Much of Fife’s development is focused on attracting investment across its road bridge link with Edinburgh. But, as Adam Tinworth reports, the bridge also draws commerce out
Despite Hyundai’s decision to mothball its unused plant at Dunfermline, many people in the Fife property market are upbeat. “Fife’s booming,” says a confident Michael O’Gorman of Fife Enterprise. “At least, it’s booming in the Scottish context.”
Fife has always had a diverse economy. While its north-eastern part draws much of its revenue from tourism – especially in St Andrews, the home of golf – the south has always relied on industry.
“It was an economy based on a few employers and heavy industry,” says Colin Innes, head of Shepherd & Wedderburn’s planning and environmental law group.
However, Rosyth’s shipyards and the coal industry have both undergone downturns since the 1980s. Scottish Coal still operates Longannet mine – and is expanding it – but most of the others have closed.
The need for new employers and new industries was obvious. The region’s big success in attracting Hyundai to build a manufacturing plant on the outskirts of Dunfermline quickly went sour. Hyundai, beset by problems in the Far East and the collapse of the semi-conductor market, put the plant on indefinite hold.
“We keep hearing positive noises from them,” claims O’Gorman. However, with no news from Hyundai, the focus has turned to Rosyth, where Rosyth Europarc has had a successful year.
“I was sceptical about it but I’ve been proved wrong,” admits O’Gorman. “It’s a big, dirty site, but it’s doing really well.”
Dunfermline-based agent Michael Court of Graham & Sibbald agrees: “It’s brought badly needed jobs back into the area.”
The regeneration body Rosyth 2000 has offered existing space on the former naval base. Well over 9,290m2 (100,000 sq ft) has been let in eight deals by agent Ryden, with another 929m2 (10,000 sq ft) under offer to a West Lothian-based company at £38 per m2 (£3.50 per sq ft).
Speculative development
“It’s significant because it’s never been easy to tempt people across the Forth,” says Ryden’s Neil McAllister. “This will be the third time we’ve done it.”
Two 1,858m2 (20,000 sq ft) offices and a 1,440m2 (15,500 sq ft) industrial development, the first speculative developments on the site, are approaching completion. “The interest in the office space has been from call centre operators, local businesses and some companies that are struggling to find space in Edinburgh.”
The link to Edinburgh across the Forth Road Bridge is seen as the key to the future of Fife as a whole and Dunfermline in particular. But there are problems, particularly congestion at peak hours.
“The stumbling block is that there’s only a single crossing – the bridge,” says Graham & Sibbald’s Court. Various options have been suggested, including a second crossing or upgrading the nearby Kincardine Bridge, but nothing concrete has been proposed.
The residential market has been boosted by rocketing house prices in Edinburgh (see p118), but this too may be constrained by increasing congestion on the bridge. There is, however, a good rail connection.
The M90 runs off the bridge and to the east of Dunfermline. The land in between the two has been designated the town’s expansion area. It is where Hyundai has built its unoccupied factory, and it is home to Carnegie Campus, Fife Enterprise’s business development.
Queensferry House, Miller Developments’ three-year-old speculative scheme which was supported by Fife Enterprise, has finally let 836m2 (9,000 sq ft) to Optos, an optical technology firm. That leaves 1,083m2 (11,660 sq ft) on the market.
“It’s the only new space available in the area,” says Cameron Stott of Jones Lang LaSalle, joint agent with Ryden. “It’s only 15 minutes from Edinburgh, and you’re paying £11 per sq ft rather than £20 over the bridge.”
The future of Carnegie Campus will be a “mixture of owner occupation and speculative schemes”, according to Fife Enterprise’s O’Gorman. “We’re looking to attract companies that can halve their rent by crossing the bridge.”
Not every scheme in the area is focusing on the bridge, however. Next door to the unoccupied Hyundai plant is Fife Leisure Park. This 21,831m2 (235,000 sq ft) scheme, anchored by a 10-screen Odeon multiplex, overlooks junction 3 of the M90, which runs from Edinburgh to Aberdeen.
Developer Grosvenor Estate Holdings is seeking tenants for a hotel site as well as the remaining leisure and restaurant units.
Dunfermline town centre’s fortunes have been waning, partly because of the bridge. “It continues to lose trade to the Gyle and Edinburgh Fort on the other side of the river,” says Shepherd &Wedderburn’s Innes.
It is far from a disaster, though. “It’s in the best shape it’s been in during the two years since Hyundai pulled out,” says Graham &Sibbald’s Court. There are few vacancies on the prime pitch and not many in the secondary area. “There are a lot of voids in the tertiary areas, though,” he adds.
Court hopes the planned Highgate scheme will give the town centre a boost. “The site’s been empty for 10 years or so and it looks derelict,” he says. “The new scheme will bring some balance to the town’s retail.”
The £25m scheme is being developed by New Dunfermline, a joint venture between the EDI Group and the Walker Group.
“I’m feeling rather chipper about it,” says EDI’s Ian Wall. “We’ve got detailed planning and some major tenants lined up.”
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Regional round up |
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Scheme profiles |
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Scheme |
Size (m2) |
Developer |
Agents |
Tenants |
Status |
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Fife Leisure Park |
13,006 |
Grosvenor Estate Holdings |
Jones Lang LaSalle |
Odeon, McDonald’s, Pizza Hut |
On site |
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Highgate Centre |
21,831 |
New Dunfermline (EDI Group& Walker Group) |
Ryden and Montagu Evans |
TK Maxx |
Detailed planning |
