1. The property development process: a Scottish case Peter Fisher, Northumbria University, UK

2. Trends Actors Site Economy Government Property markets Events “What processes, organisations and people significantly influenced how this site evolved?” 7 elements, 51 sub-elements, 284 defined web-links7 elements, 51 sub-elements, 284 defined web-links

3. Site : Location

4. Site : Physical characteristics

5. Site: listed buildings (demolished)

6. Site : listed buildings (retained)

7. Long Term Trends: e.g. Social Living in the city Party lifestyle Graduate Recruitment Property markets Letting & sales success

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

9. Land marketLand market  Severe shortage of large central sites  Planned re-sale of the Surgical Building Letting market : officesLetting market : offices  Shortage of really modern prime stock in city centre  Doubts over peripheral location Letting market : retail + leisureLetting market : retail + leisure  Convenience stores, restaurants, cafes, bars  Demand contingent on office workers and residents Investment market : commercialInvestment market : commercial  Economy: Cycles. ‘Asset price bubble’ 2006/7 Residential marketResidential market  Economy: investment. Strong sales 2006/07 ‘Buy to let bubble’ Property markets

10. Government Government Agency; Lothian University Hospitals NHS TrustGovernment Agency; Lothian University Hospitals NHS Trust  Move to new hospital site 2003  Official aim = highest sale price  However, unofficial motives Local Planning Authority; City of Edinburgh CouncilLocal Planning Authority; City of Edinburgh Council  World Heritage Site  City Centre Local Plan 1997  Development Brief 1998

11. ‘Actors’ Private sector firmsPrivate sector firms Role of Individuals?Role of Individuals?

12. Actor : master planner & architect Event : Land acquisitionEvent : Land acquisition  Need to win the competition  International reputation, developer liked Nimes Trend : Environment.... ‘Cool Britannia‘Trend : Environment.... ‘Cool Britannia‘  ‘Building in context’ of listed buildings  Modernist design ousts contextual Property markets : lettingProperty markets : letting  Forster reputation for design of high specification offices  A first for central Edinburgh = ‘unique selling point’ Government : Planning AuthorityGovernment : Planning Authority  Forster reputation/ influence over ‘heart-of-the-site’ issue

13. Event: Site sale / acquisition Government : AgencyGovernment : Agency  Lothian University Hospitals NHS Trust  Negotiations with New Lauriston Ltd Event : Development CompetitionEvent : Development Competition  Long list of 10, initial bids, Autumn 2000  Short list of 3, final bids, Spring 2001 Actor : Developer (Joint venture)Actor : Developer (Joint venture)  Southside Capital, preferred developer, June 2001  JV = Taylor Woodrow, Bank of Scotland, Kilmartin Event : Site acquisition 2003Event : Site acquisition 2003  £30m unconditional price plus  ‘Overage’ clauses covering sales prices and planning  Development Agreement

14. TRENDS e.g. Technology, politics ACTORS Developer(s), Bank, Other bidders, Consultants SITE e.g. Location, listed buildings ECONOMY e.g. Cycles : Dot Com GOVERNMENT e.g. NHS Trust, Planning Authority PROPERTY MARKETS e.g. Land (hotel), Letting (offices), Investment (residential) EVENTS e.g. Site acquisition, Design, Feasibility Event : Site sale / acquisition

15. Events: design, feasibility, planning 2002 Surgical building Medical ward blocks Red Home ENT Ophthalmology

16. Event : Construction: started July 2005 2006, from the south east

17. Events: design, feasibility, planning, 2005

18. TRENDS e.g. Social: (city living) ACTORS e.g. Forster Partners, Gladedale + overage buy out SITE e.g. Physical Characteristics (listed buildings) ECONOMY e.g. Cycles : (Tourism after 9/11) GOVERNMENT Planning Authority + Historic Scotland PROPERTY MARKETS e.g. Land: (hotel problem) Investment : residential boom EVENTS e.g. Design (‘heart’ issue), Feasibility Events : design, feasibility, planning 2005

19. Events : letting & sale (commercial) Veridian No 1 Quartermile

20. Events : Sale (Residential) Simpson & Fergusson High Meadows

21. and finally... The previous commercial development modelThe previous commercial development model  Good fit, yet adaptations needed for residential uses ‘Actors’ v ‘Government’‘Actors’ v ‘Government’  Each interprets the same Site, Trends, Economy & Property Markets according to their role(s) Organisations and individualsOrganisations and individuals  Both made a real difference in this case Mixed-use ‘place making’Mixed-use ‘place making’  24 / 7 inter-dependence of activities + critical mass + good design + intelligent management = vibrancy = profit Heritage conservationHeritage conservation  Can enhance profitability, yet they demolished five listed buildings One case study...... so what ?One case study...... so what ?  Applying, adapting and refining the model  A literature of detailed case studies