Scotland announces £7.5 billion new investment opportunities

The two agencies showcase some 18 projects from each of Scotland’s seven principal cities in a MIPIM 2016 Pitch Book published for the industry’s annual international event held in Cannes this week.

Introducing the Pitch Book, First Minister Nicola Sturgeon writes: “Cities and their neighbouring regions play a central role in driving economic growth. … I look forward to [Scottish Cities Alliance] securing further large scale investments, all of which will add to the growing international success story of Scotland’s cities.”

Councillor Andrew Burns, Chair of the Alliance, added: “By working together, the Alliance partners can share significant knowledge and expertise, ultimately creating projects of scale that will deliver a stronger future economy for a more prosperous Scotland”.

Breaking records

Inward investment into Scotland hit all-time record levels in each of the past two years. And the most recent EY Attractiveness Survey named Scotland as the most attractive place outside London to invest in the UK.

According to figures compiled by CoStar, the UK CRE data provider, 2015 was the second highest year for CRE investment volumes in the country, with foreign buyers accounting for 34 per cent of purchase volume, up from 20 per cent in 2014 and the 19 per cent five-year average.

Much of this success is down to Scottish Enterprise, Scotland’s principal economic development agency, whose strong commitment to shared common data and new technology has created a unified and compelling picture that’s proving highly appealing to potential investors.

A Scottish Development International evaluation highlights the effectiveness of Scottish Enterprise support in attracting inward investment. According to the report, 25% of inward investment projects would not have happened or would have been less likely without that support, 35% of projects would have been smaller in scale, and 20% would have taken longer to complete.

One step ahead

Multiple factors are driving the upward investment trend, says Allan McQuade, Director of Business Infrastructure at Scottish Enterprise. Among these he lists Scotland’s stable government, forward-thinking planning, clear focus on economic development targets and a world-leading development authority.

Far from being complacent, however, Allan emphasises the need for Scotland to stay ahead in an ever more competitive landscape. London, the Northern Powerhouse and the Irish Republic are examples of nearby rivalry for inward investment, while competitors around the globe are also continually refreshing their offers.

So it’s imperative, says Allan, that Scotland can demonstrate the sort of business infrastructure that investors demand.

The power of shared data

One local authority agency that has had a long involvement with Scottish Enterprise is Invest Glasgow, The two bodies collaborate on physical infrastructure, business and economic development, and inward investment – always with the aim of presenting a single unified picture of Scotland to potential inward investors.

These efforts have paid off handsomely for Scotland’s second city. Since 2011, Glasgow has attracted more than £8 billion in capital investment including housing, retail, health, education, hotels and offices.

Anne Murray, Inward Investment Manager at Invest Glasgow, says: “What potential investors need is a single point of contact to eliminate duplication and confusion, and rapid response to all enquiries. Companies want to move fast, so we need to move fast too.”

But a single agency can’t do everything, Anne notes. “That’s why we work with broader-based groups like Scottish Enterprise. And this is where it’s vital to be accessing shared data and statistics to produce consistent messages.

“The last thing we want is to put out conflicting or confusing information to our enquirers. Also, with local authority budgets under continuing strain, we don’t want to tie up our limited resources on checking facts or duplicating research efforts.

Anne Murray welcomes the trend towards seamlessly shared information over a collaborative network, using the same database and technology. Thirty-one Local Authority and Scottish Government clients use CRE data from CoStar Suite. As a result, the country is well serviced with common data, from the Scottish Enterprise national level down to county councils and urban regeneration companies focused on a relatively small area.

“This can only be a good thing”, she comments. “When most of Scotland’s local authorities and agencies use a common evidence base, it’s a lot easier to develop reliable, consistent and compelling propositions to investors that give Scotland the positive consideration it deserves.”