A £24m office and retail development is underway in the heart of Edinburgh’s financial district, The Exchange.

Construction firm McLaughlin & Harvey won the competitive tender and started work last month on GSS Developments’ 64,000 sq ft scheme at 2 Semple Street.

Completion of the 35,000 sq ft of office space and the remainder retail facing onto Lothian Road and East Fountainbridge is due late January 2018.

GSS is a well established privately owned commercial developer and investment company originating in Aberdeen, with more than £70m in assets, run by the Stevenson family.

Their track record includes the successful 80 acre ABZ business park in the granite city and has encouraged Bank of Scotland to continue their longstanding relationship with the firm and speculatively fund this latest project.

The five office floors will each provide around 7000 sq ft and are expected to accommodate a total of 350 staff. The open plan floor plates will have raised access flooring, LED lighting and access to showers and changing facilities.

GSS developments director Paul Stevenson believes the firm completion date and certainty of delivery will reassure prospective tenants, who will be able to influence core design and internal finish details if they become involved at an early stage.

"For growing companies looking to secure modern energy efficient ‘best in class’ office space in the centre of Edinburgh’s increasingly vibrant Exchange business district, 2 Semple Street provides occupiers with unrivalled quality alongside certainty of delivery. Backed by Bank of Scotland, we have the capability to speculatively develop this exciting new development, and appointment of respected contractors signals our intent that this project will be delivered without delay.

"In initiating an early start date, potential tenants can plan ahead with confidence, removing some of the nervousness that can be involved in relocating offices."

This is one of last gap sites in this financial and professional city centre hub. Nearby developments include Scottish Widows HQ Port Hamilton, the trio of buildings at Exchange Place with tenants such as BlackRock and Wood Mackenzie, and New Uberior House, one of Lloyds Banking Group’s main offices.

Haymarket railway station and tram interchange is a 10-minute walk away. Joint letting agents are CuthbertWhite and CBRE.

In brief ...

SOFTWARE FIRMS EXPAND IN GLASGOW

Global software engineering consultancy Thornton Tomasetti has outgrown its incubator premises at Strathclyde University and leased larger office space at 35-39 St Vincent Place, Glasgow.

Advised by CBRE, the firm has acquired 2100 sq ft for five years on a sub-let from Ofcom to cope with increased staff numbers, with Cushman acting for the regulator.

Another software company, Encompass Corporation UK, advised by Edgar Property Solutions, has taken two suites totalling 4275 sq ft for five years in the same building.

 

CROMWELL CAPTURES CLYDEBANK

One of the largest investment deals of the summer saw Valad Europe, part of Cromwell Property Group, acquire Clyde Retail Park, Clydebank.

The asset was purchased from Motherwell Investment LP at a price reflecting a net initial yield of 7.3 per cent. The 149,046 sq ft retail park had an average unexpired lease term of 7.9 years.

Hot property on the market

THE landmark former headquarters of Lothian and Borders fire service is one of the most interesting properties currently sitting on the Scottish market.

The Grade A sandstone building, at 76-78 Lauriston Place, Edinburgh, was completed in 1900 and covers over 34,000 sq ft across five levels, with some seriously spectacular views across the city.

Scottish Fire and Rescue have put the property up for sale as part of a rationalisation programme for their estate.

It currently houses Edinburgh’s Museum of Fire, which will be relocated to a new site in due course.

Keith Aitken, regional senior director of agents Bilfinger GVA, said despite the post Brexit worries attractive properties will still generate interest.

He said: "We have been encouraged by the number of serious interests received from the development community."