Eurocentral success story continues apace

THE American-owned Calcarb, one of the world's leading makers and suppliers of low density thermal insulation materials, is to establish a new manufacturing unit at Eurocentral business park in Lanarkshire.

It has bought the 5.35 acre site from Scottish Enterprise Lanarkshire and will build on it a 70,000sq ft manufacturing and office facility, with construction due to be completed later this year.

Hugh McLeod, Calcarb managing director, said: "Our growing business has called for a significant reinvestment in a larger site which can offer us the profile and transport links that we require, which is why Eurocentral is an ideal location."

This is the latest chapter in the Eurocentral success story and there is more on the way - a total of 90,000sq ft is "with the legals" at present.

The development co-ordinator, Tritax Assets, says the scale of Eurocentral makes it the largest speculative business space project ever undertaken in Scotland.

Tritax was set up 12 years ago to invest in enterprise zones, where there are tax advantages, and Eurocentral is such a zone.

Tritax brings in investors and pension funds and at Eurocentral now has 1,500 investors in the various properties. There is a total value of 332 million (helped by a Bank of Scotland loan of 196m), with 732,000sq ft of office space and 244,000sq ft of distribution sheds planned.

The massive development is on the former Chunghwa site - the Chunghwa building has been demolished and the site will have ten new office buildings, four warehousing/manufacturing units and a range of ancillary developments including restaurants, crche and gym facilities.

Chunghwa invested 185m in the site in a venture that was doomed; Tritax will be spending more than 400m.

Tritax director Ian Ross says the group looked at other options before the demolition squad moved in.

He adds: "The building was in the wrong place on the site. We spent a lot of time looking at ways of getting value out of it - selling it bit by bit if need be - but it did not really make sense."

Russell accepts that the ten new office buildings on the site will be putting a large amount of office space on to the market - a move that has not been short of its critics. He says this might mean some of the buildings having to lie empty for a while.

He adds: "What we have here is an opportunity to develop a site in an environment that will be very attractive to tenants and, as it is an enterprise zone, we will be able to offer substantial incentives to persuade tenants to come here. The offices will have been built at today's costs at a time when construction costs are rising at more than the rate of inflation."

When the Chunghwa site development is completed it will not carry the Eurocentral name - Eurocentral will still be the name for the rest of the business park but not for what will rise from the Chunghwa ashes.

Ross said Tritax had appointed branding consultants to come up with a suitable name.

He explains: "We are waiting for the ideas and names to be put to us but we have nothing to announce yet. The idea is to create an image, a brand, an aspirational thing which will make people want to come here because of what it is and where it is.

"We want a name which will be readily identified."

WHITEBURN SELLS TUN FOR 15M

THE Edinburgh-based property development company Whiteburn has sold the 43,410sq ft Tun office building in Edinburgh's Holyrood area in a deal worth about 15 million. It has been bought by fund manager Cordea Savills on behalf of the Charities Property Fund. Current occupants include BBC Scotland, Scottish Enterprise, the European Parliament, the Tun Bar & Kitchen, the Commission for Racial Equality, British Council Scotland and the General Medical Council. CB Richard Ellis represented Whiteburn, with Davidson Chalmers providing legal expertise. Tods Murray represented Cordea Savills.

A MULTI-LET pair of townhouses at 3 and 4 Queen Street, Edinburgh, has been sold to a private investor by Beagmhor Property for 4.16m. The property comprises two traditional townhouses with basement, ground and two upper floors, totalling more than 16,331sq ft of refurbished office space with an annual rent of 254,717. The price reflects a net initial yield of 5.79 per cent. Donaldsons, now part of DTZ, acted for Beagmhor. Brodies provided legal advice for the purchaser. Davidson Chalmers acted for the vendor.

CHARLES Spence, advised by IPPC Commercial Property Consultants, has acquired from Irish investors WG Mitchell for an undisclosed sum 8 and 9 Rutland Square. His firm, Spence & Spence, financial advisers, will occupy the fully refurbished No 8 office, moving from Albyn Place. IPPC represented the purchaser, with J&E Shepherd for WG Mitchell.

WG MITCHELL, again represented by J&E Shepherd, has disposed of another Edinburgh office building - 16 Walker Street, which went for more than 900,000. Culverwell did the deal, acting for corporate hospitality company Match Point which will refurbish the 3,300sq ft building.

SCOTLAND'S most westerly hotel, the 39-bedroom Isle of Barra Hotel, Tangasdale Beach, Castlebay, Barra, has been sold by John and Elizabeth Johnston, now seeking a new hotel opportunity in central Scotland. The new owners are Guy Adams and Teresa Jenkins, who have moved from Middlesex. The price was not disclosed but selling agents Colliers Robert Barry said it was close to the asking price of offers over 600,000.

KENMORE Property Group has secured a substantial tenant for Anderson House in Leith's Bond Buildings after buying it earlier this year. Orchard & Shipman, providers of social housing management services, will lease 4,025sq ft of office space in the Breadalbane Street building in a ten-year deal worth 66,400 a year. Jones Lang LaSalle and King Sturge represented Kenmore.

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