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INVEST
EDINBURGH
QUaRTERly INVESTmENT maGazINE fRom ScoTlaND’S capITal
JUly To SEpTEmBER 2011
voted europe’s top small city by fdi magazine
alSo INSIDE ISSUE 37 » STaTE STREET laUNcH EURopEaN cENTRE of ExcEllENcE »
NEw mEDIcal RESEaRcH cENTRE » ImmIGRaTIoN To cITy » kEy EcoNomIc INDIcaToRS
lINkING wITH mUNIcH
SloTTING IN wITH THE faSTEST GRowING
EcoNomy IN THE EURopEaN UNIoN

<capITalfocUS

IN THIS ISSUE
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as mRc-cRm’s centre manager Dr
Gordon mclean outlines: “The new
building promotes interaction and
collaboration. There will be a centralised
tissue culture facility surrounded by lab
space separated from the write-up desk
space by a floor-to-ceiling glass wall. In
addition we will have a break-out area,
a seminar room and several small
meeting rooms, so there will be lots of
opportunities to share ideas.’’
other research at the mRc-cRm is
focused on understanding the properties
of stem cells, how to control stem cell
self-renewal and differentiation in vitro
and in vivo, and how to harness this
knowledge to develop new therapies.
with the facilities and collaborative
opportunities on offer, all the scientists
working under the umbrella of the
SRcm are well placed to lead the field of
regenerative medicine and create future
therapies for patients.
“Given the huge strides being made
in regenerative medicine at the moment,
I can’t think of a more significant
development anywhere in the Uk’s
bio-pharmaceutical industry,” adds
Dr mike capaldi, commercialisiation
Director at the Edinburgh BioQuarter.
the £54 million investment will house
250 researchers working specifically on
the application of research in stem cell
sciences to conditions such as diabetes,
heart disease and cancer.
professor Sir Ian wilmut – the leader of
the team that developed Dolly the sheep –
is chairman of the ScRm at the University
of Edinburgh. Describing his vision for the
future of research on the new site, he said:
‘‘In this building we will bring together
three different groups of scientists of the
mRc centre for Regenerative medicine
to develop a one-stop shop that brings
therapies from the bench to the clinic.
“The basic stem cell biologists are trying
to understand how to maintain and use
stem cells, the translational scientists
are working on issues like scale up and
protocol optimisation and the clinicians
are going to deliver these cells or therapies
to patients. we will also have a Gmp (good
manufacturing practice) facility in the new
building that will be run jointly by a not-for-
profit company called Roslin cells and the
Scottish National Blood Transfusion Service.
They will provide us with the key ability to
make sure that protocols developed in the
THE fIRST woRD
w
elcome to Invest Edinburgh, the quarterly investment
promotion magazine. last year, the city of Edinburgh
council identified six cities offering the greatest potential
for future inward investment flows for its international investment
engagement strategy. after focusing on Tianjin in china last
quarter, this issue considers the opportunities our partnership
with munich will bring.
This issue’s analysis feature examines why young and
enterprising people are drawn to Edinburgh (p14); ten questions
are answered by Stephen Hutt and archie Glendinning, cEo and
Director of the Royal Highland centre (p8); Ben Reed, Director of
Jones lang laSalle, offers his expert opinion on latest occupier
activity in Edinburgh (p16); and the imminent opening of the
new Scottish centre for Regenerative medicine at the Edinburgh
BioQuarter campus is reported on in capital focus (p3).
our latest readers’ survey found that the pages on Edinburgh’s
key economic indicators are most important to you. we have now
expanded this section to three pages. any feedback on the new
section or on any other aspect of the publication
would be most welcome to:
editor@investedinburgh.com
Tom BUcHaNaN,
convenor of the Economic
Development committee
cENTRE SEcURES
GloBal pRomINaNcE
SNapSHoTS
watch the fashion scene and enjoy all that Europe’s
second friendliest city can offer
10 QUESTIoNS foR...
Stephen Hutt, chief Executive and archie Glendinning,
Director at the Royal Highland centre
(cover story)
lINkING wITH mUNIcH
we explore the already strong links with the second city
in Edinburgh’s Six city Economic Strategy
aNalySIS
Immigration to Edinburgh: what the city offers
makING IT HappEN
Demand returns to the city’s property sector
aDDED ExTRaS
a new vantage from which to explore this UNESco world
Heritage city
THE STaTISTIcS
The latest key indicators for the Edinburgh economy
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i
NVEST IN EDINBURGH
aRE yoU:
• a retailer looking to expand into a dynamic new market?
• a hotel developer or operator interested in opening a hotel
in a global tourism hotspot?
• a business looking to establish an office or contact centre
in Scotland?
• a property developer interested in development opportunities?
If So, THE cITy of EDINBURGH coUNcIl aND ITS paRTNERS
caN pRoVIDE yoU wITH:
• free, confidential, impartial advice on your commercial
property and land requirements;
• Introductions to key business and civic leaders;
• assistance with recruiting and training staff with the skills
you need;
• advice on accessing grants and other funding;
• Guidance on doing business in Scotland;
• High-quality market intelligence.
To find out more about how we can help you, please contact the
Investor Support team at invest@edinburgh-inspiringcapital.com
or on +44 (0)131 529 6600.
furtHer
information
www.crm.ed.ac.uk
The £54 million Scottish centre for
Regenerative medicine at the University
of Edinburgh, on Edinburgh’s BioQuarter,
combines unrivalled basic research
expertise with established clinical
excellence to deliver world class
translational medicine.
research laboratory can actually be optimised
and scaled up for use in the clinic.
“The ScRm’s location at Edinburgh’s
BioQuarter is ideal as we’ll be next to a
research hospital with a clinical trials unit,
the University of Edinburgh’s teaching and
research facilities, basic research scientists
and biotechnology companies. I think that’s a
unique combination with huge potential for
translational research, but also for the use of
stem cells in drug discovery and development
work. It will be a unique resource in the Uk.’’
The building brings together research
teams of the medical Research council’s
centre for Regenerative medicine (mRc-
cRm) that were previously split between the
chancellor’s Building, the Queen’s medical
Research centre and the Roger land building
on a science campus some two miles away.
Research at mRc-cRm involves basic stem
cell biology as well as tissue regeneration.
over the past years researchers have made
key discoveries that, for example, could help
reduce the need for liver transplants and
provide an alternative source of red blood
cells for clinical transfusions.
ScRm is designed to enhance the
collaborative potential of the research,
fact box:
The opening, later this year, of the new Scottish centre for
Regenerative medicine (ScRm) at the Edinburgh BioQuarter
campus, marks a significant step in securing Scotland’s
reputation as a biotech hub of global significance.
THIS maGazINE IS pRINTED oN ENVIRoNmENTally
RESpoNSIBlE papER maNUfacTURED USING 100%
REcyclED waSTE.
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bite size
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wHaT DoES SHE Do?
a graduate of Edinburgh college of
art, Jett launched her fashion career
in notable style, picking up the title
‘Scottish fashion Graduate 2010’.
wHy IS SHE woRTH waTcHING?
The design brief for the awards, set by
marks & Spencer (m&S), was to create
a cocktail dress for the retailer’s
limited collection brand, which would
be fit to turn heads on the Scottish
fashion awards red carpet.
as winner of the Graduate title –
judged among others by amanda
wakeley, designer, Dolly Jones, editor
of Vogue.com and the renowned
fashion writer Hilary alexander –
Jett learned on the night that her
design was to go into production. In
march 2011, her dress went on sale
through m&S stores in Edinburgh,
Glasgow and the principal store at
marble arch in london.
part of Jett’s prize involved a month
long placement at m&S, where she
learnt about everything from the
manufacturing process to marketing.
wHERE HaS SHE comE fRom?
Jett is a graduate of fashion courses
from both Edinburgh’s Telford college
and Edinburgh college of art. Her
designs have been showcased at
the Uk Graduate fashion week,
in london, and her collaboration
1 To waTcH

NEw acaDEmIc
powERHoUSE UNDERway
JETT SwEENEy
ScoTTISH faSHIoN GRaDUaTE
with m&S was
widely reported.
She now hopes to join
a leading fashion house to expand
her experience.
wHaT DoES IT mEaN foR THE aREa?
Edinburgh college of art has recently
merged with the University of
Edinburgh and the close links
enjoyed by Eca with the Scottish
fashion council enable students to
work on commercially-inspired
projects for Scottish companies such
as macIntosh and lochcarron.
following on from the huge
success of the 2010 awards, marks
& Spencer is again sponsoring the
Graduate category at the Scottish
fashion awards 2011.
“Jett took full advantage of the
work placement with our design
team; a once-in-a-lifetime chance to
see how a brand such as m&S puts its
collections together,” said Dominic
fry, communications Director,
marks & Spencer. “The challenge for
our 2011 entrants will be to show
themselves as a designer who, like
Jett, can harness their natural flair and
creativity to create a commercially
viable garment.”
edinburgh airport enjoyed its busiest
ever april in 2011, handling more than
776,000 passengers. in the 12 months to
april 2011, the airport has had 8.9 million
passengers pass through its terminal.
cray has signed a contract to upgrade
the University of Edinburgh’s High-End
computing Terascale Resource (HEcToR)
project. once upgraded later this year,
HEcToR, the Uk’s national supercomputing
service, will deliver 827-teraflops of
supercomputing power for researchers
wishing to explore complex problems with
global impacts.
edinburgh-based games developer,
rockstar north, has announced plans to
expand its computer game development
team. the plans were revealed ahead of
the launch of la noire, rockstar north’s
latest game, launched in may 2011.
Scottish firms took on staff at the fastest rate
in more than three years last month as the
economy enjoyed a fifth consecutive month
of growth, according to research by Bank
of Scotland. This meant that, for the first
time since September, workforce growth in
Scotland outpaced the Uk average.
maven capital partners has opened an
office in edinburgh and appointed four
investment and portfolio executives. the
firm has been recently selected as the
sole fund manager for the £94 million
scottish loan fund.
Edinburgh’s streets are to feature more
than 120 life-sized sculptures of some of
the planet’s most endangered species in
august. companies can sponsor exhibits,
which will each be commissioned from well
known and local artists. The 120 sculptures
will then be auctioned on 29 September in
aid of Elephant family, the Uk’s biggest
supporter of asian elephants.
The charity hopes to raise
more than £1 million.
scotland is to have a new super-college
following a proposed merger of edinburgh’s
stevenson and Jewel and esk colleges.
The new organisation will become
Scotland’s second biggest college in terms
of turnover, with about 20,000 students.
officials say that if approved – it is subject
to a consultation period which began in
June – then the merged organisation could
contribute more than £100 million a year to
Edinburgh’s economy.
In a joint statement, Brian lister, Stevenson
college’s principal, and mandy Exley, principal
of Jewel and Esk, said: “The new college
would be a real powerhouse for Edinburgh
and deliver substantial benefits in terms of
education, skills and economic development.
a waRm wElcomE awaITS…
edinburgh has been named the second
most family-friendly city in europe in a
survey conducted by tripadvisor.
with its rich cultural history, strong
traditions and scores of free amusements
for children – from castles to museums
– the city scored very highly with
thousands of travellers. In the survey,
one traveller said: “Edinburgh is a
wonderful place to travel with children.”
only the Tuscan city of florence beat
Edinburgh in Tripadvisor’s Travellers’
choice family awards.
Via its user reviews, Tripadvisor –
in partnership with UNESco – also
collected more than 34,000 responses
NEwarrivals
wHo’S oN THE moVE?
US financial services giant State Street has
underlined its commitment to Edinburgh
with the launch of a European centre of
Excellence for cash servicing, which will boost
its workforce in the city from 750 to 840.
wHy THE moVE?
The new European hub will handle
cash servicing for the pension funds, life
assurance companies and asset managers
for which State Street provides investment
administration and custody functions.
continuing our regular feature about tHe latest companies investing in tHe capital
Barry muir, chief operating officer at
State Street, said: “State Street has recently
won a number of large mandates with
large Uk clients and Edinburgh will play
a key role in servicing these.”
wHy EDINBURGH?
Barry muir added: “State Street has for
many years recognised Edinburgh as a
key financial centre and for the high-
calibre talent pool that exists within the
financial services industry across Scotland.
“we are pleased to make this firm
commitment to create a European centre
of Excellence here and we look forward to
building on the strong business growth we
continue to experience.”
State Street operates in 26 countries
and more than 100 markets and has had
a presence in Scotland since 1998. It has
£14.1 trillion in assets under custody and
administration and £1.3 trillion in assets
under management.
> further information:
http://www.statestreet.com/uk/en
> further information:
www.scottishfashionawards.com
“The two colleges are strong and provide
superb educational and training opportunities,
together, they would be stronger and better.”
The new enlarged college could be ideally
suited to meeting the needs of regional
business, particularly the provision of a
trained workforce with vocational skills.
The complementary course strengths
of the two institutions will combine to
deliver strengths and competitive
advantage in energy, tourism and hospitality,
creative industries and across financial and
business services.
> further information:
www.jec.ac.uk
www.stevenson.ac.uk
> further information:
www.tripadvisor.co.uk/travellerschoice
from travellers who have visited the Uk’s
UNESco world Heritage sites. The results,
announced in april, show Edinburgh as
the most recommended site, above other
well-known attractions such as the Tower
of london. (See page 19.)
This latest survey result underlines
Edinburgh’s internationally recognised
tourism credentials. last September, the
city was voted ‘favourite Uk city”, in the
prestigious conde Nast Readers’ Travel
awards and ranks 9 in Tripadvisor’s Top
Destinations in Europe overall.
made in edinburgH
<SNapSHoTS

“IN a compETITIVE ToURISm maRkET aND SHIfTING EcoNomIc
clImaTE, THIS STUDy wIll BE ESSENTIal IN HElpING US IDENTIfy
THE BEST wayS To ENSURE THE fESTIValS
floURISH foR GENERaTIoNS To comE.”
www.investedinburgh.com
6 invest edinburgH | JUly To SEpTEmBER 2011 | | JUly To SEpTEmBER 2011 | invest edinburgH 7
RUNREV
THE EaSy way To cREaTE SofTwaRE
fURTHER GRowTH IN fINaNcE SEcToR
it’s been an incredibly busy year
for edinburgh-based software
developer runrev!
Their first invention – livecode –
allows anyone to create software through
simple, easy to learn expressive statements,
rather than cumbrous markup languages
like html.
However, their launch – in march – of
a version of livecode to enable mobile
phone app-building has seen “interest
go through the roof,” as founder and cEo
kevin miller confirms.
Uniquely, livecode allows app designers
to create their app once and then export
it either for ioS devices, (iphones and ipad),
or to android for mobiles.
“livecode gives users an array of features
that apply across a wide range of devices
and platforms,” explains kevin. “our users
can apply powerful visual effects, drop
shadows and blend mode effects to any
object; process text, crunch data or build
a web application.”
further mobile developments are
planned in the second half of the year,
which will almost certainly ensure another
milestone: “we’re expecting to exceed
annual sales of £1 million for the first time”.
Backed by apple co-founder mike
global financial services leader bny
mellon is the latest financial services
company to announce an expansion
of its edinburgh operations, creating
more than 60 new jobs in June.
The US firm, which provides investment
management expertise, investment
servicing solutions and other financial
services to institutions, corporations and
high-net-worth individuals globally, is
expanding its Blenheim place offices to
approximately 650 employees.
operating in 36 countries and serving
attracting more than four million
visitors each year, edinburgh’s 12
principal festivals are generating more
than £245 million for the city’s economy,
according to the edinburgh festivals’
impact study, published in may.
lady Susan Rice, chair of the festivals
forum, said: “Edinburgh’s festivals are
a cultural phenomenon, celebrated
globally and treasured locally. They are
one of Scotland’s most visible assets
and, thanks to this study we now have
a clearer understanding of the breadth
of their benefits across Edinburgh
and Scotland.”
The study is the largest programme of
research into the economic importance
of the 12 leading international events,
which also sustain 5,200 jobs in various
contributing industries.
Besides the economic impact of
the festivals, the study stressed the
non-monetary, cultural impacts of the
events: for example, the study found
that the festivals are boosting local
pride – according to 89% of the study’s
respondents – as well as enhancing the
profile of the capital to incoming festival-
goers; 93% of whom state the festivals
are part of what make Edinburgh special
as a city.
The festivals were also found to be an
important means of widening access to
the arts. They welcomed more than 32,000
people to workshops and educational
events in 2010, encouraging nearly
two thirds of their audiences to take
greater risks and attend less well-known
performances.
The economic impact of the festivals
is driven by audience expenditure, but
performers and delegates and attending
journalists also make significant
contributions in absolute terms.
The report highlights: “it is the diversity
and quality of experiences offered
throughout the year-round festival season
that makes Edinburgh truly distinctive.”
fESTIVal STUDy REVEalS
moRE THaN ‘fRINGE’ BENEfITS
markkula, miller acquired REV – the multi-
platform development engine developed
by metacard corporation – and established
RunRev in 2001. His Edinburgh-based team of
20, including seven developers, now operate
a global software business with almost half
of all sales in the US and a new distributor in
place for Japan.
“Edinburgh is a perfect city in which to
be based. The calibre of graduates from
Edinburgh’s universities is outstanding and
so many of them want to remain in the city it
has been easy to recruit and retain top talent.”
RunRev’s software is advancing
enormously, but retains kevin’s vision
of providing a powerful yet simple
programming tool that is suitable for anyone
to use. Instead of having to learn traditional
programming languages, users of livecode
can write simple expressive statements and
immediately start to see – and test – the
results, as everything is live.
The revolutionary approach has won the
company a global and rapidly expanding list
of commercial clients. “It’s already being used
for a multitude of purposes, by individuals
and businesses, and is being taught at
university level. “
> further information: www.runrev.com
the second edinburgh international
marketing festival will take place
in edinburgh on 25th august 2011.
it follows the considerable industry
participation and media impact of the
inaugural event, last year.
The vision of the festival remains the
celebration of the marketing industry,
creativity and commercial value in all
forms and remains a world first.
It adds an entirely new focus to both
the Edinburgh festival calendar and
to the development of the creative
industry and cultural economy within
and beyond the city.
The one-day Summit will see key
marketing and creative services trade
and industry organisations join together
to define a vision for the industry.
“EDINBURGH IS a pERfEcT
cITy IN wHIcH To BE
BaSED. THE calIBRE
of GRaDUaTES fRom
EDINBURGH’S UNIVERSITIES
IS oUTSTaNDING aND So
maNy of THEm waNT To
REmaIN IN THE cITy IT HaS
BEEN EaSy To REcRUIT
aND RETaIN Top TalENT.”
> further information:
www.festivalsedinburgh.com
fESTIVal ExTENSIoN
more than 100 markets, BNy mellon has
had a presence in Scotland for more than
20 years and today operates from three
locations in Edinburgh.
The company has over £15.5 trillion in
assets under custody and administration and
£733 billion in assets under management.
Scottish Enterprise, Scottish
Development International and Skills
Development Scotland have worked
closely with the company to support its
Scottish growth plans.
BNy mellon chairman of Europe Tim
keaney said: “Edinburgh is one of our key
centres, and the investment we have made
to build upon our existing presence here
underlines our continued commitment to
the city and to Scotland.”
In 2011, State Street and BlackRock, both
US investment firms, have also announced
expansions to their Edinburgh operations
and more than 600 additional jobs have
been created. (See page 4 and IE36.)
> further information:
www.bnymellon.com
furtHer
information
e: charlotte.a@creativebrief.com
<10QUESTIoNS
www.investedinburgh.com
8 invest edinburgH | JUly To SEpTEmBER 2011 | | JUly To SEpTEmBER 2011 | invest edinburgH 9
IE> Stephen, how long have you been
in post?
SH> I joined as chief Executive of the
Royal Highland and agricultural Society of
Scotland (RHaSS) on 11 april this year. for
me, a real motivation was the ethos that lies
behind the Society and its various activities.
It was set up as a charity in 1784 and has
14,500 members, including some very high
profile people in the business community.
our membership is a huge asset.
IE> So what is shaping RHc’s business
development strategy?
SH > The master plan sets out our
course for the next 15-20 years and was
approved by the city planners and passed
by our members earlier this year. I relish
the challenge of pulling all the strands
together to deliver the project.
like most people from Edinburgh I was
aware of the Royal Highland Show, but
that’s only four days in our annual calendar.
for the other 361 days we host more than
240 events and generate in excess of
£254 million for the local economy. That’s
only a fraction less than the value of all
Edinburgh’s festivals combined.
IE> what does The Royal Highland
centre offer as an exhibition venue that
is unique?
aG> Scale. we are Edinburgh’s ‘big
event’ venue. The site covers more than
280 acres, provides parking for up to
20,000 vehicles and includes indoor and
outdoor event space. The Highland Hall
is Scotland’s largest single span building
and our flexible halls can be hired singly
or combined in various ways. we cater for
everything from a Doll’s House exhibition
to the JlS concert, from the Scottish
Beauty Show to Gardening Scotland,
which hosted live broadcasts by the BBc.
and of course the Royal Highland Show
itself attracted more than 187,000 people
over four days in June last year. our ability
to manage events on a grand scale is tried
and tested.
IE> what type of corporate event uses
the centre?
aG> The quality and flexibility of the
space we can now offer makes us an ideal
venue for all types of corporate and public
events. for example, we’re delighted to
welcome back the VisitScotland Expo for
2012. VisitScotland will host around 800
travel trade buyers from around the world
at the event, which will also be attended by
over 200 Scottish suppliers.
IE> Is RHc an Edinburgh venue then,
or a Scottish venue?
aG> we have 60% of Scotland’s
population living within a 60-minute drive
of the centre, so we’re definitely a venue
that can provide a Scottish audience to
any event organiser.
IE> But you’re located just minutes
from Edinburgh airport, which is
expected to grow significantly. How is that
impacting?
SH > Edinburgh airport is already
the fifth busiest airport in the Uk. Being
situated next to it is an advantage,
particularly for business-to-business
events, but their plans for expansion
were potentially impacting on our own
operations. That was why the master plan
was commissioned by RHaSS.
we have been working closely with
the airport, the city and all stakeholders in
the International Business Gateway – the
development zone lying to the east of
the airport – to create a common goal to
develop the west side of Edinburgh.
IE> How else does your location
impact on business?
SH> part of the benefit that has come
from our master plan is that we have been
able to target what we offer to different
markets. with development work already
underway on one new hotel on the site,
and planning permission approved or
underway for two others, around 600
beds will be added within five minutes of
the site by the start of 2013. That’s a great
resource in terms of business-to-business
events and we also offer a hub for the
agri-business sector. But we’re also talking
with the Edinburgh festival and others
in the city to be more of a resource for
Edinburgh itself and to find new ways of
doing business.
IE> How does the way you position
RHc change for these different markets?
aG> we have a unique resource here:
we are a single organisation with different
facets to offer and part of our work with
the master plan was to identify how we
can get better at using the value of our
brand across all that we do. we want
each audience we target to recognise our
strengths and we can take that ambition
forward using the master plan.
IE> Tell us a little more about how the
venue has been evolving?
SH> connectivity is a key thing we offer,
with the site lying next to the junction of
the m8 to Glasgow, the m9 to Stirling and
the m90 – the Uk’s quietest motorway –
to perth. we are working with all the bus
companies to improve public transport
access to the site and on-going investment
will see us adding a new road and
additional access points; new wi-fi on site
and further reconfiguration of our space
in the next 12 months. with additional car
parking, the hotel – which will be operated
by Holiday Inn Express – and other
buildings to the east we’re pushing ahead
to develop our infrastructure.
IE> what does the future hold for RHc?
aG> while there was uncertainty over
how the plans to develop the airport
would impact on us there was a period
when investment decisions were deferred.
Now that we have our master plan
approved, improvements have already
been made that will help us be more
people’s first choice. we’re not here to over
promise, but we have a fantastic team who
will deliver what we promise. It’s a very
exciting future.
Stephen Hutt &
archie Glendinning
The Royal Highland centre is Scotland’s venue of choice for trade lifestyle, corporate, sport and leisure
events. with a £1 million investment to its existing facilities just completed – and a 15 year master plan
to develop its offering approved – this is a key moment for a unique venue; as Stephen Hutt, cEo,
and archie Glendinning, Director, explain.
cv
stephen Hutt,
chief executive rHass
In a career that has embraced energy,
brewing, paper-making and the
food ingredients industry, Stephen
combines his training in accountancy
with a drive to achieve tangible
outputs. He has worked with British
Gas Scotland, Scottish & Newcastle
and world markets company, as
well as Smith anderson Group and,
most recently, with kerry Group as
finance Director for the EmEa culinary
Ingredients and flavours Division.
furtHer
information
www.royalhighlandcentre.co.uk
“oUR aBIlITy To maNaGE
EVENTS oN a GRaND ScalE
IS TRIED aND TESTED.”
archie glendinning,
director rHc
archie joined the Royal Highland
centre in 2010. prior to that he worked
in the food and drink industry for
20 years, based both in the Uk and
overseas, and was previously employed
for 13 years by aG Barr plc holding a
variety of roles. as director of the Royal
Highland centre, his role spans strategic
and operational responsibilities.
The Highland Hall: Scotland’s largest single span building.
www.investedinburgh.com
| JUly To SEpTEmBER 2011 | invest edinburgH 11
www.investedinburgh.com
cITIES ENTER INTo NEw paRTNERSHIp
<fEaTURE
In 2010, the city of Edinburgh
council’s Economic Development
Service announced a new
investor engagement strategy,
focusing on a number of the
world’s fastest developing city
regions. one such city is munich,
with which Edinburgh has had a
twinning relationship for more
than 50 years. Both Edinburgh
and munich are keen to step up
their economic engagement.
10 invest edinburgH | JUly To SEpTEmBER 2011 |
SIx cITIES STRaTEGy: mUNIcH
* University of Edinburgh 22, Technische Universität
München (TUM) 58, Ludwig-Maximilians-Universität
München (LMU) 66. Source: QS 2010
T
hat both cities wish to exploit
their economic synergies is not
surprising: munich is home to
the largest concentration of
Dax-listed* companies in Germany;
among them financial giants allianz
and munich Re, as well as the industrial
muscle of Siemens and Bmw – two
powerhouses helping Germany maintain
its position as the world’s second largest
export economy.
Edinburgh’s own financial sector is
the fourth biggest in Europe by asset
value and both cities also boast
universities that are among the top 100
in the world*. The cities also share other
characteristics: as capital of Bavaria,
munich is an important political centre
and the seat of the Bavarian landtag
or state parliament, just as Edinburgh is
home to Scotland’s parliament.
as the largest economy in the European
Union, Germany recorded its fastest
quarter-on-quarter economic growth since
reunification in the second quarter of 2010
– growing by 2.2%. Business confidence
also reached a three-year high in 2010,
with consumer confidence hitting a three-
year high in october. It’s a vibrant market.
wolfgang mössinger, General consul
in Scotland, believes there are many
ways in which the two cities – which first
confirmed their civic twinning agreement
in 1954 – can benefit from each other’s
economic experience. “Relations with
Edinburgh have always worked well at civic
level, focused around youth and culture
– both areas where each city has great
strength. we welcome the drive to build on
that and foster closer economic links.”
Both cities are also cultural hothouses;
offering rich, vibrant festivals, a home to
countless arts organisations and world
class museums that ensure they both
feature regularly among cities scored
highest for quality of life in indexes such
as cushman & wakefield’s European cities
monitor 2010.
Such synergies perhaps help explain
why German property investors have been
• Germany is Scotland’s fourth
largest trading partner, accounting
for 6% of all exports (13% of
Scottish exports to EU countries
excluding Uk.)
Global Connections Survey 2009
• The UK remains one of Germany’s
top 10 export markets.

Recent figures suggest that
there are approximately 100
German companies with
Scottish subsidiaries.
SDI
• Latest research on visitors to
Scotland, from Q1 2011, revealed
that Germany represents Scotland’s
most important overseas tourism
market, overtaking the USa.
(See also ‘Tourism Insights’ on
page 19.)
and remain keen to invest in Edinburgh.
David Davidson is managing Director of
cushman & wakefield in Scotland and has
worked with several German property funds.
“The Germans take a long-term view to their
investments and they recognise that current
prices offer a real opportunity for long-term
growth. German investors are keen on high
quality projects, such as the acquisition of
The Quay at fountainbridge by Deutsche
Bank Real Estate (RREEf) and The cube, a
speculative commercial development in
Edinburgh by kilmartin, which was forward-
purchased by IVG – one of Europe’s largest
listed property companies.
“German investors are comfortable
because they often know the city personally
and know that the quality of workforce,
population of students and the festivals
combine to make Edinburgh a great
business base where it is easier to retain
and recruit good employees.”
David has advised German property
funds on the Scottish market for some years:
“German investors feel Edinburgh has gone
through a dip and are optimistic for the
longer term. They have reserves and know
they can buy today and see a return within
two-three years.”
like Edinburgh, munich is also a
thriving centre of the new knowledge
economy with strengths in biotechnology,
software and service industries, including
finance, and a clutch of key corporate
headquarters including Bmw, Siemens and
Infineon Technologies.
“In these areas, the civic authorities
have many lessons to share,” adds wolfgang
mössinger. “Edinburgh can compete globally
as an attractive city, one which appeals to
high fliers in academia or business, and to
students, so both cities have a lot to share in
their experience of marketing that globally,
to retain and attract people.”
one German national who was
attracted to Edinburgh and has stayed is
max Scharbert, chairman of the German
British chamber of Industry and commerce
(Scotland). max has lived and worked in
Scotland for eight years.
* German Stock Exchange
Bayern munich’s Stadium: allianz arena.


“GERmaN INVESToRS fEEl
EDINBURGH HaS GoNE THRoUGH
a DIp aND aRE opTImISTIc foR
THE loNGER TERm. THEy HaVE
RESERVES aND kNow THEy caN
BUy ToDay aND SEE a RETURN
wITHIN 2-3 yEaRS.”
munich is the capital of the federal
state of bavaria, germany’s third
largest city, and one of europe’s
most prosperous cities. the city has a
population of about 1.4 million and
the metropolitan area is home to
around 2.7 million people.
as capital of Bavaria, munich is an
important political centre and the
seat of the Bavarian landtag (the state
parliament) and all state departments;
the Bundesfinanzhof (the highest
German tax court) and the European
patent office.
munich is a centre for the German
new economy in terms of biotechnology,
software and other service industries.
It is the home of key corporate
headquarters e.g. Bmw, Siemens and
Infineon Technologies. In addition, the
city has a strong financial sector and is
Europe’s largest publishing centre.
munich hosts eleven universities,
including the ‘ludwig-maximilians
University of munich’. with about
47,000 students, it is the second largest
university in Germany and considered
one of its best. munich has 87,000
students, 16% of whom are foreign.
munich is a popular tourist
destination and has been described
as Germany’s ‘secret capital’. annual
festivals include oktoberfest, the
Tollwood festival (music) and the opera
and the film festivals.
Edinburgh and munich have enjoyed
a twin city relationship since 1954.
It is Edinburgh’s oldest link and has
brought together many people and
organisations not just from Edinburgh
and munich but also from Scotland,
Bavaria and beyond.
The partnership has supported
exchange of good practice in areas such
as city development, school pupil and
teacher exchanges, the environment
and equalities.
munich has successfully applied
to the EU’s leonardo programme
for funding to allow colleagues to
spend short placements in Edinburgh
in order to explore and deepen our
understanding of both cities and the
opportunities arising.
a direct flight operates daily from
Edinburgh airport to munich.
www.investedinburgh.com
| JUly To SEpTEmBER 2011 | invest edinburgH 1312 invest edinburgH | JUly To SEpTEmBER 2011 |
<fEaTURE
“GBcIc organise events to bring the
anglo-German communities together and
we attracted between 80 and 100 people to
our spring 2011 event. we’ve been speaking
with Elaine Ballantyne, Head of Investor
Support at city of Edinburgh council, to
discuss more possible events to tie in to
Edinburgh’s strategy.
“we also offer support to Scottish
companies looking to export to Germany
and would be happy to talk to German
companies considering a move into
Scotland. In fact, three German renewables
companies have opened offices in Edinburgh
in the last year, including pNE wind.”
Renewables are high on the political
agenda for both city authorities. “Germany
plans to close all nuclear reactors by
2020 and replace them with renewables,
especially wind,” explains max. “This
should see heightened interest in Scottish
opportunities from German companies,
given the Scottish Government’s own
commitment to generate 50% of Scotland’s
electricity from renewable sources by 2020.”
The German consulate in Edinburgh is
considering an event, to be run in Edinburgh
later in the year, which will bring together
the key stakeholders for renewables.
“most wind companies are based in
the north of Germany,” explains wolfgang
edinburgh sits as the beating heart of
scotland’s life sciences sector, with more
than half of all scotland’s lifescience
jobs located in the edinburgh city
region. it is another key sector where
both cities can benefit from closer links.
Edinburgh’s leading position in life
sciences has been reinforced this year,
with a series of openings at the Easter
Bush Estate, to the south of the city.
These include the Scottish centre for
Regenerative medicine (ScRm) and
the new campus for the University
of Edinburgh’s Royal (Dick) School of
Veterinary Studies (R(D)SVS).
Easter Bush Research consortium,
part of the Edinburgh Science Triangle, is a
partnership between the Roslin Institute,
the moredun Research Institute, R(D)SVS
and Scottish agricultural college and
represents a cornerstone in the Scottish
Government’s life Sciences Strategy.
The Edinburgh Science Triangle is the
collective name for seven research parks –
including Edinburgh Bio-park – clustered
in Edinburgh and the surrounding
lothians. These, cumulatively, provide
world-class facilities for both academic
research and enterprises working to
commercialise the latest scientific and
technological breakthroughs. In animal
biosciences in particular, and in life
sciences generally, Scotland is among the
leading centres of research globally.
The co-existence of medical
bioscience and animal bioscience
expertise in a very concentrated
location sets Edinburgh apart from the
international research community and
offers huge potential for life sciences as
it’s unlikely that stem cell research will be
used to benefit humans until the work has
been proven to benefit animals.
> further information:
www.ebrc.ac.uk
INVESTING lIfE INTo lIfEScIENcES
furtHer
information
e: leon.johnson@edinburgh.gov.uk
e: elaine.ballantyne@edinburgh.gov.uk
“moRE THaN 17,000 VISIToRS
aTTEND mUNIcH REal Expo,
fRom aRoUND 65 coUNTRIES,
To pRESENT THEIR commERcIal
REal ESTaTE pRoDUcTS, So IT IS
a kEy plaTfoRm foR US. wE’ll
alSo USE oUR cUlTURal aND
DIplomaTIc coNNEcTIoNS
To BooST THE EcoNomIc
coNNEcTIoNS BETwEEN THE
Two cITIES.”
mössinger, “but munich’s utility company
is owned by the city. munich has installed
and built biomass devices and has taken
measures to enhance the energy efficiency
of many public buildings. Their utilities
company offers 100% electricity from
hydropower sources. Using this experience
to advise public authorities in Scotland is one
area in which the cities could cooperate.”
The Uk has more offshore megawatt
(mw) capacity installed than the rest of the
world combined and Scotland’s potential
renewable energy resource alone is
estimated at a staggering 60 gigawatts.
with leith Docks capable of supporting
vessels working on these offshore
developments, the city has huge potential
from renewables generally. It is home to
companies developing leading new
technologies, such as pelamis wave power
– which became the world’s first business
to connect a commercial scale deepwater
wave energy device to a national grid, in
2004 – and aquamarine power, which is
on record citing the city’s ‘fantastic number
of higher education institutions’ as
incredibly important in deciding to locate
in Edinburgh.
as an initial step in cementing closer
economic links with munich, the consulate
is hosting a networking event during the
Edinburgh festival, in august, marking the
attendance of the Gebirgsmusikkorps, from
Garmisch-partenkirchen in Bavaria, at the
Edinburgh Tattoo.
“In october, Edinburgh will also have a
presence at munich Expo Real,” adds Elaine
Ballantyne. “This will be an important step in
promoting our collaboration with munich,
and an opportunity to explore further
business and sectoral links”.
leon Johnson, Economic Development
officer, Investor Support, adds: “we are
attending munich Real Expo to promote a
number of investment opportunities that
exist in Edinburgh’s four development zones
– city centre, waterfront Edinburgh, west
Edinburgh and South Edinburgh. our stand,
013 in Hall a1, will have details on each
of these opportunities. I would welcome
potentially interested parties contacting me
in advance to arrange appointments to meet
at Expo Real, in order to learn more about
what Edinburgh has to offer.”
Bmw Head office, munich.
Edinburgh-based pelamis became the
world’s first business to connect a
commercial scale deepwater wave energy
device to a national grid.
SNap SHoT
<aNalySIS
www.investedinburgh.com
14 invest edinburgH | JUly To SEpTEmBER 2011 | | JUly To SEpTEmBER 2011 | invest edinburgH 15
a
s the globalisation of industry
and education transcends
national borders, living in a
location other than your place
of birth is becoming a perfectly normal
occurrence. this is to edinburgh’s benefit:
latest figures published in 2010 confirm
that in-migration exceeded out-migration
by 5,066 people. this briefing reveals
edinburgh’s advantage: young and
enterprising people just want to live here.
klaus zimmermann, head of the
Institute for the Study of labour, a think
tank based in Germany, explained why
many Uk cities attract far more foreigners
than many other European cities: by
immediately granting citizens of new
EU member states the right to work, the
Uk not only attracted business-minded
tradespeople to Britain; the liberal ‘open
doors’ approach also appealed to well-
educated, talented people.
Edinburgh was particularly successful
in attracting both groups: between 2002
and 2009, the number of adult overseas
nationals registering to work in the city
soared by 149%. a particular buoyant rise
was observed between 2004 and 2005
(it more than doubled then); the largest
share of newcomers in that period
stemmed from EU accession states, in
particular poland.
In-migration from overseas countries
to Edinburgh was well above the
Scottish average, reflecting the city’s
strong economy. Glasgow and Dundee,
for example, also had an increase;
however, figures for Scotland’s capital are
higher when relating it to the size of its
population. only aberdeen, Scotland’s
third most populous city and home to the
North Sea oil industry, has a similar pattern
to Edinburgh.
Evidence from Scotland as a whole
suggests that non Uk-born individuals
were more likely to be employed in
professional occupations than those born
in the Uk (17.3% and 12.9% respectively).
most overseas immigrants in 2008/2009
were in the younger age groups – 69%
were aged between 16 and 34 – which in
part reflects the large inflow of students
and graduates willing to stay. a survey
into graduate retention conducted by
the University of Edinburgh found that
good jobs and career development
opportunities were the most important
factors for graduates to stay; for others it
was important to live in a family-friendly
environment or near their partners.
Edinburgh’s unique mix of good job
opportunities, strong economic conditions
and an outstanding quality of life are also
reasons for many Uk residents to move
north of the border. a study conducted by
the market research firms Experian and
leithal Thinking found that most migrants
to Edinburgh from the Uk were young,
well-educated professionals earning
salaries higher than Uk average.
The study found that around a quarter of
those who moved to Edinburgh were part
of the so-called ‘liberal opinions’ group.
www.talentscotland.com
www.edinburgh-inspiringcapital.com/live
for a summary of the Uk Visa system see:
http://www.ukvisas.gov.uk/en
furtHer information
ImmIGRaTIoN To EDINBURGH:
ScoTlaND’S capITal IS aN EVER moRE aTTRacTIVE
locaTIoN foR ENTERpRISING pEoplE
people from this group tend to be avid
explorers of new ideas, cosmopolitan in their
tastes and liberal in their social attitudes.
They work in knowledge-intensive jobs,
particularly within government, the media,
research, consultancy and information
technology. Edinburgh is second only to
london in attracting movers from this profile.
Edinburgh has a fantastic cultural
environment with a year-round programme
of festivals and events, it is the first UNESco
city of literature and has various theatres
and independent cinemas. The city provides
outstanding job and career opportunities in
financial services, tourism and the creative
industries. It is this combination that will,
without a doubt, continue to attract talented
people to Scotland’s capital.
“EDINBURGH HaS a faNTaSTIc
cUlTURal ENVIRoNmENT.”
THEy’VE DoNE IT – aND DoN’T REGRET IT:
mIGRaNTS To EDINBURGH
george minev, ruvisa
(moved from bulgaria)
George arrived from Bulgaria 20 years
ago. Being familiar with the intricacies
of completing visa forms, he decided
to create a company that assists
businesspeople to rapidly get visas to
Russia. Nowadays, RuVisa assists with all
BRIc and various other countries. “The
biggest nations have embassies and
consulates in Edinburgh,” George explains.
“compared to london, embassies here are
around the corner which means that we
can access them quickly.” Nevertheless,
RuVisa founded another branch in
london to also capture the biggest
market south of the border. George now
employs seven staff. George concludes
that “besides being business-friendly,
Edinburgh is a great place for raising my
kids. There is no better place to live, work
and grow a company than here.”
annette götzkes, languagelinks
(moved from germany)
annette stayed in Edinburgh after
finishing university here. “I didn’t have
any concrete plans to create a language
school,” she remembers.
“I began formalising things when I got
my first corporate client, Bp. a designer
friend created the logo, I opened a
business account, bought a fax machine
and languagelinks was born!” Soon
afterwards, lidl, various Scottish councils
and other big players queued for her
services. annette also became the
preferred language supplier for Standard
life – the Edinburgh-based fTSE 100
life assurance and pensions business.
languagelinks now has a pool of tutors
teaching German, Italian, Spanish and
french. Besides the successful business,
annette enjoys Edinburgh’s vibrant
cultural life: “I find it astonishing that a
city of this size has four theatres and hosts
one of the largest art festivals in the world.
I also like the residents’ openness, their wit
and easy going ways.”
prof sethu vijayakumar, university of
edinburgh (moved from Japan)
after completing his phD at the Tokyo
Institute of Technology, Sethu headed
eastwards to become a research assistant
professor in los angeles. The next step
further east brought him to the School of
Informatics at the University of Edinburgh
where he became professor of Robotics.
Sethu knew that the School’s research is
internationally recognised, that Informatics
in Edinburgh delivers more world-leading
research than any other school in the Uk
and contributes 10% of the Uk’s world-
leading research in the computer Science
and Informatics Unit of assessment
(Uoa). any plans to move further east?
after living in Tokyo and los angeles, “I
find Edinburgh a perfect size in terms of
raising a family. culturally it’s very rich, too.
Edinburgh brings everything together. for
me, that’s enough reason to stay.”
<makING IT HappEN 19
<aDDEDExTRaS
www.investedinburgh.com
16 invest edinburgH | JUly To SEpTEmBER 2011 | | JUly To SEpTEmBER 2011 | invest edinburgH 17
laTEST IN HERITaGE TRaIlS TEllS
moRE REmaRkaBlE TalES
cITy GENERaTES INTEREST
fRom occUpIERS
a year ago, we wrote in this magazine
about the cautious improvement
in business sentiment providing a
more stable backdrop upon which
corporate plans and strategies could
be devised. a more forward looking
stance amongst corporates during
2010 assisted the edinburgh office
market – allowing it to return to more
normal conditions, with total take up
representing an increase of 35% on the
previous year and sitting just below
the five and ten year average at
72,464m
2
for the city.
Demand was primarily focused on well
located, good quality smaller open plan
offices within the city centre with a strong
emphasis on public transport and local
facilities for staff. a notable proportion
of deals were driven by lease events and
some of the largest transactions were
‘opportunistic’, clearly taking advantage
of weaker market conditions to secure
better quality offices on attractive
financial terms.
Building on improved leasing activity,
2011 has seen continued interest from
occupiers with take up reaching around
13,935m
2
in Q1. Supply continued to
decline with the overall vacancy rate
falling to 7.3%, significantly lower than
any other Uk Regional office market.
This has been driven largely by declining
Grade B space. However the Grade
a market remains constrained with
vacancy rates stable at just 3.5%.
since 1995, unesco has included
edinburgh’s combination of old and
new town on its World Heritage list.
together, they provide a unique example
of the evolution of town planning.
while many cities boast scenes of
architectural beauty and historical
significance, the sheer quality of
Edinburgh defies belief. It is a resource that
is nurtured by Edinburgh world Heritage
(EwH), a charity funded by the city of
Edinburgh council and Historic Scotland.
Their role is to conserve, protect and
promote the world Heritage Site.
Research reveals that almost half of all
visitors are aware of the city’s UNESco
status before they come – and, with more
than 5,000 listed buildings in Edinburgh,
visitors are spoilt for choice when it comes
to choosing what to see and do. In fact,
across 4.5 km
2
of the city centre, 75% of all
building stock has been identified for its
historical importance.
Exploring the streets of the New Town,
it’s possible for a pedestrian to walk a mile
and see only category a listed buildings
on their route. It’s hardly surprising then,
that more than 90% of all visitors to
Scotland’s capital report that the best
experience to be enjoyed is simply to ‘walk
around’ … and on every street corner
there is a story worth discovering.
EwH’s ‘war Stories Trail’, launched to
coincide with Edinburgh’s role as the
national venue for armed forces Day 2011,
is the latest way in which to explore the
Site’s rich heritage.
The Trail highlights 12 eye-catching yet
often overlooked statues; each of which is
closely connected with the proud history
of Scotland’s fighting men and women.
Together with a related iphone
application, the Trail takes visitors (and
residents) on a journey of military
discovery, starting with the National
and Nelson’s monuments on calton Hill,
which commemorate the Napoleonic
wars. It continues over North Bridge, past
the tribute to the king’s own Scottish
Borderers, before heading to the mound
and the Boer war campaigns of the Black
watch: in particular, the regiment’s brutal
experience at the Battle of magersfontein.
as the new Trail exemplifies, Edinburgh’s
public art has hundreds of fascinating
stories to share.
as we continue through 2011, we
expect to see a slow but steady increase in
demand with financial services including
wealth management, business services
and media/technology proving to be the
dominant sectors. for example, Virgin
money is establishing a new 2,787m
2

headquarters in St andrew Square whilst
BlackRock and State Street both recently
announced significant growth in staff
numbers for their Edinburgh operations.
Edinburgh also captured a significant
inward investment opportunity with
amazon confirming a new call centre
operation at waverley Gate creating 380
new jobs. This was a significant coup for
the city, competing against Newcastle
as a location, where property costs are
considerably lower.
whilst in 2010 we saw a number of
sizeable relocations from within the
public sector, including NHS and creative
Scotland, we anticipate that demand will
reduce as austerity measures take hold.
However Edinburgh, unlike many other
Uk Regions, has a relatively small exposure
to public sector employment at just 15%,
being more aligned to the South East of
london than to the North East ,wales and
Northern Ireland which has the highest
public sector employment figures.
In 2011 the focus will remain on cost
effective space. However, options are
becoming more limited. This squeeze
is particularly apparent for large
requirements where organisations
seeking over 4,645m
2
of modern Grade a
space would only have four options to
choose from within the city centre. The
total Grade a supply stands at
approximately 51,096m
2
which is
equivalent of approximately two years
average take up. whilst we expect
occupiers to remain cautious, a dwindling
supply of larger buildings should start to
register on corporates’ agendas, especially
where they have lease events in the next
two to three years.
while we expect developers to begin
positioning themselves strategically to take
advantage of the impending shortage, the
lack of speculative development funding
will result in a severely limited pipeline.
as Grade a supply reduces further, we
expect to see a return to pre-letting activity.
within the city there is just one speculative
scheme under construction, providing
17,326m
2
within the heart of the Exchange
District, which is due to complete in Q1
2013. known as Site HI, this is the only
new development outside of london and
the South East to offer over 9,290m
2
by
the time it completes. The timing of this
development should prove opportune
taking advantage of a spike in lease events
that will occur during 2013 to 2016.
furtHer
information
www.ewht.org.uk
whc.unesco.org
“THE coNTRaST BETwEEN
THE oRGaNIc mEDIEVal
olD TowN aND THE
plaNNED GEoRGIaN NEw
TowN pRoVIDES a claRITy
of URBaN STRUcTURE
UNRIVallED IN EURopE.
THE JUxTapoSITIoN of
THESE Two DISTINcTIVE
TowNScapES, EacH of
ExcEpTIoNal HISToRIc aND
aRcHITEcTURal INTEREST …
cREaTES [aN] oUTSTaNDING
URBaN laNDScapE.”
unesco World Heritage
description
41% of all VISIToRS aRE
awaRE of THE cITy’S wHS
STaTUS aND 17% of THoSE
wHo comE SUGGEST IT’S oNE
of THE REaSoNS THEy VISIT.
furtHer information
www.joneslanglasalle.co.uk
Ben Reed, Director for office agency at Jones lang laSalle* in Scotland, writes...
* Jones Lang LaSalle is a real estate services and investment management professional services firm active in over 60 countries
Site HI.
<THE STaTISTIcS
18 invest edinburgH | JUly To SEpTEmBER 2011 | | JUly To SEpTEmBER 2011 | invest edinburgH 19
Chart: Combined corporate income tax rate, selected OECD
countries (OECD 2011)
annual statistical overvieW
1 Office of National Statistics
2 General Register Office for Scotland
3 Annual Survey of Hours and Earnings (ASHE)
4 Scottish Corporate Sector Statistics (2010)
5 Valuation Office Agency
6 Edinburgh Solicitors Property Centre
SourcES
7 Edinburgh Airport
8 Office of Rail Regulation
9 STR Global
10 Scottish Tourism Economic Activity
Monitor (STEAM)
11 International Congress and
Convention Association
12 Scottish Government
13 The City of Edinburgh Council
14 Scottish Retail Consortium
15 British Retail Consortium
16 Lynn Jones Research
17 Scotland’s Global Connections
Survey 2009
18 Register of Scotland (Scottish Cities)
19 Land Registry (English & Welsh Cities)
20 Department of Work and Pensions
21 Jobcentre Plus
22 Business Gateway
23 FAME
24 FDI Markets
[i] Comparator cites are London and Norwich
[ii] Comparator cities are Birmingham, Bristol, Cardiff, Glasgow,
Leeds, Liverpool, Manchester, Newcastle and Nottingham.
population & HouseHolds latest
Population
[1]
477,700
Households
[2]
201,737
Population density (persons/km
2
)
[2]
1,811
Natural change (births less deaths)
[2]
1,236
Net in-migration
[2]
5,066
% of population aged 16-65
[2]
71%
labour supply latest
Economically active
[1]
256,500
In employment
[1]
240,300
Employees
[1]
212,200
Self-employed
[1]
27,200
With academic degree
[1]
147,700
With higher degree
[1]
52,300
WealtH & productivity latest
Median pay for Edinburgh residents
[3]
£27,504
Gross Value Added (in million)
[1]
£16,301
Total GVA growth on previous year
[1]
5.3%
GVA per capita (resident population)
[1]
£34,562
Registered Enterprises
[4]
15,740
Annual gross disposable household income
[1]
£17,160
property market latest
Prime city centre office rentals (sqm/year)
[5]
£290
Industrial starter unit (sqm/year)
[5]
£85
Zone A shop unit (sqm/year)
[5]
£1,800
Average residential selling price in Q4/2010
[6]
£213,685
Year on year % change
[6]
-2%
Total sales value, all properties in Q4/2010 (million)
[6]
£241.20
tourism latest
Annual airport passenger volume (million)
[7]
8.6
Annual rail station passenger volume (million)
[8]
17.57
Average hotel room occupancy 2010
[9]
76.90%
Average revenue per available room
[9]
£61.40
Annual tourist expenditure (million)
[10]
£1,137.50
World ranking for conferences
[11]
29
scottisH total int’l exports (£m) latest
EU Exports
[17]
9,590
Agriculture, Forestry & Fishing
[17]
155
Production & Construction
[17]
6,955
of which manufacturing
[17]
6,695
Services
[17]
2,480
Rest of World Exports
[17]
10,655
Share of economically active Edinburgh
residents with higher degree
[1]
latest trends
tourism Q1/2011
Airport Passengers (million)
[7]
1.9
% Annual Change 8.4%
Hotel Occupancy
[9]
65.4%
% Annual Change 1.8%
Revenue per available room
[9]
£45.60
% Annual Change 3.8%
retail Q1/2011
Footfall (number of pedestrians in city centre)
[13]
5,808,871
% change on Q1 2010 12.40%
Sales (Edinburgh) % change on Q1 2010
[13]
2.58%
Sales (Scotland) % change on Q1 2010
[14]
1.07%
Sales (UK) % change on Q1 2010
[15]
1.13%
Visitors spend on shopping, % change on Q1 2010
[16]
9.50%
labour market Q1/2011
Jobseeker’s Allowance claimant count
[20]
32,701
% Annual Change
[20]
-4.10%
Jobseeker’s Allowance claimant rate
[20]
3.30%
% Annual Change
[20]
-0.26%
Vacancies advertised by Jobcentre Plus
[21]
6,696
% Annual Change
[21]
-14.23%
Housing Q4/2010
House Prices
[18]
£216,445
% Annual Change
[18]
3.10%
House Sales
[18]
1,979
% Annual Change
[18]
-6.00%
Average house sales comparator cities
[19] [ii]
1371
% Annual Change
[19]
-16.30%
business Q1/2011
Business Start Ups
[22]
404
% Annual Change
[22]
-14.76%
New Incorporations
[23]
1130
% Annual Change
[23]
28.10%
Foreign Direct Investment
[24]
7
% Annual Change
[24]
40.00%
scottisH/uk gdp, annual groWtH to Q4/2010
Q4/2010
Total Gross Value Added, Scotland
[12]
0.8%
Total Gross Value Added, UK
[12]
1.4%
Services Sector, Scotland
[12]
-0.1%
Services Sector, UK
[12]
1.1%
Construction Sector, Scotland
[12]
11.2%
Construction Sector, UK
[12]
6.0%
Results from the Edinburgh Visitor Survey
from the first quarter of 2011 reveal that
42% of all visitors to Edinburgh were aged
45+. This is up 7% from 2010 and up 13%
from 2009. more than half of all visitors
came from the Uk (52%); the largest share
of those came up from london (18%)
and North west England (19%). The main
overseas market was Germany – 11% of
overseas visitors – followed by tourists
from the US (9%; a fall from 15% recorded
in 2010). The vast majority of visitors stay
overnight; the average length of stay was
three days. Edinburgh castle remains
the most popular attraction in the city
(74% visited this site) followed by St Giles
cathedral and the National Galleries. when
rating the level of service received, visitors
demonstrated high satisfaction with
Edinburgh as a tourist destination.
The whole report can be requested
from Dr Tom mathar, market Research
Executive at marketing Edinburgh ltd.
tourism insigHts
Property Market Edinburgh v London
[5]
Average Room Occupancy 2010
Edinburgh v Comparator Cities
[9]
Q1 2011 on Q1 2010 % change
[7,9 & 13]
capital goes where it’s treated best. figures from 2011 reveal that the Uk’s combined corporate
income tax rate is amongst the lowest in oEcD countries. of the English-speaking countries,
only Ireland has a lower rate than the Uk; New zealand, australia and the United States all levy
a far bigger burden on companies. George osborne, the Uk chancellor of the Exchequer, plans
to further reduce the main rate of corporation tax: by 2014 the Uk rate will have reduced to
23%. for companies with tax-adjusted profits below £300,000 corporate tax was decreased to
20% on 1 april 2011. The patent Box is another measure created by the current Government to
stimulate research and innovation; according to this policy, from 2013, corporation tax on the
income derived from patents is reduced to 10%.
Chart: Combined central and sub-central (statutory) corporate income tax rate given by the adjusted central government rate plus the
sub-central rate, selected OECD countries (OECD 2011)
corporation tax
For more annual statistical information see www.edinburgh.gov.uk/edinburghbynumbers
For monthly updates on Edinburgh’s Economy see ‘Essential Trends’ and ‘Edinburgh Economy Watch’
* (Figures were taken before Invest Edinburgh went to press on 22 June after 18:00)
follow the council’s Strategy & Research linkedIn Group
to keep informed about latest findings/surveys
0
5
10
15
20
25
30
35
40
comBINED coRpoRaTIoN INcomE Tax RaTE
Japan
United States
france
Germany
australia
Norway
New zealand
canada
Sweden
United kingdom
Netherlands
Denmark
austria
United kingdom (from 2014)
poland
Ireland
Academic
Degree
Prime City Centre
Office Rental (sqm/year)
Zone A Shop Unit
London
London
Edinburgh
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Edinburgh
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Retail Sales
Airport
Passengers
Hotel
Occupancy
Revenue
per
available
room
Footfall
Average House Prices in Edinburgh
[18]
190,000
195,000
200,000
205,000
210,000
215,000
220,000
225,000
230,000
235,000
Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2010
expenditure of staying visitors
in Q1 2011 (per person/per day)
Accommodation
£31.48
Eating/Drinking
£23.86
Shopping
£15.71
Entertainment
£9.45
Travel/Transport
£4.68
Accommodation
£27.50
Eating/Drinking
£19.45
Shopping
£14.34
Entertainment
£8.25
Travel/Transport
£3.48
expenditure of staying visitors
in Q1 2010 (per person/per day)
68.00%
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
82.00%
84.00%
Vienna
Greater
London Edinburgh Paris
Amsterdam
Q1/2011 Claimant Rates
[20] [i]
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
AberdeenEdinburghGlasgow
Comparator
Cities
Scotland
edinburgH sHare index
name last price* change
Royal Bank of Scotland Group plc 37.35 -1.3
Standard life plc 205.3 -1.7
murray International Trust plc 943 -4.5
cairn Energy plc 411.8 -8.1
Havelock Europa plc 15.51 -0.99
John menzies plc 499 6

Johnston press plc 4.46 0.05
melrose Resources plc 235.75 -2

optos plc 171 0
wolfson microelectronics plc 238 -2
maJor investment trust companies
aberforth Smaller companies Trust 7.83 0.01
Edinburgh Dragon Trust 2.58 0.01
Edinburgh Inv Trust 4.7 0.03
Edinburgh US Tracker Trust 6.55 0.06
Scottish american Inv Trust 2.42 0.02
The Scottish Investment Trust plc 491.1 -4.5
Scottish mortgage Investment Trust plc 711 -11
aim listed
Bowleven plc 320.75 -1.5
caledonian Trust plc 107 7
craneware plc 610 2.25
cupid ltd 8.37 0.57
IndigoVision Group plc 440.4 0.4
Quayle munro Holdings plc 660 35
Sigma capital Group plc 7.79 -0.21
J. Smart & co. (contractors) plc 394 -21
Dawson International plc 2 0.1
omega Diagnostics Group plc 14.27 -0.1
Charts: Lynn Jones Research Ltd, Edinburgh Visitor Survey Q1 2011
all RIGHTS RESERVED. maTERIal coNTaINED IN THIS pUBlIcaTIoN may NoT BE REpRoDUcED, IN wHolE oR IN paRT, wITHoUT pRIoR pERmISSIoN of THE cITy of EDINBURGH coUNcIl (oR oTHER copyRIGHT owNERS).
wHIlST EVERy EffoRT IS maDE To ENSURE THaT THE INfoRmaTIoN GIVEN HEREIN IS accURaTE, No lEGal RESpoNSIBIlITy IS accEpTED foR aNy ERRoRS, omISSIoNS oR mISlEaDING STaTEmENTS.
edinburgh gva (£m)*
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
£8,112 £8,527 £8,942 £9,285 £9,642 £10,259 £11,225 £12,079 £12,712 £13,309 £14,192 £15,304 £16,301
gva per head*
£18,232 £19,130 £20,039 £20,763 £21,502 £22,848 £25,052 £26,941 £28,019 £29,069 £30,620 £32,697 £34,562
620,000 consumers within 30 minutes drive from
Edinburgh city centre. 1.9 million consumers
within an hour’s drive from Edinburgh city centre.
almost a quarter of those are affluent young
professionals with significant spending power.
IN BRIEf...
EaSy accESS
To maRkETS
gross disposable Household
income per Head (£)
manchester
13,290
Glasgow
13,571
Bristol
13,582
Edinburgh
17,160
london
19,658
Edinburgh airport welcomed 8.6 million passengers in 2010. Edinburgh
waverley, the capital’s central station, had 17.5 million passengers in 2009.
The trend continues upwards.
wHERE EDINBURGH ScoRES
TRaNSpoRT lINkS
Journey time (hours)
london
Glasgow
aberdeen
New york
munich
Destination
QUalIfIED STaff
Undergraduate Degree/
professional Qualification: 147,700
Higher Degree: 52,300
Intermediate 2: 34,000
Intermediate 1: 24,100
Top Destinations in Europe
1. paris, france
2. Rome, Italy
3. london, Uk
4. Barcelona, Spain
5. prague, czech Republic
6. Venice, Italy
7. St petersburg, Russia
8. florence, Italy
9. Edinburgh, Uk
10. Istanbul, Turkey
Best Small European cities
1. Edinburgh, Uk
2. zurich, Switzerland
3. manchester, Uk
4. The Hague,
The Netherlands
Best cities in terms of Quality of life
1. Barcelona, Spain
2. munich, Germany
3. Stockholm, Sweden
4. paris, france
5. zurich, Switzerland
6. madrid, Sweden
7. copenhagen, Denmark
8. Edinburgh, Uk
9. Geneva, Switzerland
10. london, Uk
a STaBlE EcoNomy
king’s cross
4 hours (by train)
0:54 hours (by train)
2:20 hours (by train)
2:15 hours (by plane)
7:35 hours (by plane)
SEE oVERlEaf foR moRE STaTISTIcS...
Source note (l-r): fDi magazine’s European Cities and Regions of the Future 2010/11, Cushman
& Wakefields’ European Cities Monitor 2010, TripAdvisor’s Travellers’ Choice 2011.
*Prices are not adjusted for inflation
5. Utrecht, The Netherlands
6. lyon, france
7. antwerp, Belgium
8. malmö, Sweden
9. leeds, Uk
10. Bristol, Uk