST END

Julia Amour, Director of Festivals Edinburgh.

Julia Amour has more than 20 years of experience across the culture, education and international trade and investment sectors. She joined Festivals Edinburgh as director in December 2015.

Prior to taking up this post, Julia worked for the British Council from 2007, becoming acting regional director for the UK in 2014. Key projects included a global education legacy programme for the Glasgow 2014 Commonwealth Games created with the BBC and Commonwealth Secretariat; a major international partnership with Hull 2017 City of Culture; and building a six-way partnership of national agencies to help the UK’s cultural sector access the European Union’s Creative Europe programme.

www.edinburghfestivalcity.com

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 9

FRESHER OPPORTUNITIES: STUDENT ACCOMMODATION IN EDINBURGH With a student population of more than 78,000, meeting the accommodation needs of Edinburgh’s burgeoning population is producing a dynamic sector full of opportunities… and challenges.

FISH AND CHIP CHAIN HARRY RAMSDEN'S HAS OPENED A RESTAURANT AT THE 3 BRIDGES IN SOUTH QUEENSFERRY. 10 INVEST EDINBURGH | JULY TO OCTOBER 2016 |

<FEATURE

Holyrood North: a 924-bedroom postgraduate development by the University of Edinburgh.

R

anked the second best UK city in which to study (after London*), Edinburgh enjoys a global reputation as a centre of academic excellence at the heart of the UK’s knowledge economy; a capital city where the student experience is enhanced by a cultural offering that is second to none.

Increasingly central to Edinburgh’s university proposition is an ability to offer modern, comfortable, well-located and affordable accommodation for both undergraduates and postgraduate students.

In recent years, demand for quality accommodation has outstripped supply.

In that respect, Edinburgh is typical of other leading UK university cities, which have all witnessed strong rental growth of between 3-4% per annum as a result of highperforming universities and an under-supply of student accommodation.

* QS World University Rankings House in Multiple Occupancy

†

www.investinedinburgh.com

While the University of Edinburgh, HeriotWatt University and Edinburgh Napier University all guarantee accommodation for first year undergraduates, the remainder of the student population – many of whom arrive in Scotland from overseas – largely rely on the private rented sector to meet their accommodation needs. It’s a trend mirrored across the UK, helping to fuel an investment boom in purpose-built student accommodation (investment totalled a record high of £5.7bn in 2015).

In Edinburgh, these high levels of investment have seen a number of purposebuilt developments recently completed, with a further seven currently under construction.

Once complete, these will deliver more than 1,400 additional dedicated student bedrooms. A further 11 developments have received planning approval and will provide accommodation for a further 2,200 students, while another 10 developments in the planning pipeline have the potential to deliver a further 1,149 rooms.

This marketplace has emerged as a high yield, low risk investment for investors. Recent years have witnessed a shift in students' expectations and requirements, with demand moving away from the traditional HMO† flat

ENVIRONMENTAL CONSULTANCY ENVIROCENTRE HAS OPENED AN OFFICE IN THE REDHEUGHS RIGG BUSINESS PARK IN WEST EDINBURGH.

epitomised by comedies such as The Young Ones and Fresh Meat into institutionallyfunded purpose-built high quality housing offering amenities such as en-suite facilities and hubs for socialising.

New student accommodation brands such as Ziggurat Student Living and Vita Student are redefining the sector with upscale developments that emphasise design, location and quality. Developers are also waking up to the opportunities presented by the distinct postgraduate student market – a sector typically seeking high quality accommodation in smaller developments, and often for the duration of their university education, not just the first year of study.

Proposals such as Vita Student’s planned redevelopment of a derelict former dance hall in the Fountainbridge neighbourhood are typical of this desire for quality. The project will deliver 250 self-contained student apartments with studios room, kitchens and en-suite shower rooms, as well as communal space in the heart of the building.

As student expectations have risen, Edinburgh’s universities have been proactive in refreshing, updating and investing heavily in their own housing stock.

“We’re forecasting a 20% growth in student numbers over the period,” explains Eric Munro, director of property and facilities with Edinburgh Napier University. “That growth is going to be driven by overseas students, so we need to provide facilities suitable for

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 11

both postgraduate taught and postgraduate research students.

“It’s a fact that, in general, undergraduate and postgraduate student populations don’t mix when it comes to residential provision – their requirements differ greatly. As a result, we are currently seeking to secure up to 500 additional beds – ideally in two projects of up to 250 beds each. One will be tailored towards the postgraduate market, characterised by larger rooms, improved facilities and increased working space.

“Looking at the development of the postgraduate market in particular, we’re likely to see an increase in the development of two bedroom student flats,” highlights Eric. “In the event that market conditions change, the apartments can be remarketed and sold as contemporary residential apartments.”

CORE BUSINESS Operating three key sites under long-term management leases, Edinburgh Napier University is typical of UK universities in that it doesn’t own any accommodation outright.

Working closely with private developers AMA and Cityheart, Napier’s current portfolio of apartments provide 1,241 student rooms, mostly in the form of six or eight-people cluster apartments, supplemented through two additional nomination agreements, which add a further 250 beds.

“Ultimately, we want to move away from nomination agreements. However, as we’ve seen in the past, moving from concept to the reality, can take four to five years,” says Alex Ratcliffe, Napier’s head of accommodation services. “We’ve always enjoyed good working relationships with private developers. We share best practice, we maintain a dialogue, competition is good. It’s provided us with the flexibility we need while new developments are under development.

“IT’S ABOUT FLEXIBILITY OF ROOM TYPE AND IMPROVING STUDENT CHOICE.” – ALEX RATCLIFFE, EDINBURGH NAPIER UNIVERSITY. “Every building we now operate is less than five years’ old. That was a strategic decision, placing our portfolio in a much better position – it’s now competitive with the private rented sector and other institutions.”

Edinburgh Napier University is not alone in viewing student accommodation as part of core business. “Number one priority is academic reputation and expertise in a student’s area of interest. We’re very lucky

that Edinburgh enjoys a fantastic reputation around the world, so attracting students is not the problem,” explains Eric. “However, we have to ensure that our wider offer – of which accommodation is a keystone – meets our prospective students' expectations. It isn’t so much a deciding factor in choosing where to study, but it can be a detractor.”

It’s a view shared across Edinburgh’s academic institutions. “Without doubt, the student housing sector is undergoing something of a transformation,” adds Malcolm Deans, director of campus services at HeriotWatt University. “There has been a significant rise in the number of dedicated student beds offered in and around the city, both by the universities themselves and the private rented sector. That’s reflected in recent investments in our own housing stock.”

In the past few years, Heriot-Watt University has undertaken an extensive project to renew its student accommodation stock, on its main Edinburgh campus to the west of the city.

The latest phase of the redevelopment sees the imminent opening of a new 465-bedroom facility.

“We’ve actually increased the number of beds we offer on campus to more than 2,000, which enables us to offer an accommodation guarantee to all first year students – irrespective of where they come from,” says Malcolm. ”We offer a range of accommodation types, 95% of which are now self-catered, with student preferences usually dependent on level of study. For example, postgraduate students value our studio apartments, while undergraduates enjoy the community side of social living. All our students on campus have access to a wide range of facilities, including the world-class sports facilities at the soon-to-open Oriam, Scotland's Sports Performance Centre.”

Recent investment at Heriot-Watt represents a step change in the quality of accommodation on offer. Price remains a key concern for students, but so too does location, safety, having an en-suite bathroom, the availability of high speed broadband, kitchen size and overall quality.

“While our current on-campus capacity means we have no need of partnership or nomination agreements with private developers, we do work closely with developers to help ensure a range of accommodation types are accessible to continuing students,” adds Malcolm.

Price inflation across the city has placed considerable pressure on the private rented sector. With recent changes to the Private Housing (Tenancies) Scotland Bill and tax relief on buy-to-let properties, it is anticipated that interest in the buy-to-let market is likely to wane, leading to further pressure on

rents. Private developers will play a crucial role in maintaining supply and quality, and in ensuring that accommodation is not segregated into student and non-student blocks. That will be key to promoting social integration and helping to tackle the issue of affordability.

COUNTING THE COST Cost remains of prime concern for many students. While studying in a compact and cosmopolitan city like Edinburgh undoubtedly brings many academic, social and cultural benefits, it can be expensive.

With a perceived imbalance between supply and demand when it comes to purpose-built student accommodation, competition for sought-after locations of the right quality and the right price is fierce.

“We’re certainly getting feedback from the student population that they would like to see more budget accommodation options available on campus,” says Malcolm. “It’s an issue on which we continue to engage with the student body, and if demand becomes sufficient then it’s something we would look to provide.”

The Edinburgh University Student Association (EUSA) has recently looked in detail at the affordability challenge facing students in the city. Its research points to the growing disparity between the cost of private student halls and the average private let, with dedicated student accommodation seen as unaffordable by many students. Highlighting a 56% premium on private student halls when benchmarked against a private HMO tenancy and a 33% premium when compared to standard university-managed undergraduate accommodation, the EUSA is seeking to work with the University of Edinburgh to ensure future accommodation is affordable.

“Cost remains the biggest factor in a student’s search for housing. Lack of choice has a multiplier effect with the result that there is widespread acceptance that this is just how things are in Edinburgh," says Urte Macikene, vice president of services at EUSA. “We feel the university has a real responsibility to address that need for support. The issue isn’t specific to the student population, but it is increasingly affected by rising prices and is therefore more vulnerable to a highly competitive housing marketplace.

“There is now universal recognition that housing is a wider issue across Scotland.

Greater supply is required to cool the market.

“While universities aspire to make degree programmes as accessible as possible to those from lower income families and disadvantaged backgrounds, plans to increase student intake numbers are likely to DIAMOND MERCHANT AND JEWELLER CHISHOLM HUNTER HAS REVEALED PLANS FOR A STORE ON PRINCES STREET.

12 INVEST EDINBURGH | JULY TO OCTOBER 2016 |

<FEATURE <FEATURE

(Main and top right): Edinburgh Napier University’s Bainfield student halls.

(Bottom right): EHSC co-op tenants make collective decisions about their home.

exacerbate the affordability issue and prove counter productive.

“Our research highlights that many students are put off living in private students halls due to their high cost. Many would much rather live in smaller apartments, while paying less rent.”

One alternative housing model is already delivering a combination of affordability, while empowering students to take control of their own housing destiny. The Edinburgh Student Housing Cooperative has been operating for two years, since partnering with Castle Rock Edinvar housing association to acquire a former Edinburgh Napier University hall of residence.

With 106-members, the EHSC is the largest housing co-op in the UK, and models itself on a concept which has proved successful in North America. Operating a collective enables the EHSC to keep rents low – the lowest student rent in the city at just £305/month

for a bedroom – but also generates an annual cash surplus of £20k-£30k – funds which are reinvested into the property. It’s a model that the EUSA and EHSC would like to see replicated across the city.

It’s clear, there is no one-size-fits-all solution to meeting the needs of Edinburgh’s thriving student population. Different groups require different products. However, continuing investment in the sector is, without doubt, helping to increase supply to meet the growing demand, delivering greater competition, wider choice and an improved standard of student accommodation.

The City of Edinburgh Council’s Investor Support team t: +44 (0) 131 529 6600 e: invest@edinburgh.gov.uk

STUDENT ACCOMMODATION UNDER CONSTRUCTION IN EDINBURGH Location

Developer

No. of Beds

34B Haddington Place

S. Harrison

240

The Freeway

Heriot-Watt University

465

Lutton Place

Crosslane Student Developments

237

Buccleuch Street/Clerk Street

Empiric

86

Buccleuch Place/Meadow Lane

University of Edinburgh

246

49 Lothian Street

Arduni

11

46-56 Buccleuch Street

University of Edinburgh

138

www.investinedinburgh.com

MEXICAN RESTAURANT CHAIN BARBURRITO AND INDIAN RESTAURANT CHAIN SHRI BHEEMA’S ARE DEBUTING IN EDINBURGH ON FORREST ROAD AND NICOLSON STREET RESPECTIVELY.

CLEARER GUIDANCE FOR DEVELOPERS Recent changes to Student Housing Planning Guidance, adopted by the City of Edinburgh Council in February 2016, seek to balance the needs of developers and the wider community.

In recent years, student housing has been consented on sites that would previously have delivered much needed housing. Given the continued need to deliver housing, including through brownfield development, it is appropriate to ensure that the accommodation need for students is balanced with the needs of the wider community.

The new guidance seeks to address this through a requirement for housing as part of larger proposals. The requirement is to provide general housing as part of a mix on sites greater than 0.25ha. This will rebalance the mix of land, help to maintain sustainable communities and contribute to good placemaking. The general housing element of these new developments will also be subject to the Council’s affordable housing policy. The guidance, therefore, reflects a strategy to meet the continued need for student accommodation, in suitable locations and quantities, while delivering this in conjunction with much needed market and affordable housing.

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 13

ROUND TABLE: Alex Ratcliffe, head of student accommodation, Edinburgh Napier University The city is ideally placed to provide attractive and sector-leading purposebuilt student accommodation. From students’ perspectives, some of the key requirements for accommodation when researching where to study and live are location, proximity to their place of learning, atmosphere, and the quality and affordability of accommodation. Edinburgh is a small and easily navigable city and student accommodation is rarely far away from areas for socialising and the locality of the main universities, plus it’s also still generally considered a safe place to live.

At Edinburgh Napier University, we consider delivering a successful development to be dependent upon a number of factors including the atmosphere, environment, location and cost. These can range in importance but ultimately success depends on a financially sustainable model, a living environment that meets student expectations and a range of soft services that contribute towards enhancing the student experience.

Over the last three years, there has been considerable investment and growth in our housing portfolio. We recognise the importance of providing our students with modern, purpose-built student accommodation and an environment where they can feel part of a student community. Through active engagement with our students and a collaborative working approach with internal departments, including the Edinburgh Napier Student Association, our aim is to provide accommodation that enhances students’ wider university experience.

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Lucy Skinner, accommodation services manager, Heriot-Watt University The need for a range of affordable student accommodation options with flexible let periods continues to grow across the city as universities invest in widening participation and international exchange programmes. The current purpose-built student housing stock was initially aimed at the top end of the market.

However, a recent trend has seen new developments offer a broader range of price options and let periods under one roof. This allows for social integration of students from varying backgrounds and cultures and is something we would like to see more of.

Heriot-Watt University’s ‘Go Global’ programmes offer opportunities for inter-campus transfers between our Edinburgh, Malaysia and Dubai campuses, as well as a number of exchange programmes with other overseas institutions. This has seen an increase in demand from students requiring accommodation for one semester (4-6 months) rather than the traditional 9-12 month let period. This is something that some providers have started to offer in the last couple of years.

“INTEREST RATES ARE LOW AND STABLE, AND EQUITY IN THE SECTOR IS ATTRACTED TO EDINBURGH AS IT IS A PRIME REGIONAL TARGET.”

Urte Macikene, vice president, Edinburgh University Student Association Students need quality, affordable housing. Those in Edinburgh face a highly pressurised rented sector where rents have been rising far faster than inflation. In a EUSA survey, students overwhelmingly chose cost as the most important factor in their search for a suitable place to live, followed by location.

In recent years, student housing has largely taken the form of purpose-built student halls. A EUSA survey found 75% of respondents did not even consider these halls because of their cost. While developers may be able to fill rooms, those who expand housing opportunities for the less well-off will find themselves with many more, and happier, students at their door.

Students will gladly take a smaller room for a lower price, so new developments should steer clear of luxury en-suite rooms, in favour of a greater number of affordable rooms, which will prove more popular.

These should incorporate social living space and give students flexibility over their tenancies. Many student housing developments are currently empty for parts of the summer, as they only offer ninemonth tenancies, though many students would be happy to stay.

A student co-operative with 106 beds on the Bruntsfield Links has been operating successfully for two years. Co-operative development, via loan or lease, offers the opportunity for a modest but secure return, while creating a thriving student community that’s completely self-managed.

A network of student co-operatives would be unprecedented in the UK, and would be a major attraction for students nationally and internationally.

PROPERTY MANAGEMENT COMPANY SPEIRS GUMLEY HAS OPENED AN OFFICE AND STAFF TRAINING HUB IN EDINBURGH. THE COMPANY CURRENTLY MANAGES 1,400 PROPERTIES IN THE CITY WITH PLANS TO ADD ANOTHER 600 THIS YEAR.

<INSIGHTS

"What are the key requirements for a successful student housing development and how well does Edinburgh fulfil those requirements?"

Jim Pike, director and shareholder of Abodus Edinburgh, is a founding investor in Ziggurat, which has developed student accommodation across Edinburgh.

Edinburgh provides many of the characteristics required for a successful student housing development – multiple prestigious universities; high demand from international students; and the bonus of high summer occupancy driven by tourism and the festivals. The under-supply of modern student accommodation drives high occupancy levels and sustainable longterm rental growth.

The risks are similar to other prime regional cities in the UK. Construction costs are rising significantly and putting appraised equity returns under pressure.

Rental growth assumptions also tend to underperform as the supply shortfall attracts more new developments (often in secondary locations). Location is everything, and while central locations will outperform over the medium to long-term, the number of beds now being delivered in secondary locations will mean flat rental growth over the short-term.

The market is a long way from saturation, but site location is key.

Investment yields are also beginning to look a bit keen, and we are probably at, or near the top, of the cycle. Longterm sustainable yields for prime direct let student assets in Edinburgh should probably be 6% – 6.5%, so some recent transactions have perhaps been a bit adventurous. However, interest rates are low and stable, and equity in the sector is attracted to Edinburgh as it is a prime regional target, after London, which is now over-valued for many investors.

www.investinedinburgh.com

Nathan BowerBir, on behalf of the tenantmembers of the Edinburgh Student Housing Co-operative Student cooperative housing presents a sustainable, ethical investment promising modest, secure returns. It delivers property management where all shareholders are tenants. At the Edinburgh Student Housing Co-operative we have successfully managed our own housing, for 106 students in 24 flats, running annual surpluses in excess of £50,000 while charging the lowest rent in the city.

Unlike typical developers, co-operatives are flexible to a wider range of properties, of variable sizes, states of repair, and layouts.

We gladly work with what we can get.

Demand for co-ops is high, and growing.

Last year, we spent just £15 on advertising, and yet we received ten times as many applications as spaces available. We're helping students across the UK and internationally to set up their own co-ops.

Student co-ops have worked for more than 80 years, housing tens of thousands of students across North America. With further investment at modest returns, we can expand this model across Edinburgh to serve the growing demand for affordable student housing, while providing residents with the flexibility and tools to create their own communities and to serve those around them.

“STUDENTS WILL GLADLY TAKE A SMALLER ROOM FOR A LOWER PRICE."

'PROPER HAMBURGERS' CHAIN BYRON HAS LAUNCHED A SECOND BRANCH IN EDINBURGH, ON LOTHIAN ROAD.

Robert MacKenzie, director of RM Build (Edinburgh).

He is currently developing student accommodation in Pennywell, north Edinburgh.

Although more popular in recent times, a student housing development needs to understand the requirements of the target market and provide value to be successful.

Edinburgh can be expensive and affordable accommodation is problematic for bright students from working families on a budget. We offer exceptional value to students. Our rooms are double bedroom sized, highly insulated and comfortable. We selected Edinburgh-based EMA Architecture to design a contemporary low carbon, brick building. To keep rents affordable we don’t offer en-suite rooms and are located a short bus journey from the city centre. Students can enjoy free Wi-Fi on Edinburgh’s public transport, while enjoying half price rents compared to central locations.

Pennywell is undergoing massive regeneration, with new high quality townhouses and apartments, a new health centre and re-designed shopping centre all bringing new homebuyers into the area. It also connects to the major development area of the Edinburgh Waterfront. Public consultation with the local community has enabled us to build links, while we also support various charities, such as Tomorrow’s People, to provide employment and training opportunities for 16-24 year-olds during construction.

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 15

<MAKINGITHAPPEN

SCOTLAND’S GATEWAY TO THE WORLD Passenger numbers at Edinburgh Airport reached a record 11.5m in 2015/16 – up over 10% on the previous year. Ever-increasing demand coupled with ongoing investment at the airport now sees 32 airlines servicing 179 routes to 126 destinations around the globe.

2016 has seen a flurry of new direct flights announced from Edinburgh Airport. This summer, Edinburgh became the third UK departure point for upstart Icelandic carrier WOW air, which will offer direct flights to Reykjavik with low-cost onward connections to the United States and Canada between July and October. Onward passengers will have a short stopover in Iceland before continuing to Boston, Los Angeles, San Francisco, Washington DC, Toronto, or Montreal.

“With our ultra-low-cost £125 fares to North America, the choice for Scottish holidaymakers just widened,” said founder and chief executive Skúli Mogensen.

Holidaymakers will benefit from the launch of new flights to the sunspots of Bologna, Bordeaux, Bratislava, Gran Canaria, Palma and Poznan by Ryanair this winter, while Jet2 will add new flights to the Mediterranean destinations of Costa de Almeria, Girona, Halkidiki, and Naples from summer 2017.

Another airline rapidly expanding its offer at Edinburgh Airport is Norwegian (see page 7), which will introduce low cost

16 INVEST EDINBURGH | JULY TO OCTOBER 2016 |

direct flights to Barcelona and Tenerife this year, with plans to fly to Boston and other North American cities from spring 2017.

Also entering the trans-Atlantic market is Delta Air Lines, which has launched yearround Edinburgh-New York flights, adding to those already offered by both American Airlines and United Airlines.

Finnish flag carrier Finnair has announced a new three-times-weekly flight between Edinburgh and Helsinki for summer 2017.

Passengers will be able to transfer onwards to destinations in East Asia including Hong Kong and Beijing (the Edinburgh-China Air Link project is continuing to build the case for direct flights between Edinburgh and China).

“We are delighted to welcome this exciting new Finnair service, which builds on the success of Scotland's growing

“THIS SERVICE BRINGS WITH IT THE GROWING MARKET OF NEW VISITORS FROM EAST ASIA.”

global air network by connecting to yet another international hub,” said Malcolm Roughead, chief executive of VisitScotland. “This service brings with it the opportunity for a double boost to Scottish tourism, from the high-spending golf fans from the Nordic region seeking to explore the home of golf, to the growing market of new visitors from East Asia.”

With more route announcements expected in the coming months, the sky appears to be no limit for Edinburgh’s global connections.

www.edinburghairport.com

BUSINESS FINANCE AND MENTORING PROVIDER TRANSMIT START-UPS HAS OPENED AN OFFICE IN EDINBURGH.

<ADDEDEXTRAS

The proposed Holyrood Park Distillery.

A TASTE FOR SOMETHING DIFFERENT Edinburgh has a long association with brewing and distilling, with no fewer than 35 breweries and half a dozen distilleries at the turn of the 20th century. Over a hundred years later, the city’s rich traditions are being resurrected by a new generation of artisan brewers and distillers.

At the forefront of this movement is Innis & Gunn, which has enjoyed a growing global reputation and a meteoric rise in sales since being founded in 2003. Capitalising on the popularity of the craft beer movement, its expanding range of cask-conditioned ales is now a firm favourite with consumers in the UK, Scandinavia and North America.

Founded in 2011 by Andrew Barnett, a graduate of Heriot-Watt University’s International Centre for Brewing and Distilling, Barney’s Beer produces finest quality cask and bottle conditioned beers in the former home of the historic Summerhall brewery. It’s just one of many brewing start-ups in Edinburgh, with recent additions to the craft

www.investinedinburgh.com

brewery scene including Munich-style lager specialist the Edinburgh Beer Factory, Pilot Beer (page 4), and Bellfield Brewery, the UK’s first entirely gluten-free brewery.

It’s not just beer that has been staging a return in Edinburgh, with gin distilling in high spirits in response to the ongoing gin renaissance. Premium brands such as Pickering’s Gin and Edinburgh Gin have been at the heart of a global explosion in Scottish gin sales, with the latter recently opening a new distillery in Leith that boosted annual production capacity from 27,000 to 80,000 cases.

“Provenance remains a differentiator – where the product comes from, who made it, and what goes into it are all crucial ingredients in driving sales. Today’s premium gin market reminds me of the 1970's wine market, with consumers interested in exploring more sophisticated products,” explains Alex Nichol, co-founder of Edinburgh Gin. “Our core product has had 37 different iterations since launch. We’re constantly striving for excellence.”

Another local success story is Daffy's Gin, named London Dry Gin of the Year at last year’s International Wine & Spirits Competition. Since inking a deal with upmarket grocery chain Waitrose earlier this year, Daffy’s premium small batch gin is now stocked in 234 stores UK-wide.

Meanwhile, entrepreneur David Robertson is seeking to create a £3.6m distillery and visitor centre in a historic railway building in Edinburgh’s Old Town.

He hopes to begin production in 2017, ultimately producing 100,000 litres of whisky per year.

THE COMPASS GROUP IS OPENING A CHOP HOUSE RESTAURANT WITHIN THE ARCHES ON EAST MARKET STREET. THE BOUTIQUE RESTAURANT AND BAR WILL OFFER DRY-AGED, FLAME-GRILLED STEAKS.

“We are very excited by the prospect of resurrecting the proud tradition of distilling single malt whisky in Edinburgh following a 90-year absence,” says David, former master distiller for The Macallan Distillery. “Our goal is to create beautiful, hand-crafted single malt whiskies which will stand shoulder to shoulder with the other great single malts.”

The UK’s only university to offer a master’s in brewing and distilling, Heriot-Watt University has been at the heart of the industry’s regional revival.

“We see our knowledge transfer partnership with Heriot-Watt as being pivotal to our business model,” notes Alex.

“All our distillers are graduates and the university helped to design the still at our new distillery in Leith.”

With ever-more-discerning consumers increasingly drawn to quality and provenance, Edinburgh’s burgeoning brewing and distilling industry is combining tradition and authenticity with modern, sophisticated production techniques, branding and distribution channels, squarely positioning the city within the global alcoholic beverages market.

www.innisandgunn.com www.barneysbeer.co.uk www.edinburghbeerfactory.co.uk www.pilotbeer.co.uk www.bellfieldbrewery.com www.pickeringsgin.com www.edinburghgindistillery.co.uk www.daffysgin.com www.icbd.hw.ac.uk

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 17

CREATE IN SHENZHEN This May, five creative and technology companies from the Edinburgh city region visited the mega-city of Shenzhen in China to carve out new opportunities in the world’s second largest economy.

SHENZHEN: FAST FACTS •A city on the Pearl River Delta in southeast China, bordering Hong Kong.

•P opulation of 10.8m (up 5,000% since 1980!)

•G ross domestic product of $266bn USD. •A manufacturing hub with one of the world's busiest container ports.

•N amed a UNESCO City of Design in 2008.

SENSEWHERE’S STORY Aided by the 2015 Edinburgh mission to Shenzhen and the ongoing partnership between both cities, one company has excelled in the China market. Sensewhere, the world’s leading provider of indoor location technology, opened in the F518 Idea Land incubator last May. Since then, Sensewhere has secured investment from Chinese internet giant Tencent and opened offices in Beijing and Shenzhen. www.sensewhere.com

18 INVEST EDINBURGH | JULY TO OCTOBER 2016 |

LUXEMBOURGIAN LABORATORY TESTING GROUP EUROFINS SCIENTIFIC HAS PURCHASED A PHARMACEUTICALS TESTING LAB IN NEWBRIDGE, EDINBURGH FROM EXOVA.

<SPECIALFEATURE COBRA SIMULATION Cobra Simulation supplies bespoke, immersive hardware and software solutions.

The company’s flagship product, the Cobra Curved Display, is a panodome projector screen with applications in simulation, home entertainment, videoconferencing, training and education. www.cobrasimulation.com

E

dinburgh and Shenzhen signed a memorandum of understanding in 2013 to jointly promote their creative sectors, delivering increased trade and investment. The launch of special incubators in each city last year means businesses from Edinburgh keen to break into the Chinese market have temporary access to free office space in Shenzhen, and vice versa.

Earlier this year, the City of Edinburgh Council and the Shenzhen Creative Investment Group (SCIG) launched the 'Create in Shenzhen' competition for companies in the Edinburgh city region interested in breaking into China. The five winners were provided with funding towards flights and accommodation along with local support to help stage a promotional event during an intensive week-long visit to Shenzhen, giving them the chance to cultivate new business contacts, pitch to prospective clients and experience Chinese business culture firsthand. The companies were also tasked with showcasing Edinburgh as a destination for Chinese investors, tourists and students.

Arriving in Shenzhen on 11 May, the delegation began in earnest the next day with a series of familiarisation meetings between the delegates and local partners.

On 13 May, the delegation visited F518 Idea Land for a workshop on doing business in China and a celebration of the one year anniversary of the incubator. F518 Idea Land provides affordable workspaces for artists, designers, digital companies and other creatives.

On 14 May, digital publisher Sainted Media partnered with the Shenzhen-based leisure and media group Fantawild to introduce its 'Monica Pink' franchise to an engrossed audience of local children.

“Our eBook Monica Pink Pet Shrink is available in Simplified Chinese”, said Frances O’Neill, founder and chief executive of Sainted Media. “The live action short film of the eBook won ‘best film’ at a festival in Beijing.”

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Having already made inroads, Sainted Media is keen to partner with a local animation studio and broadcaster to create an animated series for the Chinese market.

Later that day, Cobra Simulation gave a demonstration of its immersive display screen technology, which is to be used in a series of emergency services simulation training centres being created across China.

“The value in our trip was getting a deeper appreciation and understanding of the level of resource and support that’s available,” said Alexander Bradley, managing director at Cobra Simulation. “Networking and building relationships are key.”

Meanwhile, Freakworks held an event at the OCT-LOFT creative quarter. Freakworks’ sister company Freak Films has previously produced a series of advertisements for Chinese television for mineral water company Ganten.

“Our ultimate goal is to establish a Shenzhen base, providing local postproduction services to Chinese companies,” explained creative director Hamish Allison.

On 16 May, Coda Octopus exhibited Echoscope, its unique 3D sonar technology, to an audience of Shenzhen’s oil and gas companies, while Sunamp presented its heat battery at the Shenzhen Nanshan Science & Technology Institute. Sunamp's technology attracted a multi-million pound investment from Chinese backers last autumn. The delegation wrapped up the next day, bringing an end to an intensive week of pitching, networking and fact-finding.

With plans already afoot to bring five of Shenzhen’s leading start-ups to Edinburgh for a reciprocal visit in September – a visit that will potentially lead to their settling in the incubator in Edinburgh – the relationship between Edinburgh and Shenzhen is set to be a long and fruitful one.

www.investinedinburgh.com

EVENT HIRE, DESIGN AND MANAGEMENT SPECIALIST THE BLUE PARROT COMPANY HAS EXPANDED INTO EDINBURGH IN RESPONSE TO GROWING CORPORATE DEMAND IN THE EDINBURGH CITY REGION.

CODA OCTOPUS Coda Octopus is a leading supplier of underwater imaging and surveying technologies, with customers in the oil and gas, construction, defence, salvage and decommissioning industries. Its products include the Echoscope, the world’s only real-time 3D sonar, and GeoSurvey, the industry standard software suite for sonar data interpretation. www.codaoctopus.com FREAKWORKS Freakworks is an awardwinning post-production company. The firm offers a comprehensive range of services, including visual effects, animation, editing, and digitisation. Its sister company, Freak Films, produces original content for television advertisements, brand films, and other clients. www.freak-works.com SAINTED MEDIA Sainted Media is a digital publisher of e-books and apps. Among its products are Global Treasure Apps, an awardwinning interactive travel app that brings visitor attractions to life, and the 'Monica Pink' literary franchise. www.saintedmedia.com SUNAMP Sunamp designs and manufactures highperformance, nontoxic heat batteries. Its patented technology – which enables heat to be stored until it is needed – benefits from a compact, modular design, a product lifespan of over 30 years, and an energy density up to eight times greater than that of water. www.sunamp.co.uk

| JULY TO OCTOBER 2016 | INVEST EDINBURGH 19

EDINBURGH LOVES FILM 4,000

OVER PRODUCTIONS FILMED IN THE EDINBURGH REGION OVER THE LAST 25 YEARS (350 in 2015 alone) INCLUDING Trainspotting, The Illusionist, The Da Vinci

Code, Cloud Atlas, Tommy's Honour, The BFG, Chariots of Fire, The Railway Man and The Secret Agent

IN

£6.9m £65m

2015 ECONOMIC IMPACT FROM FILM ➽ A RECORD FOR EDINBURGH OVER THE PAST 25

YEARS > ECONOMIC IMPACT FROM FILM

40% of visitors to the UK want to visit locations they have seen on the screen

300 freelance film industry professionals in the Edinburgh city region

The £1.75m Production Growth Fund can support filming in Scotland Filming in the UK qualifies for payable cash rebates worth up to 25% of production costs

More than 2,500 homes and historic and public buildings registered with Film Edinburgh as potential film locations

www.filmedinburgh.org 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.