While industry leaders at Estates Gazette’s Edinburgh Question Time supported the idea that the Scottish capital is pro-development and needs major funding to propel its status as a UK core city, they agreed this needed to be balanced with heritage preservation to keep its charm and attraction to foreign investors.
Heritage, which was dubbed “an Edinburgh obsession” by Architecture and Design Scotland chief executive Jim MacDonald, was the overriding theme of the event. How the city has reacted in the wake of the independence vote and what its best chance is of landing the UK core city ticket, which would earn it a £4.2bn cash injection, were also hotly debated.
Descending on the former banking hall of Royal Bank of Scotland’s headquarters at 42 St Andrew Square, which is being prepared for development by Chris Stewart Group after lying vacant for 10 years, an audience of more than 100 industry professionals heard how Edinburgh should best use its historic assets to make the most of its future.
The new chief executive of city of Edinburgh council, Andrew Kerr, said the council supported new schemes, but added that it would cost £300m to “keep up with development infrastructure to develop as a city”.
He said this was an important matter “that we all need to think about together so the city grows sustainably”.
“The population is going to grow, and the council can’t get that £300m over the next five years, so it needs to come from somewhere,” he added.
MacDonald agreed. He said there needed to be a clear vision for the city’s long-term success, adding: “The ability to deliver it relies on local control.”
“We need a vision of what the city will look like in 50 years’ time, and I think there is a big opportunity coming,” added Kerr.
The panel agreed that Edinburgh’s architecture was important to its vision of the future. The city wants to remain to be seen as a market both local and international investors will choose to invest in.
But striking a balance between new and old could be difficult in a world heritage city – the disputes around plans to turn the Royal High School into a hotel were singled out as just one example.
The value of Edinburgh’s heritage was then put to the audience. Asked of the importance of Edinburgh’s status as a UNESCO world heritage site, 61% thought the city’s economy would suffer without it; 32% said it was marginally important, while 7% thought it unimportant.
Kerr said the council was going to put more energy into balancing heritage and development, adding that he regarded the city’s old buildings as “part of the charm of what makes Edinburgh a world-class city”. But preservation needed to be balanced with change.
“We will not be a major UK city if we don’t keep changing,” he said, adding that this meant looking beyond the buildings to their sustainability and recognising their historic qualities.
He said: “Those qualities are exhibited in cities which are historic and have been around for a long time, that have a character and identity and realise that this is a long game. Local authorities and public bodies have an abundance of heritage stock in their portfolios and there is no public money to be able to fund the opportunities.”
Certainty in the city
The debate moved on to politics, with a question from the audience on how the city had fared following last year’s independence referendum. Despite fears last year that a vote for independence could restrict opportunities, Keith Dobson, head of Savills’ Edinburgh office, said the result had actually encouraged plans.
He said: “A catalyst has been the political certainty that we can work under in Scotland. That certainty has allowed us to go forward with confidence.”
Polly Purvis, chief executive of Scottish ICT trade body ScotlandIS, said independence should not be a prime concern.
“I think is it the European referendum that is much more worrying for businesses,” she said.
Chris Stewart, chief executive, Chris Stewart Group and Scottish Property Federation vice-chairman agreed, but warned that although the market looked positive, it still needed more growth. “The market has responded positively,” he said. “It wants stable real estate assets into which you put your money for a long time. The market is moving well, but it is still a thin market.”
Dobson said he was encouraged by the rise in international investors looking to Scotland, with the biggest assets on the market – the Standard Life Edinburgh HQ being sold by Cushman & Wakefield for £91m, and the Atria with a £100m price tag through JLL – both attracting international interest.
““UK core city status was debated as a potential leverage to such investment. The panel agreed that in this instance Edinburgh and Glasgow could work well together for a combined entry.
“If there was a chance to rebalance it, I would consider using Edinburgh and Glasgow as a regional offer,” said Dobson. “I still feel that Edinburgh needs to project more as a European capital city and that it is a stronger marketing tool to use.”
Kerr added: “Sometimes there are things that Glasgow and Edinburgh could do well together and we need to have a think whether we are a core city or good at co-operating with other cities.”
What would you spend the £4.2bn UK core city cash on?
Polly Purvis, chief executive, ScotlandIS: “Skills is the biggest single challenge, so I would pump it into that.”
Chris Stewart, chief executive, Chris Stewart Group/vice-chairman, Scottish Property Federation: “Free broadband makes a huge amount of sense to encourage new businesses.”
Andrew Kerr, chief executive, City of Edinburgh Council: “This has to be about investing in skills.”
Jim MacDonald, chief executive, Architecture and Design Scotland: “It would have to go on some form of infrastructure, but we also need to think whether the money can be used to lever much greater levels of investment.”
Keith Dobson, head of Edinburgh office, Savills: “I think we have picked up on a number of areas, so the only other thing would be a rugby stadium in East Princes Street Gardens. You see the success of the Hydro in Glasgow, and Edinburgh just doesn’t provide that culture as a modern multi-purpose venue.”
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