THE INVESTMENT MAGAZINE FROM SCOTLAND'S CAPITAL
JULY TO OCTOBER 2017
DELIVERING FINTECH'S SHARED VISION
COLLABORATION UNLOCKING EDINBURGH’S POTENTIAL
ALSO INSIDE ISSUE 60 » 10 QUESTIONS FOR PROF SETHU VIJAYAKUMAR, EDINBURGH CENTRE FOR ROBOTICS » 70 YEARS OF FESTIVALS EDINBURGH » ARCHITECTURAL APPEAL
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IN THIS ISSUE 06
17
08
GLOBAL OUTLOOK, INTERNATIONAL APPEAL
03 CAPITAL FOCUS
A new lease of life for prime retail location
N EW ARRIVALS 07
Chinese mobile developer, Skymoons Interactive touches down
10 QUESTIONS FOR... 08
Professor Sethu Vijayakumar, Director of the Edinburgh Centre for Robotics
10 (cover story)
EDINBURGH’S FINTECH POTENTIAL
A shared vision emerges to maximise city’s strengths in finance and technology.
14 ROUND TABLE
What must Edinburgh do to fully capitalise on the potential of FinTech and stay ahead of the increasingly global competition?
M AKING IT HAPPEN 16
A new creative lease of life for historic city tram depot
18 SPECIAL FEATURE
World’s architects drawn to an inspiring city
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The University of Edinburgh’s international outlook and global appeal were graphically underlined recently with two landmark celebrations. On 17 May, the stunning Playfair Library hosted invited guests for a celebration of the 30th Anniversary of the Erasmus+ (European Regional Action Scheme for Mobility of University Students) programme. More than 9 million people around the world have benefitted from Erasmus opportunities. Over that time, the University of Edinburgh has established itself as the UK’s largest beneficiary in the programme, supplying more students than any other UK institution and the number one host for Erasmus+ students in Scotland. Professor Sir Timothy O’Shea, Principal, joined Professor Jane Norman, Vice Principal for People and Culture, along with invited staff and students to celebrate the anniversary. The celebration highlighted the positive impact of the Erasmus+ programme on European citizens, emphasising the cooperation and cohesion between EU countries as a powerful instrument for sharing common European values and contributing to learning and development of competences. The University has supported Erasmus since its inception in 1987. The programme remains crucial to the University of Edinburgh, a fact underlined by its Vision 2025, to offer “…all our students an international learning experience; enabling us to make a truly global impact...”. Shared European identity and culture were further strengthened when more than 200 academics and university leaders attended the Coimbra Group Annual Conference and General Assembly event in Edinburgh from 7 - 9 June. Encouraging collaboration across a European-wide network of 38 universities, Coimbra seeks to promote shared academic and cultural ties across the network. “The Coimbra Group conference gives us the opportunity to emphasise that Edinburgh will always remain strongly and positively European and international in outlook,” said Professor O’Shea.
www.coimbra-group.eu
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PRIME MIXED USE DEVELOPMENT GETS GREEN LIGHT Approval has been granted to transform the former BHS store at 64 Princes Street into a hotel, flagship retail store and rooftop restaurant. Edinburgh has seen a double-digit increase in overseas visitor numbers in recent years and, despite an increase in hotel rooms coming on stream in the last five years, demand still outstrips supply in the city centre. Work to strip out the building could be completed by 2019, delivering a 137-bedroom hotel that will be topped by a 560m2 (6,000ft2) restaurant and terrace that will boast one of the most spectacular views across Edinburgh’s Old Town, Castle and Princes Street Gardens. The development brings the upper floors of the building into full productive use for the first time in decades.
The £50m plan was tabled by LaSalle Investment Management on behalf of the building’s owners, a major pension fund, after BHS went into administration last year. Following public consultation and engagement with conservation groups, the application for the development was lodged last October, and the plans were approved within four months. Steve Spray, Fund Manager at LaSalle said: “This is a major commitment to an important Edinburgh building and can contribute significant new hotel and restaurant space while retaining the flagship retail store on Princes Street. “The rooftop restaurant will have unrivalled views and we think it will become a tourist attraction in its own right.”
“THIS IS A MAJOR COMMITMENT TO AN IMPORTANT EDINBURGH BUILDING AND CAN CONTRIBUTE SIGNIFICANT NEW HOTEL AND RESTAURANT SPACE WHILE RETAINING THE FLAGSHIP RETAIL STORE ON PRINCES STREET."
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PROPERTY WEBSITE ZOOPLA HAS NAMED EDINBURGH AS THE MOST POPULAR CITY IN WHICH TO LIVE IN THE UK, BASED ON HOUSE HUNTER ENQUIRIES TO ESTATE AGENTS FOR THE 12-MONTH PERIOD TO 1 APRIL 2017.
The shopping space on Princes Street will be revamped, while the 1970s Rose Street extension building will be demolished and a new one constructed, which will contain restaurants, the entrance to the rooftop restaurant and entrance to the new hotel at street level. The architects working on the project are Edinburgh-based CDA. As part of the hotel development, a light-well is to be created through the upper floors of the Princes Street building to bring natural light to the inner bedrooms. The two current buildings amount to a total of 11,344m2 (122,000ft2) of floor space – collectively one of the largest retail entities in Edinburgh’s city centre. The developers expect the main retail space to become a new flagship store, offering a store of up to 4,535m2 (50,000ft2). The entire existing 1960s building is Category B listed, and under LaSalle’s proposals there would be little change in the building’s appearance from Princes Street. The developers believe 250 jobs could be created through the mixed-use development.
www.lasalle.com
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©Pentech.
SCOTTISH VCs LAUNCH NEW TECH FUNDS Investor appetite for Scottish technology has been underlined by the oversubscription of the latest fund from Edinburgh-based VC firm Pentech. Having raised £88m – double the size of its previous fund – Pentech now plans to create a portfolio of around 20 companies over the next five years. It has an interest
in AI, machine learning, big data, and infrastructure – such as blockchain – in areas from FinTech, through health and wellness to enterprise. Fund III will invest in early-stage software companies across the UK, at Series A and pre-Series A. Dr. Sandy McKinnon, a partner in Pentech, says there is now “a more active accelerator/ seed community, which is great.”
Pentech has previously led early stage investments in companies such as the fantasy sports giant FanDuel, launched in Edinburgh, and London-based FinTech disruptor, Nutmeg. Meanwhile, Par Equity, which opened an office in San Francisco earlier this year to support investment between the US and Scotland, is now looking to raise a $125m fund that will focus on the health technology sector. The Edinburgh-based VC’s recent US expansion forms part of the company’s plans to become the first Scottish venture capital company to operate in both the UK and USA. “This [fund] will … cement Scotland’s growing reputation for its health technologies and as a great place for globally-minded companies to locate and grow,” said Lena Wilson, Chief Executive of Scottish Enterprise, which has co-invested with Par Equity in some of Scotland’s most exciting and ambitious early stage growth companies. The Par Equity Fund will support companies with proprietary digital health technology and proven commercial products ready for transatlantic expansion, either from UK to the US or from the US to UK.
1 TO WATCH WHO ARE THEY? TVSquared offers an advanced suite of analytical tools designed to track and optimise the performance of TV advertising spend for advertising agencies and some of the world’s largest brands. The business already works with more 400 brands across 50 countries globally, all of whom use its product to establish which TV advertising slots drive the greatest engagement with consumers, enabling TVSquared’s customers to maximise reach to the most relevant target audiences. Headquartered in Edinburgh’s renowned tech incubator, CodeBase, the business has an established international presence with offices in New York, Los Angeles, and London. WHERE HAVE THEY COME FROM? In 2012, while working at Sumerian, a provider of big data analytics for retail and investment banks, two
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entrepreneurial data scientists, Calum Smeaton and Huw Bruce-Gardyne, recognised an opportunity to apply their collective years of experience to transform the $202 billion global TV industry. Up until the launch of TVSquared, advertisers were reliant on inaccurate data based on ratings, which was often received six weeks after adverts were aired. Thanks to TVSquared’s analytical tools, advertisers can now predict, purchase and track the effectiveness of an advertising slot, improving the efficacy of targeted TV advertising by as much as 80%.
TVSquared
WHY ARE THEY WORTH WATCHING? The Scottish start-up recently announced a £5.2m funding round, led by West Coast Capital and matched by the Scottish Investment Bank. This
brings the company’s total funding to £7.7m. The latest investment will enable the business to expand its targetting of media companies and brands globally. With research showing 87% of viewers consume TV with a second screen – usually a mobile device to hand – online brands such as Comparethemarket.com, Amazon and Shop Direct are now the biggest advertisers, spending £639m on UK TV advertising in 2016. For brands with no physical presence, the ability to connect emotionally with consumers at scale has never been more important. TVSquared’s ADvantage tool provides continuous analysis of how TV advertising influences revenue through online, mobile and secondscreen, taking the guess work out of advertising spend and improving return on investment. >F ind out more: www.tvsquared.com
WATER RETAILER START-UP BRIGHTWATER HAS ANNOUNCED A SUCCESSFUL FIRST YEAR OF BUSINESS HAVING SECURED SUPPLY CONTRACTS IN EXCESS OF £1.3M ACROSS MORE THAN 800 SITES.
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COMMERCIAL PROPERTY ATTRACTS GLOBAL INTEREST Investment activity in commercial real estate in Edinburgh, relative to the city’s current economic size, has seen Scotland’s capital ranked fourth in global terms, in the JLL Investment Intensity Index 2017. JLL’s Index looks at data for 150 cities, over a three-year period. Edinburgh is the only UK city to join London in the top 30. As well as being a measure of how Edinburgh’s real estate market is performing, it’s also a very useful barometer of the capital’s overall ‘health’, underlining Edinburgh’s ability to punch above its weight in terms of attracting investment. Edinburgh was third globally, among ‘New World Cities’. These are defined by JLL as small to medium-sized cities with robust infrastructure, a favourable quality of life,
and transparent business practices, where there is a focus on a limited number of hightech, high value global specialisms. Edinburgh is also second only to London in terms of cross-border investment intensity. Looking at specific sectors, Edinburgh topped the table for hotel investment and was second only to Las Vegas for retail investment. It sits in 15th place for office space, where the city’s financial profile was held up as a major contributory factor. The 2017 Index highlights the rise of New World Cities as destinations for real estate capital. “Over the past decade, a core set of 40 ‘New World Cities’ [including Edinburgh] has increased its share of global real estate investment volumes from 12% in 2006 to 23% of global volumes in 2016.”
PRESIDENT OBAMA CHARMS EDINBURGH
Design-led lifestyle aparthotel, Eden Locke, is set to open its second UK venue, with the opening of its new 72-studio offering on George Street in July following the complete restoration of the six-floor listed Georgian property. Edinburgh-based gluten free food producers Genius Foods has entered into partnership with the Scottish Centre for Food Development and Innovation at Queen Margaret University to help develop new products. Around 16,900 households and businesses across Edinburgh will soon benefit from broadband download speeds of up to 330Mbps, as part of the pilot rollout of G.fast services. Edinburgh Airport and Beijing Capital International Airport (BCIA) have signed a ground-breaking partnership agreement that will see a new level of co-operation between the two airports. Upmarket hotel operator, The Edinburgh Collection, is set to add the Haymarket Hub Hotel to its exclusive portfolio, after acquiring the former Tune Hotel in the city’s West End.
Former US President, Barack Obama, visited Edinburgh in May – his first trip to Scotland – following an invitation from The Hunter Foundation to speak at its annual fundraising dinner. Approximately 1,200 diners, including leading figures from Scottish business and public life attended the dinner at the Edinburgh International Conference Centre, raising £670,000 on behalf of 300 Scottish childrens’ charities and the Obama Foundation.
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Edinburgh has been ranked second in a global quality of life survey published by Deutsche Bank. The comparison of 47 global cities benchmarked salaries and rents and weekend breaks, with Scotland’s capital only beaten by Wellington in New Zealand.
A star-studded entertainment line up on the night included singer/songwriter Annie Lennox, stand-up comedian Kevin Bridges and renowned Scottish band Texas. The 44th President of the USA arrived in Edinburgh on the morning of the dinner, and played a round of golf at the Old Course in St Andrews before travelling back to the capital. Promising to return, President Obama stated that Scotland has “a lot to offer the world” in his address to the EICC audience.
Following the launch of its Edinburgh greenhouse facility, accounting giant Deloitte has bolstered its digital offering in Scotland with the purchase of Edinburghbased design consultancy Market Gravity. Celebrity hotspot The Ivy is set to open its first Scottish restaurant in St Andrew Square, Edinburgh. Office Development, Exchange Place 1, has been bought by GLL Real Estate Partners Pan European Property Fund for £47m.
COMMERCIAL PROPERTY DEVELOPER KNIGHT PROPERTY GROUP HAS AWARDED AN £8 MILLION CONTRACT TO ISG CONSTRUCTION LIMITED FOR THE REDEVELOPMENT OF FOUR NORTH, ST ANDREW SQUARE; FORMERLY KNOWN AS EDINBURGH HOUSE.
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MADE in EDINBURGH
Fitbits, Apple Watches and other wearables have become an essential accessory for any keen fitness enthusiast. Wearable technology is even having a significant impact on that most sacrosanct of sports, golf. Designed in Edinburgh and manufactured in Scotland, Shot Scope has set the golfing world alight with its lightweight wristband and club tags. It’s the only performance tracking system that fully complies with US PGA and R&A rules of golf. Professional players on the European Tour, through to keen amateurs, are now using it to analyse performance and improve their game. It was while working as an electronics engineer that keen golfer David Hunter began putting his ideas down on paper. “While studying for a postgrad Diploma in Education at the University of Edinburgh in 2012, I entered a design for a mobile charging device into the LAUNCH.ed Business Ideas competition. It won!” Success inspired David to return to his sketches. In September 2013, the embryonic Shot Scope won £25,000 in funding through Innovate UK, an award which came with an introduction to Loughborough University’s Sports Technology Institute. “Loughborough’s testing facilities enabled me to prove the concept. By March 2014 we had a wearable prototype.” A salaried fellowship with the Royal Society of Edinburgh was instrumental to supporting the product’s development,
further boosted by an £88,000 SMART Award through Scottish Enterprise and a £50,000 Scottish Edge Award in 2015. “Start-up support was essential,” David added. “It gave me the confidence and connections to secure £400k in seed investment through Old College Capital, Equity Gap and the Scottish Investment Bank in July 2015.” Sold out during pre-launch, Shot Scope attracted an additional £1.6m in angel investment, enabling it to scale up to commercial launch in late 2016. “We sold more than 1,200 units across 30 countries within the first five months, despite October not being the best month to launch a new golf product,” said David. With US trade-press effusive in its praise of Shot Scope as the market leader in golf tech, the soon-tolaunch second generation product has the potential to corner the £1bn US market. “Version two will integrate performance tracking with virtual caddy functionality. It will be the only GIS-enabled device in the world that doesn’t require a mobile phone – everything is integrated in the wristband to help players with course management.” Having secured distribution deals with US-wide sporting superstore Dick’s Sporting Goods, Shot Scope is currently in discussions with investors regarding £4m of series B investment to take the business to the next level. >F ind out more: www.shotscope.com
PROFESSIONAL SERVICES FIRM EY IS EXPANDING ITS PRESENCE IN EDINBURGH BY TAKING 32,000 FT2 IN THE PRESTIGIOUS ATRIA DEVELOPMENT. 6 INVEST EDINBURGH | JULY TO OCTOBER 2017 |
EDINBURGH TO JOIN CENTRE OF EXCELLENCE FOR CYBER SECURITY RESEARCH The University of Edinburgh has been approved as an Academic Centre of Excellence (CoE) for Cyber Security Research by the UK Government. It becomes the first Scottish university to join the CoE, making it one of the leading establishments in this growing field of work. Each CoE will work with the National Cyber Security Centre (NCSC) – launched in February 2017 – to develop new techniques and contribute to the UK’s increased knowledge and capability in this field. Underpinned by £1.9bn of investment, it sets out the Government’s key cyber security objectives: • Deter hostile action against the UK; • Defend the UK against cyber threats; • Develop the cyber security industry, create a self-sustaining pipeline of talent into the UK. All the academic centres of excellence have had to meet rigorous criteria that assess the quantity and quality of their researchers, their research output and the impact of their research. Edinburgh will hold its status for five years, from June 2017, before assessments are carried out again. Chris Ensor, Deputy Director for Cyber Security Skills and Growth at the NCSC, said: “At the NCSC, we are absolutely committed to maintaining and improving our already strong reputation as a global leader in cutting edge research, and look forward to collaborating with these establishments to make the UK the safest place to live and work online. Professor David Aspinall, of the University of Edinburgh’s School of Informatics, said: “Cyber security and privacy is now an essential aspect of modern life, which impacts the technology we see and use, as well as the behind-the-scenes technology we rely on that supports the physical and virtual infrastructures. Our recognition as an academic centre of excellence will bring fresh impetus to our research, to help make the digital world safer for everyone.”
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NEW ARRIVALS SKYMOONS INTERACTIVE WHAT DO THEY DO? Chinese mobile games publisher Skymoons Interactive is one of the biggest names in mobile gaming in Asia. Originally established in Chengdu in 2014, Skymoons is the name behind the phenomenally successful Journey of the Flower game, launched to synchronise with the release of the hit Chinese TV series of the same name. The game continues to attract more than 10 million active users and generate huge revenues for the developer.
A CELEBRATION OF INNOVATION AND INVENTIVENESS Three Edinburgh-based companies were celebrating after this year’s Made in Scotland Awards, which champion all aspects of the transformational discoveries and developments being made in Scotland today. Ingenza was named Innovator of the Year for the development of its inABLE platform, which accelerates the commercialisation of new biological entities and processes. The firm was established in 2002 as a spin-out from the University of Edinburgh and now employs 44 people at its facility at Roslin BioCentre. It was also the runner-up on the night for title of Life Sciences Company of the Year. The Young Innovator of the Year, Michael Harkins, graduated with a Master’s degree in Chemistry from Heriot-Watt University in 2016. His entrepreneurial inspiration came from his passion for teaching swimming. He set up Turtle Pack to market a fun and enjoyable swimming aid that helps encourage more children to learn to swim. Having taught more than 500 children since becoming an instructor aged 15, he had noticed how standard swimming aids
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can often develop the wrong swimming technique. Michael then set out to invent an aid that would make swimming lessons fun and engaging, while teaching children one of the most important life skills effectively. Turtle Pack is already gaining a huge amount of traction. Technology entrepreneur Olly Dmitriev was named Inventor of the Year. His company, Vert Rotors, designs and builds ultra-compact gas compressors for aerospace, medical and other applications where vibration and noise are not acceptable. Having secured £1.5m from a consortium of investors last year, Olly is now expanding Vert’s customer base, which already reaches across Europe and the United States. It’s been a busy 2017 for Vert Rotors. The business was also awarded the Venture-Backed Management Team of the Year Award at the British Private Equity and Venture Capital Association (BVCA) Awards on 9 June. > Find out more: www.ingenza.com www.turtlepack.com www.vertrotors.com
BUILDING ON THE SUCCESS OF NINE, PLANS HAVE BEEN SUBMITTED FOR THE NEXT MULTI-OCCUPANCY LABORATORY AND OFFICE BUILDING AT EDINBURGH BIOQUARTER.
WHY THE MOVE? The Chinese games market is vast, with an estimated 483 million mobile players in the country. However, Skymoons are keen to build on their incredible domestic success story by expanding into the global digital entertainment market. Skymoons saw the potential of Edinburgh’s games industry talent, viewing Scotland’s capital as the perfect location for developing new mobile multiplayer online content for a western audience. Introduced to the Scottish market by industry veteran, Michael Boniface formerly of Reloaded Productions, Boniface was then recruited to oversee the creation of the new Edinburgh development studio. WHAT IT MEANS FOR EDINBURGH The studio is now recruiting an initial 21 people, with further growth planned. The plan is to have the full team in place by the end of July 2017, with the first 18 staff already recruited. They’ve also just moved into their new home in CodeBase. Mobile games are on their way to dominate the games industry, claiming 42% of the market in 2017, according to latest industry data from Newzoo. The world’s 2.2 billion regular gamers are expected to drive 7.8% year-on-year growth in the global games market, generating £84.5bn. >F urther information: www.en.skymoons.com
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Prof Sethu Vijayakumar
Director of the Edinburgh Centre for Robotics.
IE> Where do you see the Edinburgh Centre for Robotics’ place in terms of global research capability? SV> Historically, the University of Edinburgh’s School of Informatics is known as the birthplace of artificial intelligence (AI). As the home of AI, we are globally recognised for our expertise in machine learning. Our unique brand of robotics derives from this backdrop and capitalises on state of the art data driven techniques. Robots that we work on focus on learning from data and modifying behaviours based on experience, looking at how we can take multi-sensory data and translate it into robotics systems capable of adapting to its dynamic environment. IE> How do the respective teams at The University of Edinburgh’s School of Informatics and Heriot-Watt University complement one another? SV> Heriot-Watt brings expertise in underwater robotics and human machine
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interaction. This nicely complements our strengths in anthropomorphic platforms such as bimanual systems and humanoids; multi-contact control for whole body manipulation and variable impedance actuation. Robotics is an inherently multidisciplinary field: it involves mechanical engineering, hardware, software design, logic and verification as well as security and networking; it requires expertise in materials and sensing as well as in human robot interaction design, which touches upon fields of sociology. If you want to have a holistic robotics programme, you need to have that critical mass to cover all the bases. In that respect, the partnership with HeriotWatt University has been a vital catalyst.
IE> As one of the eight Great Technologies that will underpin the UK’s future Industrial Strategy, where do you see robotics having the biggest impact in the short term? SV> We are already seeing its potential in healthcare, through augmented exoskeletons to help prevent injuries and increase productivity, through to promoting independent living for the elderly by enabling smart home technologies. 3D printing is revolutionising everything from medicine to construction. Another area ripe for disruption relates to the inspection of ageing infrastructure in our modern societies. The increasing vital and expensive role of asset integrity and certification can be helped by advancement in robotics technologies. In terms of energy, autonomous driving has the potential to reduce pollution and transport costs by reducing congestion and speeding up journeys. And then, there is food security to sustain our population. Robots are being used to manufacture food more efficiently and more safely, for example, by minimising pesticides. Finally, robots are becoming increasing important for securing the supply chain of rare earth materials vital for our telecommunication and scientific needs – by accessing deeper and offshore resources. We might even need to consider mining asteroids and bringing materials back to earth. IE> In developing the next generation of graduates, what role will the Engineering and Physical Sciences Research Council’s (EPSRC) Centre for Doctoral Training in Robotics and Autonomous Systems play? SV> It will be essential. As a UK centre of excellence in robotics, we have secured significant investment from the UK Government and EPSRC – our EPSRC Centre for Doctoral Training in Robotics – aims to train 80-90 postgraduate students in robotics over the next five years, with an investment of over £7m from the research council alone, topped up further from our industrial studentships. IE> The Centre’s acclaimed Robotarium provides researchers around the world with a truly unique resource. What makes it so special? SV> The Robotarium represents a £10m infrastructure investment. It’s a national facility for cutting-edge robotics. It offers
“MANY OF THE DELEGATES HAD THE OPPORTUNITY TO VISIT OUR LABS DURING AN OPEN EVENING AND IT HELPED PUT EDINBURGH CENTRE FOR ROBOTICS TRULY ON THE GLOBAL MAP.” PICKERING’S GIN HAS LAUNCHED A NEW RANGE OF EXPRESSIONS FOR LUXURY CRUISE LINER BUSINESS CUNARD, MARKING THE LARGEST EVER EXPORT ORDER FOR THE EDINBURGH-BASED CRAFT DISTILLER.
<10QUESTIONS several living labs for validating technologies in realistic scenarios. We recently worked with Hitachi on intelligent warehousing for example, with proof of concept work carried out in Edinburgh, before the technology was deployed within Hitachi Transport Group in Tokyo. The new Centre for Data Technology, currently under construction, will house two floors of additional living lab robotics space: for example, the ground floor will be our extreme environment testing facility featuring field robots for rough terrain and nuclear decommissioning mock-ups. On the second floor, we will have hospital and coworking scenarios: robots will negotiate beds and equipment, in a co-working environment with humans. It will provide much needed space for growth and should welcome its first occupants in Summer 2018. IE> In March, Edinburgh welcomed more than 800 delegates to the European Robotics Forum (ERF2017). How does this reflect on the city’s global standing as a centre of excellence in robotics? SV> It was massive. ERF is a unique conference, which brings together representation from academia, industry and government. Some companies were exhibiting their latest robotic solutions; academics were running workshops relating real-world problems to research ideas and there were massive opportunities for new networking connections. Many of the delegates had the opportunity to visit our labs during an open evening and it helped put Edinburgh Centre for Robotics truly on the global map. Of course, the beautiful city, with the castle in the backdrop and the conference dinner held at the grand National Museum of Scotland gallery after wonderful sessions at the EICC helped massively! IE> How does the research you’re delivering on NASA’s Valkyrie robot in conjunction with the Johnson Space Centre tie in with Valkyrie research elsewhere? SV> Valkyrie is the most advanced humanoid robot in the world. Our Valkyrie is the only one in Europe; there are two others in the US, at Massachusetts Institute of Technology (MIT) and NorthEastern. Each centre has a slightly different emphasis: we work on planning, real-time control, upper body manipulation; MIT works a lot on locomotion; Northeastern works mainly on certification and validation. This covers the range of capabilities NASA needs before they can say that Valkyrie is ready for full scale deployment.
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NASA’s Valkyrie. There is a vast gap between developing theoretical algorithms and demonstration on robot simulation platforms and making it work with actual hardware. We are one of the few groups in the world that can now say we have experience of translating advanced algorithms for robotics into robust, repeatable execution on complex robotic hardware in challenging environments. IE> You took delivery of NASA’s Valkyrie R5 in May 2016. How long do you get to work with her? SV> This is a long-term loan under the NASA Space Act Agreement and NASA have very strict rules about loaning out the hardware outside the US. It required negotiations of over a year to sort out the paperwork for Valkyrie to travel! We are very fortunate to be one of the very few groups to get to work with this amazing hardware and co-develop codebase with the NASA Johnson Space Centre, with the real possibility that some of this will get deployed on a future Mars mission. IE> How important is the Centre’s global alumni network in facilitating and supporting new opportunities for collaborative research? SV> I was based in the US before I came to Edinburgh. There they have a much more active alumni network; much more philanthropic – as evidenced by the popularity of naming buildings after former students and benefactors. Here in the UK, those connections are much subtler; it’s a much more British way of conducting business. It seems to be a cultural thing and I feel it’s an area where we can improve.
THE NEW £1.35BN QUEENSFERRY CROSSING OVER THE FIRTH OF FORTH WILL OPEN TO TRAFFIC ON 30 AUGUST.
IE> Against the backdrop of a national skills gaps in STEM subjects, how rewarding have you found your TV role in BBC2’s Robot Wars? SV> It has been a great experience. I have to juggle work commitments, but filming is compressed into a short five-day window. It’s fascinating to see young people with a passion for robotics. Some of the technology is mind blowing. We have just finished shooting the third series, in May. I’m a passionate believer in engaging young people in science, technology, engineering and maths (STEM) subjects, especially robotics. On 8 May, we hosted a live event at the IMAX at Glasgow Science Centre which went out to schools across Scotland. It was a great experience talking to 600 children in the live audience about how we will live in the future. About 18 months ago, I was also involved in the launch of the BBC micro:bit – all these initiatives are instrumental in getting young kids involved in technology. People often confuse technology users with being technology literate: the two are very different.
www.edinburgh-robotics.org
Sethu Vijayakumar is Professor of Robotics in the School of Informatics at the University of Edinburgh and the Director of the Edinburgh Centre for Robotics. He holds the prestigious Senior Research Fellowship of the Royal Academy of Engineering, cofunded by Microsoft Research. He is the author of over 170 academic publications, has won numerous awards and led several UK, EU and international projects in the field of Robotics, attracting more than £24m in research grants over the last eight years. A Fellow of the Royal Society of Edinburgh, Sethu was awarded the 2015 Tam Dalyell Award for excellence in engaging the public with science. He was involved with the UK wide launch of the BBC micro:bit initiative and currently serves as a judge on BBC2’s Robot Wars.
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SHARED AMBITION DRIVES EDINBURGH’S FINTECH VISION With its acknowledged reputation as an international financial hub and emerging tech cluster Edinburgh is ideally positioned to capitalise on the UK’s £20bn FinTech industry and help shape the future of the global industry.
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lobal investment in FinTech has rocketed in the past few years. Innovate Finance, the membership body tasked with championing the UK’s FinTech industry, predicts investment will reach £36bn in 2020 (from £4bn in 2015). Edinburgh, as the second largest financial services centre in the UK and the fourth largest in Europe, claims the lion’s share of £1tn of assets under management across Scotland. With the merger of Standard Life and Aberdeen Asset Management, the city will soon be home to Europe’s second-biggest fund manager, with £660bn under management. “Scale, diversity and compactness are key to the city’s financial offer,” says Graeme Jones, Chief Executive of Scottish Financial Enterprise (SFE). “We have boutique and world-class financial marketing companies, predictive analytics and risk consultancy practices, first class recruitment consultancies, world-class universities turning out computing science graduates and data scientists; we have large retail banks, investment banks, general insurers – we have the whole nine yards. “One plus one equals three in Edinburgh. From my office I can, within a 20-minute walk, meet most of our members. How could I do that in London? I’d spend most of my day travelling.”
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“ONE PLUS ONE EQUALS THREE IN EDINBURGH. FROM MY OFFICE I CAN, WITHIN A 20-MINUTE WALK, MEET MOST OF OUR MEMBERS. HOW COULD I DO THAT IN LONDON? I’D SPEND MOST OF MY DAY TRAVELLING.”
Awarded the title ‘Entrepreneurial City of the Year’ in 2016 at the Great British Entrepreneur Awards, and home to CodeBase, the UK’s largest technology incubator, as well as a vibrant, supportive digital community, Edinburgh was named the best city in which to launch a start-up in 2017 by Expert Market. The city has one of the highest concentrations of people working in tech in the UK, with 25,109 people employed in digital companies. The city is home to tech unicorns such as Skyscanner and FanDuel as well as rising FinTech stars such as Nucleus, which has £12.5bn funds under management and more than 85,000 customers across the UK, as well as AIM-listed accountancy software firm, FreeAgent. Combined with modern infrastructure and an unrivalled quality of life, it’s clear
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“ONE OF THE CHALLENGES FACING FINTECH IS THE ISSUE OF TALENT MANAGEMENT. IT’S A FUSION OF TWO VERY DIFFERENT INDUSTRIES: FINANCIAL SERVICES AND TECHNOLOGY, WHICH I FIND FASCINATING.” Edinburgh has all the assets necessary to capitalise on the explosion of global FinTech. The city was a recent new entry in Deloitte’s Connecting Global FinTech: Interim Hub Review 2017, ranked 36th out of 114 cities around the world. As Edinburgh’s FinTech community coalesces around a shared vision for the sector, the expectation is that Scotland’s capital should be aiming to climb the league table towards the world’s top ten FinTech hubs. In that respect, SFE has been instrumental in unifying the sector through the work of the Scottish FinTech Strategy Group, a collaboration between SFE, Scottish Enterprise and the UK Government’s two Scottish FinTech envoys, Louise Smith, Head of Design in Personal and Business Banking at the Royal Bank of Scotland and David Ferguson, CEO of Nucleus Financial Group. “One of the challenges facing FinTech is the issue of talent management. It’s a fusion of two very different industries: financial services and technology, which I find fascinating,” says David, who has successfully grown Nucleus from three people in 2006 to more than 180 today. “How do we take Edinburgh’s current financial services expertise and reshape it towards a more data literate industry? That’s
www.investinedinburgh.com
a real opportunity for Scotland. Conversely, if we don’t get it right, it’s a threat. “Whether those people change within large organisations or whether they change by joining up with agile start-ups and FinTechs, it doesn’t really matter, but the change needs to happen. A lot of the jobs that exist today risk becoming irrelevant in 10 years’ time.” Since taking up his envoy role and teaming up with SFE, David has helped to shape the SFE FinTech Steering Committee, which today numbers 20 people including Scottish Enterprise, Scottish Development International, the University of Edinburgh, City of Edinburgh Council, FinTech SMEs and perhaps most importantly, the Financial Conduct Authority (FCA). Vitally, the FCA’s engagement in Scottish FinTech paves the way for Edinburgh-based businesses and start-ups to have access to the Authority’s regulatory sandbox – a world-first test bed for innovative financial products, services and new business models. DIFFERENTIATION THROUGH DATA SCIENCE Clearly, Edinburgh has much to offer FinTech, but perhaps the most impactful of its many assets will be the close involvement of the University of Edinburgh, in particular its world-renowned School of Informatics.
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“FinTech is one of ten sectors we are seeking to support and grow through data driven innovation,” says Kevin Collins, Assistant Principal Industry Engagement. “The University of Edinburgh is a research intensive university, in the global top 20; it’s something we pride ourselves on. However, although we produce world-class research, it can be very specific which historically has made it difficult for businesses to access and leverage. We are working hard to change that, but Informatics is already an exception to that rule. Digital technology is having a transformational effect on how consumers interact, purchase goods and services and manage their daily lives.” That potential was underlined recently with the announcement that Hong Kong-based cryptocurrency research and development company, IOHK has recently collaborated on the creation of a $1m Blockchain Technology Laboratory in the city – the first industry-academic partnership for the study of the encrypted digital ledger technology in Scotland. The importance of data science was reinforced by the National Centre for University and Business. Its recently published Growing Value Scotland Taskforce report emphasised the role of universities in delivering a sufficient pool of enterprising and businessliterate graduate talent through closer collaboration with industry and a sharper focus on data science. “It’s one of the reasons we’ve set ourselves a target to train 100,000 data scientists over the next 10 years,” adds Kevin. “That’s part of our commitment to making sure we are developing the right kind of talented individuals for the economy. It’s a bold ambition certainly, and no doubt the appetite across the City Region will outstrip that, so we’re working with the Data Lab, local authorities, colleges and government to try to do more.” SHIFTING REGULATORY FRAMEWORK A strong talent pipeline will be essential to the future of FinTech as the industry prepares for the launch of the Second Payment Services Directive (PSD2) and implementation of Open Banking Standards, which come into effect on 13 January 2018.
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Gavin Littlejohn convenes the FinTech Stakeholder Group of the UK Open Banking Implementation Entity and chairs the Scottish FinTech Practitioners Forum. “Back in 2005, when I started what was then my second FinTech business, Money Dashboard, we started working on account aggregation technology, which would eventually pave the way for Open Banking. “At that time, many of the larger banks were making it challenging for end customers to avail themselves of new FinTech services. We started working with the UK Government and HM Treasury to find a solution to the challenges of regulating open banking during work on PSD2, which at that time was just focused on payments and tidying up the previous payments directive.
“FINTECH SCOTLAND WILL BE DIFFERENTIATED FROM ALL THE OTHER FINTECH HUBS IN THE WORLD. THE COMBINATION OF TECHNOLOGY RESOURCES THAT WE WILL BE ABLE TO PULL TOGETHER WILL BE IRRESISTIBLE.” “There was widespread agreement that open banking was the way forward, but there was also a recognition that SMEs and FinTech start-ups needed to organise into a trade association to give the larger financial institutions and regulators a party to negotiate with.” The Financial Data and Technology Association was born, becoming the campaigning force on behalf of FinTech SMEs. Following the launch of the Competition Markets Authority’s Competition in Banking Remedy, Gavin was then invited to take up the role as the UK’s FinTech Convener for Open Banking. PSD2 requires every bank and credit issuer in the UK to open their transactional banking data to regulated third parties, all with the aim of boosting competition and driving innovation. While UK legislation is to a large extent mirrored in EU-wide legislation, HM Treasury has taken a lead on embedding account aggregation within new regulations. “Larger financial institutions have now moved from a position of active resistance to transition. Open Banking and PSD2 means FinTech is now central to their business strategy, which is terrific for the end customer.
“Edinburgh is well positioned to capitalise on the Open Banking opportunity,” adds Gavin. “There is a combination of early-stage capital, we have strong professional services, an educated workforce with international reach, a very strong local academic capability, particularly around data science, which is a key building block of FinTech, and of course a proud heritage of financial services. We have all the ingredients, we just need to coordinate our efforts to deliver a successful outcome. “Most of the conversations that need to happen are within an easy walk. Through the FinTech Strategy Steering Group set up by SFE we now have representation from across commercial and public life and related industries; we are now starting to create a joined-up story and it’s an exciting time. I’m excited to see the potential of at-scale collaboration combined with Edinburgh’s unique capabilities in data science through the university.” RIGHT PLACE AT THE SAME TIME As underlined by organisations like Level39 in London, or The Factory in Berlin, co-location is vital to breeding a thriving ecosystem of innovation and investment in FinTech. Edinburgh already boasts Seedhaus, a dedicated incubator for FinTech businesses as well as the newly launched collaboration between Royal Bank of Scotland and Entrepreneurial Spark, which has seen the launch of a new FinTech hatchery at RBS’ Edinburgh headquarters. However, members of the SFE FinTech Steering Committee are currently working together to deliver a dedicated city centre hub which, for the first time, will bring Edinburgh’s unique strengths together in one location, helping to unleash the full FinTech potential of Scotland’s capital. “Our vision for the hub is a one-stop shop,” adds Graeme Jones. “You want finance or professional services, no problem. You want angel investment, we can introduce you to the right people. It might even be possible to have a venture capitalist surgery there once a week. The vision extends further, with access to world-class research, Friday school days and regular hackathons.” “FinTech Scotland will be differentiated from all the other FinTech hubs in the world,” adds Gavin. “The combination of technology resources that we will be able to pull together will be irresistible. That will include access to powerful super-
<FEATURE computing, globally recognised advanced capabilities in data science and machine learning, big data, neural networks – all the elements of artificial intelligence including categorisation engines as well as access, through the University of Edinburgh’s Business School, to portfolio and management investment and actuarial capabilities.” Co-location will help to build an eco-system in which students have a chance to engage with business in ever more rewarding ways; start-ups can rub shoulders with peers who have already overcome similar challenges and gain
access to legal advice; while scaleable businesses gain access to an active investment community. Graeme Jones is correct, in Edinburgh, FinTech has the potential to add up to more than the sum of its parts.
www.sfe.org.uk www.nucleusfinancial.com www.ed.ac.uk/informatics www.thedatalab.com www.avaloq.com
CELEBRATING FIVE YEARS IN EDINBURGH Since opening its Edinburgh development centre in 2012, Avaloq, one of the leading providers of integrated banking solutions to the world’s largest financial services companies, has expanded its Scottish hub, both in terms of people and capability. The centre’s workforce has grown from 60 to more than 110; much of that expansion coming in 2016. “If you review the criteria we used to select Edinburgh
as our new home, back in 2011, it’s clear that all have been fully met,” says Philippe Meyer, Managing Director, Avaloq Innovation. “Access to a talented pool of people and a global financial services centre, as well as an attractive cost base. “In many ways, Edinburgh has over delivered. It’s easy to connect with people. That’s not only due to the compactness of the city, but also the eagerness of people
“WE ALSO WISH TO ENGAGE MORE EFFECTIVELY WITH FINTECH INCUBATORS, EXPLORING HOW WE CAN OPEN UP OUR PLATFORM TO GIVE FINTECH ENTREPRENEURS ACCESS TO OUR SOFTWARE.”
www.investinedinburgh.com
to connect. For example, when we came up with the idea of inviting local primary one school pupils (who share our birthday) to an Avaloq fifth birthday celebration, we arranged it with a single phone call to the Council.” As Philippe explains, Avaloq’s Edinburgh operation has evolved from a remote workbench arrangement, in which local teams were managed from Zürich, to today, where teams now have full ownership of modules such as payments, portfolio management, and European localisation. As one of three development centres in the world, (with Zürich and Manila), Edinburgh plays an increasingly important role in Avaloq’s operations. As well as hosting web development teams delivering sophisticated mobile banking solutions, Scotland is also home to Avaloq’s team of technical writers. With two technical trainers based in Scotland, the centre also plays a crucial role in supporting the training and development of employees all over the world. With further growth planned in 2018, Philippe sees Edinburgh emerging as Avaloq’s acknowledged centre of excellence in block chain and data science; work that will be supported by a new collaboration with The Data Lab. “We also wish to engage more effectively with FinTech incubators in the city, exploring how we can open up our platform to give FinTech entrepreneurs access to our software.”
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ROUND TABLE: Lawrence Wintermeyer, CEO, Innovate Finance “To maintain its momentum, Edinburgh must continue to capitalise on its strengths. The city’s strategic advantages include a globally established financial services sector that is open to collaboration with new FinTech ideas and innovations. This openness has helped to create a strong and dynamic FinTech community that is very appealing to entrepreneurs and businesses. “Edinburgh also has a rich pool of talent that comes from top local universities. According to the latest Tech Nation 2016 report, 1,200 skilled computing and software students graduate from Edinburgh’s universities every year, many of whom stay in the city to work for banks, tech firms and start-ups. Excellent infrastructure, including fast broadband and accelerator spaces, combined with a vibrant culture and competitively priced retail space make Edinburgh an ideal capital to establish a FinTech business. “With growing competition from other hubs around the world, Edinburgh must promote these strengths to lure investment and talent into the capital. Maintaining close ties with influential global organisations such as Innovate Finance, as well as other hubs, can enable the city to keep up with the latest developments and share ideas and best practices that can help to accelerate the sector. “Through the signing of an MOU between Innovate Finance and the City of Edinburgh Council, as well as our position on Scottish Financial Enterprise’s FinTech Steering Committee, which is exploring the development of the country’s first major FinTech Hub, we are committed to the growth of FinTech in Scotland, and helping to ensure Edinburgh continues to be recognised as a leading hub for FinTech.”
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Kevin Collins, Assistant Principal Industry Engagement, University of Edinburgh “Innovations in FinTech and Open Banking are shifting the way in which value is both represented and exchanged as consumers pay for services, and in models of trust and authority, to create new economic models. For users of financial services, from large businesses to consumers, this revolution offers significant new opportunities and threats. “Challenges in cybersecurity, resilience of financial systems, changes to governance, regulation and auditing as well as shifts in value, trust and financialisation of data are already emerging. At the University, we view FinTech as one sector of the wider regional economy that can reap the benefits of data-driven innovation, alongside others such as Tourism, Festivals, Public Services, Health and Social Care. “Our ambition is for Edinburgh to become the data capital of Europe, and a strong FinTech sector is key to achieving that goal. We need to leverage our existing strengths and improve how we work together across the City Region to create the quantity and quality of talent necessary to scale-up in this new economy – supported by access to world class datasets, analytical systems and data engineering expertise. The University is already working closely with the FinTech community and Government to try to create the right conditions for success – including an ambition to train 100,000 data scientists over the next decade.”
“OUR AMBITION IS FOR EDINBURGH TO BECOME THE DATA CAPITAL OF EUROPE, AND A STRONG FINTECH SECTOR IS KEY TO ACHIEVING THAT GOAL.”
David Ferguson, Founder and CEO, Nucleus Financial Group “My sense is that Edinburgh should keep doing what it does in terms of quality of life and infrastructure, but perhaps do more to inspire a collaboration between our finance industry (incumbents and startups) and our education providers that will drive us to be world leaders. “We have all the ingredients (some in abundance) but there’s a lot of work to be done to generate alignment and ensure everyone is headed in the same direction. Ultimately this is a talent challenge, whether encouraging young people to get into FinTech or supporting the transition of more experienced people from dated business models into more agile and relevant practices of the future.” Gavin Littlejohn, Convenor, UK Open Banking Implementation Entity “Edinburgh must continue to build its positioning as a great place to live, whether that be for work or study, whilst collaborating with broader Scottish initiatives to invest proper funding in scale-up FinTech firms, home grown talent and data science. “Above all, as we transition from the most traditional financial industries of retail banking, life insurance, fund management and general insurance, we need to learn to encourage a culture of more entrepreneurial risk taking and also retraining knowledgeable staff into technology roles as some financial services job types disappear.”
PROPERTY CONSULTANT CBRE HAS NAMED EDINBURGH AS THE UK’S THIRD BEST REGION FOR CREATIVE TALENT OUTSIDE OF LONDON, BASED ON CONCENTRATIONS OF CREATIVE BUSINESSES, CREATIVE PROFESSIONALS, AND MILLENNIAL POPULATIONS.
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“What must Edinburgh do to fully capitalise on its existing sector strengths to maximise the potential of FinTech and stay ahead of the increasingly global competition?”
Graeme Jones, Chief Executive Officer, Scottish Financial Enterprise “It is no longer optional for financial centres to consider whether to become FinTech centres, we must embrace FinTech to remain relevant global financial centres. “The competition is stiff, and the pace of change is materially quickening but Edinburgh is well placed to be a player on the world stage. One of its most important strengths comes from being a relatively small city with a well-connected, concentration of financial services. “Making the most of these connections and furthering them to link up academia, government and regulators, has been central to SFE’s role and behind the creation of our FinTech Strategic Initiative. Our aim is to create a stronger, connected community and accelerate the growth of FinTech in Edinburgh, and throughout Scotland, while inspiring the next generation of leaders and influencers to consider careers in FinTech.
“WE MUST EMBRACE FINTECH TO REMAIN RELEVANT GLOBAL FINANCIAL CENTRES.” “The importance of creating a wellconnected FinTech community, and the benefits of co-location for both small start-ups and large established companies with FinTech operations, cannot be overstated. Edinburgh has a real chance to succeed here, as it already has the essential mix of a vibrant start-up community, coupled with the experience of large established financial institutions who have diversified into FinTech. Through the FinTech Strategic Initiative, we can maximise this potential by helping connect everyone together to create a dynamic and supportive network.”
www.investinedinburgh.com
Craig Anderson, Partner, Pentech Ventures LLP “Edinburgh has many of the critical components required. Specifically, Edinburgh is blessed with world-leading financial services institutions, a stable and welleducated workforce with considerable knowledge and experience of data science, and a strong entrepreneurial spirit in the business community. We should therefore feel confident about our ability to capitalise on the opportunity in front of us. “There are two areas where I believe we need to do more. Firstly, we need to make sure the best start-ups in this sector have access to sufficient funding at the right stage of their development. Pentech has recently raised a new £90m fund to invest in early stage software businesses, and we will do what we can to help FinTech start-ups in Edinburgh and Scotland. But Pentech alone will not be enough. “As a business community, we need to do more to encourage other investors, and specifically those in London, to spend more time in Edinburgh getting to know the best FinTech start-ups. “Secondly, we need to build a more coherent and engaging eco-system in Edinburgh to bring together corporates, universities, investors, start-ups and entrepreneurs to collaborate and share ideas. Critically, I do think the investor community needs to take a more active role in helping to build that eco-system in Edinburgh. I’d also like to see more FinTech hubs established, and more opportunities for people involved in the sector to informally network and socialise and share ideas. If we can build an effective eco-system and provide our best start-ups with access to sufficient funding, I believe Edinburgh can be a truly leading player.”
THE UNIVERSITY OF EDINBURGH WILL BECOME THE FIRST MAJOR EUROPEAN UNIVERSITY TO OFFER A BLOCKCHAIN COURSE LATER THIS YEAR.
Elaine Ballantyne, Manager, Investment and International Relations, City of Edinburgh Council “The Council has facilitated several roundtables in the city over recent years with the Lord Mayor of the City of London, Innovate Finance, SFE and the financial and tech community to nurture the opportunities that FinTech will bring to the city and highlight its potential impact on Edinburgh’s position within the UK and global markets.
“COLLABORATION ... IS GAINING STRENGTH, AND GIVEN THE RANGE OF GLOBAL CONNECTIONS ALREADY IN PLACE, THERE IS SIGNIFICANT OPPORTUNITY TO HARNESS NEW INTERNATIONAL INFLUENCE AND MARKETS.” “The Edinburgh FinTech Summit, in November 2016, provided an opportunity for the companies attending to compete for a pitching place at the FinTech Finals in Hong Kong and in June this year the city hosted the MobeyForum, an international grouping of banks, financial services and tech companies who meet quarterly in Europe and North America. “Collaboration across the city’s financial and tech sectors is gaining strength, and given the range of global connections already in place, there is significant opportunity to harness new international influence and markets. The Council will continue to play its part in helping to maximise the city’s capacity to test and roll out new technology and applications, through its work on talent, collaboration space and international messaging.”
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REGENERATION DELIVERS NEW CREATIVE LEASE OF LIFE With demand for creative space increasing across the city, the planned regeneration of a former 1930s building is set to deliver much needed flexible space, bringing the site back into use. Following £750,000 funding through the Scottish Government’s Regeneration Capital Grant Fund, plans are in place to develop the site at 165a Leith Walk to create a ‘partnership centre’ serving Leith, as well as a creative hub for the local community. The building will include studios for artists and creative entrepreneurs, a social enterprise café providing employment opportunities, retail units and an educational facility. The development will also make use of several refurbished shipping containers, designed to offer cost effective creative spaces. Former wooden market stalls may also be installed to create a new street market for residents and tourists. In addition to securing the long-term future of the C-listed building itself, the project is expected to deliver training opportunities for young people and armed forces veterans. The project is a collaboration between site owners The City of Edinburgh Council, Hub South East Scotland, which will oversee the refurbishment of the office building as well as aspects of the construction, and current
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tenants and local arts trust Out of the Blue. Out of the Blue will work with the Council on the detailed scope of the project and manage the creative workspaces and street market. The development forms part of the Council’s plans to support the creation of new creative and business space in the city. Work has already begun on the project and is expected to be completed by Spring 2018.
“THE BUILDING WILL INCLUDE STUDIOS FOR ARTISTS AND CREATIVE ENTREPRENEURS, A SOCIAL ENTERPRISE CAFÉ PROVIDING EMPLOYMENT OPPORTUNITIES, RETAIL UNITS AND AN EDUCATIONAL FACILITY.”
AUSTRALIAN FINANCIAL SERVICES COMPANY COMPUTERSHARE IS TO CREATE 300 JOBS AT A NEW TECHNOLOGY CENTRE ON NORTH ST ANDREW STREET, EDINBURGH.
www.outoftheblue.org.uk
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CELEBRATING 70 YEARS OF THE HUMAN SPIRIT BY JAMES MCVEIGH, FESTIVALS EDINBURGH
©Jane-Anne Gilchrist and Edinburgh Festival Fringe Society.
Did you know that Edinburgh hosts a series of festivals every year that are the same size as a FIFA World Cup, both being second only to the Olympic Games? It’s no wonder Edinburgh’s festivals are coveted by other international destinations. What city wouldn’t want to boast of their major festivals hosting over 25,000 international participants, more than 1,000 accredited media and audiences of c4.5 million, while generating £313m for the national economy? However, as Nick Barley, Edinburgh International Book Festival Director, says, “I think it’s important to look beyond the statistics and acknowledge the overall impact of the Festivals. Festivals are not all about the numbers, but about the events, the conversations, and to employ an overused word, the legacy.” 2017 marks the Festivals’ 70th anniversary, having been founded in 1947 as a much-needed platform for ‘the flowering of the human spirit’ after the devastation of WW2. This aim to bring peoples and nations together has been central to the Festivals ever since. In 2017, participants, media and audiences from every corner of the globe will be brought together in endlessly creative ways. Through this annual re-invention of the city, the Festivals have become essential to defining Edinburgh as not only an exciting, cultural magnet for visitors but also a dynamic, creative home for residents and a rich stimulating environment for companies and their employees. They celebrate the extraordinary, offering a
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“THE EDINBURGH FESTIVALS HAVE UNDENIABLY GIVEN THE NATION AND OUR CAPITAL CITY A PRICELESS BRAND WHICH HAS RESONANCE ACROSS THE GLOBE.” whole world of creative experiences, inspirational moments and entertaining recreation to people of all ages, generating the cultural energy that sustains the city and nourishes its people. This ‘quality of life’ factor also positively influences inward investment and talent attraction. This point is not lost on many firms established in the city such as Baillie Gifford: “As one of the leading independent asset management firms in our industry, we need to recruit the best people and the festivals’ vibrant scene is a strong magnet for people to come to live and work in the city.” Edinburgh Festivals represent Scotland at its most open and welcoming. They are distinctively Scottish and yet profoundly international. As renowned historian Sir Tom Devine states: “The Edinburgh Festivals have undeniably given the nation and our capital city a priceless brand which has resonance across the globe and especially makes an impact on some of the most influential opinion formers PROPERTY INVESTMENT AND DEVELOPMENT FIRM WIREFOX RECENTLY EXTENDED ITS SCOTTISH PORTFOLIO WITH THE ACQUISITION OF THE 90,000FT2 GRADE A OFFICE, SILVAN HOUSE.
©Dave Stewart.
in overseas countries.” So, in this their 70th anniversary year, the Festivals re-affirm their world-leading status and more than ever, echo the maxim of another great Edinburgh innovator, Patrick Geddes: Think Global, Act Local. A YEAR OF HIGHLIGHTS Edinburgh Jazz and Blues Festival
14-23 July
Edinburgh Art Festival
27 July-27 August
Edinburgh International Festival
04-28 August
Edinburgh Festival Fringe
04-28 August
The Royal Edinburgh Military Tattoo Edinburgh International Book Festival
04-26 August 12-28 August
www.edinburghfestivalcity.com
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wHY.
Edinburgh’s renowned international appeal is founded on two central tenets: its reputation as the world’s leading festival city and the majesty of its urban landscape, providing an unforgettable juxtaposition between crowded medieval and structured Georgian town planning.
WORLD’S ARCHITECTS DRAWN Edinburgh’s architectural pedigree is beyond question. Home to the UNESCO World Heritage Site that connects its historic Old Town heart with the neoclassical grandeur of New Town, the city has inspired urban planners for centuries. An abundance of renowned names have helped to shape the skyline we see today, from Sir Patrick Geddes and his influence on revitalising the Old Town to the visionaries behind the New Town itself: John and Robert Adam (1728-92), Sir William Chambers (172396), and William Playfair (1790-1857). The city’s stone-built heritage has been shaped by the bedrock foundations upon which Scotland’s capital has grown over the centuries, hemmed in and moulded around its volcanic heart that supports Edinburgh Castle. Perhaps it was this inorganic landscape and organic expansion that inspired Robert Louis Stevenson to describe the city in his Picturesque Notes, as ‘a dream in masonry and living rock.’ Whatever the inspiration, Edinburgh continues to serve as muse for architects in the 21st century, as evidenced by the competition to replace the Ross Bandstand with a new landmark pavilion in the heart of Edinburgh’s West Princes Street Gardens. Entries were received from 125 teams spanning 22 countries including Australia,
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Japan, India and the United States. So global was the competition’s appeal that less than half (42%) of submissions originated from UK-based practices. Malcolm Reading Consultants in collaboration with the Ross Development Trust and City of Edinburgh Council were tasked with selecting seven shortlisted entries for the £25m project, which includes a new landmark venue to replace the bandstand, a visitor centre and updates to West Princes Street Gardens. The seven shortlisted teams, led by the following architects, took part in a public showcase on 21 June: • Adjaye Associates (UK) • BIG Bjarke Ingels Group (Denmark) • Flanagan Lawrence (UK) • Page \ Park Architects (UK) • Reiulf Ramstad Arkitekter (Norway) • wHY (USA) • William Matthews Associates (UK) and Sou Fujimoto Architects (Japan) “The quality of the 125 teams on the long list sent a strong signal that the international design community regards this as an inspirational project for Edinburgh that has huge potential to reinvigorate this prestigious site,” said local businessman and founder of Apex Hotels, Norman Springford, who is
funding the project and serves as Chairman of the Ross Development Trust. Following public consultation and feedback, the winning entry is expected to be announced in August 2017.
“THE QUALITY OF THE 125 TEAMS ON THE LONG LIST SENT A STRONG SIGNAL THAT THE INTERNATIONAL DESIGN COMMUNITY REGARDS THIS AS AN INSPIRATIONAL PROJECT FOR EDINBURGH.” A WORLD-CLASS CONCERT VENUE In harmony with the creation of a new open air pavilion in the shadow of Edinburgh Castle, just a short distance away, activity surrounding the creation of Edinburgh’s first new performance building in 100 years is also building to a crescendo. The 1,000-seat auditorium, located immediately behind the historic Dundas House at 36 St Andrew Square, has been earmarked as the new home of the renowned Scottish Chamber Orchestra. It will create a concert hall capable of rivalling the best in Europe for acoustics and audience
QIKSERVE, THE EDINBURGH TECHNOLOGY FIRM BEHIND THE ‘WAITER IN YOUR POCKET’ APP, HAS SECURED £2.7M OF GROWTH FUNDING THROUGH A DEAL LED BY MAVEN CAPITAL PARTNERS.
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Adjaye Associates.
Bjarke Ingels Group (BIG).
Flanagan Lawrence.
Page \ Park Architects.
Reiulf Ramstad Arkitekter / Forbes Massie Studio.
William Matthews Associates and Sou Fujimoto Architects.
TO AN INSPIRING STORY experience. The award-winning team at David Chipperfield Architects, responsible for the acclaimed Neues Museum restoration in Berlin and currently transforming the Royal Academy in London, was selected as the winning entry from six short-listed architectural and design proposals. Attracting up to 400,000 visitors a year, the venue will help to maintain Edinburgh’s position as an international Festival City and leading centre for music and the performing arts. Nagata Associates, a world-leading consultancy on acoustics, is already advising IMPACT Scotland and will work closely with the architect and design team. “Securing this new performance venue will be a major benefit to Edinburgh and Scotland. By embracing all musical genres, the new auditorium will reach out to the local community and beyond and build new audiences,” said Sir Ewan Brown, Chair of IMPACT Scotland, the charitable trust set up to promote the development of the new venue. “The inclusion of educational facilities open to young artists; a recording studio and digital technology make this a truly transformational proposition.” OPENING UP THE ARTS Plans have also been announced by the National Galleries Scotland (NGS) to create
www.investinedinburgh.com
a brand new £75m low energy National Collections Facility on Granton waterfront, Edinburgh. The 30,000m2 (323,000ft2) facility will create a publicly accessible repository to house the museum’s artworks. It is scheduled to complete in 2021. NGS is currently seeking an architect to draw up plans for the game-changing hub, which will not only deliver high-quality care and the effective management of the collections, but also transform public access, helping to deliver an international and national presence for research and education. EDINBURGH’S GLOBAL APPEAL In the Year of History, Heritage and Archaeology, it’s fitting the city welcomes academics and experts on the climatic design of buildings from more than 50 countries for this year’s Passive Low Energy Architecture (PLEA) conference in July 2017. “How fitting that where 200 years ago the city of Singapore was largely built by engineers and architects from Scotland who had learnt how to adapt their buildings for many different cultures and climates before the age of air-conditioning, we now have Singaporean designers returning to help us understand how important the use of natural ventilation is in our own Scottish buildings in a warming world,” says Professor Sue Roaf,
from Heriot-Watt University. “This is the type of Enlightenment that Edinburgh was always famous for and is still promoting.” This year PLEA’s theme of ‘Design to Thrive – Foundations for a Better Future’ recognises the challenges facing so many cities in balancing development, sustainability and technological trends with the importance of the built heritage in surviving well in a rapidly changing word. “Scotland is famous for the moral, intellectual, academic and professional stances its citizens have espoused and promoted over the centuries, but at this conference citizen-centred thinking and its impacts on the landscape, skyscapes and buildings will be in focus,” adds Prof Roaf. “Resilience and Sustainability are often discussed in terms of politics and policy alone and where better to learn that they are about so much more than words than in Edinburgh?”
www.competitions.malcolmreading. co.uk/rosspavilion/site www.sco.org.uk www.nationalgalleries.org www.plea2017.net
| JULY TO OCTOBER 2017 | INVEST EDINBURGH 19
SUPPLY & DEMAND
IN EDINBURGH’S OFFICE MARKET A COMBINATION OF DOMESTIC COMPANY GROWTH, LEASE EVENTS AND ‘NORTH-SHORING’ (RELOCATIONS OUT OF LONDON TO MORE AFFORDABLE LOCATIONS), IS HELPING TO FUEL UNPRECEDENTED OFFICE DEMAND IN EDINBURGH. THIS IS RESULTING IN STRONG YIELDS FROM HIGH VALUE RENTS. FOR OPPORTUNITIES TO INVEST IN EDINBURGH’S OFFICE SUPPLY PLEASE CONTACT DAVID COOPER OR ELAINE BALLANTYNE, ECONOMIC DEVELOPMENT. DAVID.COOPER@EDINBURGH.GOV.UK, TEL: 0131 529 6233; ELAINE.BALLANTYNE@EDINBURGH.GOV.UK, TEL: 0131 469 3854. Available office space in Edinburgh (m2) (Source: Ryden).
2011 2012 2013 2014 2015 2016
265,05 6 255,354 206,122 195,015 194,846
6 163,47
Prime city centre office rents (£/m2/annum) and yields (%) in regional cities – December 2016 (Source: Cushman and Wakefield).
£318 GLASGOW (5.5%)
£291
£355 EDINBURGH (5.5%)
£237 NEWCASTLE (5.75%)
£350
LEEDS (5.25%)
£269 CARDIFF (5.75%)
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.
£344 £307 BRISTOL (5.25%)
BIRMINGHAM (5.00%)
MANCHESTER (5.00%)