If there is one thing Miller Mathieson, managing director of CBRE in Scotland and Northern Ireland, is not looking forward to in his new role as the SPF’s chairman, it is the amount of back-and-forth on the Scottish planning system that he will inevitably be drawn into.
“I have no doubt whatsoever that we will get bogged down with debates around the planning system, the planning process and the new planning bill being proposed in Scotland,” the investment expert says, wryly. “I would much rather avoid that, but it is a necessary evil we have to fully engage with.”
Further discussions around reforms for business rates will also take up much of Mathieson’s attention.
The silver lining, however, is that there is an “open agenda” shared with the government officials in question, so Mathieson feels the SPF can help shape and improve matters.
“The reality is there are geopolitical issues that can sideline [other issues] – we are trying to focus on the things we can control,” he adds.
Building relationships
The first of Mathieson’s core objectives as chairman is to build on the SPF’s working relationship with policymakers across all political parties.
“The most important thing is not only that they approach us for advice, but they are listening to what we say – a relatively unusual phenomenon in the political world,” he quips.
“Whether it is the Scottish or local government, we have had a very high engagement with them over the past couple of years that we want to continue.”
Attracting investment
Mathieson is also keen to promote Scotland as an attractive destination, in real estate terms, for jobs, places and investment. For the latter in particular, he aims to apply his understanding of investment capital and the types of product that can attract it, learned through his experiences at CBRE.
A lot of people have been down on Aberdeen, but I think there are reasons to be positive
“We want to make sure we are working towards a competitive environment, whether that is around taxes, planning or opportunities,” he adds.
This target also includes championing Aberdeen, which he says now has some degree of stability despite the challenges it faced after the oil crash, as well as Dundee, as a city that is often overlooked.
Championing Aberdeen
Of Aberdeen – Mathieson’s home city – he says: “We have relative stability in the oil price between $70 and $80, which is a very profitable level for most of the operators now. So, we are seeing some confidence return to the markets.
“There is still a lot of wealth in and around the city. It will take a long time for the office market to properly stabilise because of the huge oversupply. However, we are seeing lettings return to good quality spaces in the city centre.”
He added that both public and private sectors are making a co-ordinated effort in terms of promoting projects in Aberdeen and the surrounding area, which “is not often the case” in a lot of Scottish cities.
Developments in the works include a new ring road and projects around the harbour.
“A lot of people have been down on Aberdeen, but I think there are reasons to be positive,” says Mathieson. “There are reasons to be cheerful.”
Encouraging development
The other big challenge for the Scottish real estate industry is how to foster more development activity. Mathieson says that while there are “very good” development projects in Edinburgh and Glasgow, there is still a “lack of volume” in both commercial and residential scheme.
“Edinburgh and Glasgow are both cities where their economies remain very strong. Both have strong universities, which are influencing the direction of travel in the respective cities,” he says.
“I am fairly confident if they are sensible and don’t get complacent, and they use the City Deal [funding] available wisely, they can future-proof themselves to some extent.”
Diversity and inclusion
Mathieson also outlined the importance of persuading the real estate industry in Scotland to engage and embrace the diversity and inclusion agenda.
“As an industry across the UK, we are clearly lagging behind others,” he says. “We push [this] very hard within CBRE, but it is important to push that message out beyond.”
In just 12 months he will be handing over the reins to Robin Blacklock, managing director of Dowbrae Property Consultancy, who will play understudy for a year in the role of SPF vice chairman.
In the meantime, it doesn’t sound like Mathieson will be short of things to do in his tenure as chairman.
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