The Courier & Advertiser (Angus and Dundee)
Bridging the growth gap
More investment needed
There may be no shortage of uncertainty and challenges facing Fife’s commercial property sector post Brexit.
Yet the completion next year of the Queensferry Crossing, together with a renewed commitment from government to the Edinburgh and South-East Scotland City Region Deal, provide ample grounds for optimism.
Fife has suffered the effects of the recession, and weak occupier demand – particularly in the office and retail sectors – has stunted rental and capital growth for many assets.
In order to reverse the downward trend in investment transactions, Fife’s commercial property market will require a significant rise in inward investment, which is why the importance of the Queensferry Crossing, due to open in May, cannot be overstated.
It should help drive inward investment into the Kingdom by realising significant accessibility improvements for Fife-based businesses.
The City Region Deal – a mechanism for accelerating growth by pulling in significant government investment – comprises six local authorities, including Fife Council, working collectively on a bid to the Scottish and Westminster governments.
By investing this funding in infrastructure, skills and innovation, the region’s economic performance will be improved significantly, which should not only generate funds to pay back the initial investment, but also draw in significant additional private-sector funds.
The ambition is to secure £1 billion of funding, and it is estimated an additional £3.2bn worth of private-sector investment could be leveraged.
Priority areas for investment include innovation hubs, such as St Andrews University’s Innovation Centre at Guardbridge, and Strategic Growth Zones, such as the strategic development areas in Rosyth, Dunfermline and mid-Fife.
Taken together, such major investments in Fife’s infrastructure will have a profound impact on its commercial property sector, itself a vital component in helping to counteract the various uncertainties that arose in the aftermath of the European referendum.