invest edinburgh (april- june 2010)

INVESTEDINBURGH

QUaRTERly INVESTmENT BUllETIN fRom ScoTlaND’S capITal apRIl To JUNE 2010

packING aN EcoNomIc pUNcH EDINBURGH RETaINS fDI TITlE aS EURopE’S BEST Small cITy

voted europe’s top small city by fdi magazine

INSIDE ISSUE 32 » alaN m. JoHNSoN’S VISIoN foR EDINBURGH » 10 QUESTIoNS foR malcolm NaISH of SWIp » cITy cENTRE DEVElopmENT UpDaTE » a fEaST of flaVoUR

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IN THIS ISSUE

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EDIToRIal TEam:

kenneth Wardrop, ailsa falconer, lindsey Sibbald, Susan Robertson, kyle Drummond and Stuart Seaton.

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2 invest edinburgH | apRIl To JUNE 2010 |

THE fIRST WoRD

Welcome to the latest issue of Invest Edinburgh, the quarterly investment promotion magazine of the city of Edinburgh.

The Edinburgh city Region continues to cultivate its international profile and reputation as an attractive inward investment destination, as underlined by the city’s attendance at mIpIm 2010, the latest annual gathering of Europe’s leading real estate movers and shakers.

This event reinforced the recent findings of fDi magazine’s European cities of the future 2010/11 awards which, for a second successive occasion, ranked Edinburgh as Europe’s best small city for foreign direct investment. The findings of fDi’s research are explored in this issue’s cover feature, where we examine the methodology used, the results and what they mean for our city in terms of current economic performance and future outlook.

Despite some turbulent times over the past 18 months, Edinburgh’s financial services sector is beginning to demonstrate its remarkable powers of recovery as businesses seek to capitalise on the opportunities now available across the city. It’s a theme supported by malcolm Naish, of Scottish Widows Investment partnership (SWIp), the subject of our latest 10 Questions. malcolm reflects on the strong performance of SWIp over the past nine months and explains the rationale behind its investments in property developments in Edinburgh such as Exchange place.

In making it Happen, we profile some of the exciting new developments currently underway or planned for the city centre, these include a number of major projects designed to boost Edinburgh’s retail offering and a major announcement relating to the future of New parliament House.

The credit squeeze has undoubtedly placed significant pressure on sources of finance for many firms across the region. In our regular analysis piece we take a look at the range of business support grant assistance available to entrepreneurs as they seek to raise capital for investment projects that create and protect jobs or deliver new products and services.

as always, I would be interested to hear any feedback you have on Invest Edinburgh.

If you would like information on the opportunities for raising awareness of your business amongst the readers of Invest Edinburgh, please contact the editorial team at [email protected] for an informal discussion.

Tom BUcHaNaN,convenor of the EconomicDevelopment committee

SNapSHoTSa round up of news from across the city

10 QUESTIoNS foR...malcolm Naish of the Scottish Widows Investment partnership on opportunities for property investors

(cover story)EDINBURGH poWERS To aN fDI kNockoUTfDi magazine’s European cities of the future

aNalySIS an overview of business grants in Edinburgh

THE STaTISTIcSThe latest key indicators for the Edinburgh economy

makING IT HappENThe changing face of our city centre: an overview of development activity in central Edinburgh

aDDED ExTRaSculinary excellence to tantalise every taste bud

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www.investedinburgh.com | apRIl To JUNE 2010 | invest edinburgH 3

In the last issue of Invest Edinburgh professor mark Schaffer of Heriot-Watt University was optimistic about the outlook for Edinburgh. I do not disagree with his view that Edinburgh

is relatively well placed to cope with the remainder of this recession. However – and I shall try very hard to avoid being a prophet of doom – not only are we not clear of the recession woods yet, but the full repercussions of the difficult times through which we have already passed have yet to be felt. That is especially true for the public sector. and the wider effect of tough times for the public sector will be felt across our whole economy, particularly in Scotland where that sector constitutes such a high percentage of overall activity and employment.

The Uk entered recession with an annual deficit that was too high – it should really have been a surplus in those boom years. But the good news is that our level of overall public debt was distinctly low relative to most other countries across the globe. Indeed Uk debt as a share of GDp was much lower than in the US, Germany or france and light years away from Italy, Japan or Greece. So the Uk must cut back the level of the deficit on a planned and sustained basis. Indeed the fiscal Responsibility act recently given Royal assent introduced a statutory requirement for the level of borrowing to be halved from the 2009-10 peak over a four year period. That will be achieved by a balance of tax increases and spending cuts. Whoever sits at No 11 Downing Street you should expect more of the latter than the former.

The story in Scotland is complicated by the complexities of the Barnett formula; and also potentially by George osborne’s proposed 12 month moratorium on cuts here. also, of course, the scope for specific tax increases is limited. In order of magnitude terms, even with the osborne concession, we should expect something like £3-4 billion of public expenditure cuts in

Scotland over the next four years. achieving this will not, to state the blindingly obvious, be easy. Especially as additional cost pressures are with us via an ageing population, pressure to reduce emissions, waste management requirements, a council tax freeze, outstanding pfI costs and the impact of a range of free services. public expenditure in Scotland is highly decentralised, with the NHS and local authorities accounting for roughly one third each. a high share of these costs is spent on employees.

The first priority for central government, local government and the NHS will clearly be to increase efficiency. The more that the

same quantity and quality of service can be provided at lower costs the less services will need to be cut. But there will be no escape from service cuts; and public sector employees are now facing the same pressures faced across the private sector for the past two or three years. Ernst and young have talked about the ‘inevitability’ of public sector job cuts. public sector pay and associated costs such as pensions will

be under increasing pressure. The fraser of allander Institute has suggested that Scotland’s traditional bias towards the public sector adds to the risk of ‘double-dip’ recession.

The Scottish Government’s appointment of ‘three wise men’ to comment on options for dealing with our public finances is most welcome. Balanced, informed and objective external comment is always of value. But there is no escaping the fact that really tough choices will be required, in all components of our public sector. That should include taking a fresh look at some seemingly fixed commitments. Nothing should be wholly sacrosanct. as mark Schaffer told us Edinburgh remains relatively well placed and should be successful in attracting new, internationally competitive, activities. But even here really difficult times lie ahead for which we all need to be well prepared.

THE VIEW fRom HEREJeremy a. peat of the David Hume Institute contemplates the challenges ahead.

“THE fIRST pRIoRITy foR cENTRal GoVERNmENT,

local GoVERNmENT aND THE NHS WIll clEaRly BE To

INcREaSE EffIcIENcy.”

Jeremy A. Peat is Director of the David Hume Institute.


Edinburgh chamber of commerce, voted the Uk’s best chamber in November 2009, is inviting submissions for the chambers award 2010. closing date is 28 may.source: Edinburgh Chamber of Commerce

fact:

SamplE THE BEST WITH NEW fESTIValS paSSpoRT

the newly-launched edinburgh festivals passport promises to provide visitors to the city, particularly those on a short city break, with the perfect snapshot of the unrivalled quality and immense diversity offered by the city’s summer festivals programme.

With a growing number of festivals taking place simultaneously throughout august visitors to Edinburgh can sometimes feel blinded by the seemingly limitless range of entertainment on offer.

The answer lies with the passport, developed by festivals Edinburgh, which offers a hassle-free way of navigating the myriad pages of festivals programme. for the first time it allows tour operators to offer visitors a pre-packaged ‘best of’ flavour of the festivals programme, either for individuals or groups.

once this year’s line-ups are finalised, festivals Edinburgh will hand-pick a bank of tickets across the world-renowned Jazz and Blues, International, mela and Book festivals as well as the exciting and dynamic fringe and art festivals and the ever popular Royal military Tattoo. The views of respected critics will be sought to help develop each itinerary.

Visitors taking up a passport package will be rewarded with ‘insider’ hints and tips, delivering the best possible festival experience. other benefits include discounts in festival bars and cafés, free fringe events and advice on where to eat and what to do while in Europe’s festival capital.

> further information: www.edinburghfestivals.co.uk /trade-passport

INVESTmENT SUppoRTED the economic development unit (edu) of the city of edinburgh council has supported just under £400 million of new physical and commercial investment into edinburgh over the 2009/10 financial year. this success means that the edu is

now well on track to meet its three-year target of supporting £600 million of new investment into edinburgh by april 2012, despite the economic climate having led many businesses to put expansion plans on hold and freeze capital expenditure.

The EDU has supported this new investment through a series of timely, practical interventions, making full use of the council’s statutory powers, property portfolio and considerable influence. Support provided to investors by the EDU over the course of the year has included:• Workingwiththeownersand

developers of mothballed sites to create revised schemes reflecting the changed market conditions;

• Grantingminutesofwaiverforburdenson property, lifting legal constraints on development;

• Engagingwithutilityprovidersto avoid delays to the practical completion of schemes;

• Liaisingwithagentstohelpidentifythe most suitable units for occupiers;• Producinganonlinecommercial

property database and occupiers’ guide.

The new investment supported will create hundreds of new jobs, enhance the physical attributes of the city and bring dynamic new businesses to Edinburgh, further strengthening the city’s already-resilient economy.

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bite size


WHaT Do THEy Do?artemis Intelligent power has developed its trademarked Digital Displacement® hydraulic power technology. Its modular hydraulic motors and pumps create the world’s most efficient and controllable hydraulic systems; used in fields as diverse as active suspension systems in vehicles to enhancing the efficiency of wind turbines by replacing traditional gearboxes.

WHy aRE THEy WoRTH WaTcHING?The winner of the carbon Trust’s 2009 Innovator of the year award – beating off competition from 250 other British companies – Digital Displacement® technology delivers efficiency improvements of up to 60% in traditional hydraulic systems, reducing

temperatures and eliminating the need for expensive cooling systems.

WHERE HaVE THEy comE fRom?artemis’ Digital Displacement® technology is a direct descendant of the work originated by professor Stephen Salter’s Wavepower project at the University of Edinburgh – to couple the movement of slow and irregular ocean waves to the high-speed rotation of electrical generators. Since spinning-out from the University of Edinburgh in 1994, artemis has grown organically and now employs 25 people.

WHaT DoES IT mEaN foR THE aREa?artemis will continue to grow, along with its team. The business continues to develop hardware for ever larger power transmissions, assisting licensees in getting products to market while also deploying its technology into a wide variety of applications.

> further information: visit www.artemisip.com

1 To WaTcH

THE camERa NEVER lIES

a number of airlines have announced the launch of new direct flights between edinburgh and destinations including stockholm (norwegian), faro, marrakech and paris (ryanair), vilnius (star1 airlines), düsseldorf and frankfurt (lufthansa) and barcelona (spanair).

Work on the 49 kilometre Borders Railway, which will link Edinburgh to the Scottish Borders via midlothian, has begun.

Hsbc has announced plans to recruit 70 new employees for its contact centre at edinburgh park.

Edinburgh shopping boutiques Jane Davidson and pam Jenkins have appeared in a list of the top 40 fashion retailers in Great Britain compiled by Vogue magazine.

outdoor equipment retailer tiso has invested £250,000 in a revamp of its flagship store on rose street.

a report commissioned by the chief Scientific adviser to the Scottish Government has found that Scotland publishes more research papers per unit of GDp than any G8 country.

edinburgh-based merchant bank Quayle munro has reported a 500% rise in pre-tax profits on the previous year.

Retailer Sainsbury’s has announced that it is to open as many as 12 convenience stores across Edinburgh over the next two years.

edinburgh-based entrepreneur trace Ward has been recognised in the young innovator category of the John logie baird awards for her invention of a new saddle design.

The camera obscura is to invest in a £1.2 million expansion in response to a 126% rise in visitors since 2000.

Whisky distiller glenmorangie has relocated its headquarters to the cube in edinburgh as part of a global expansion drive.

Edinburgh-based aquamarine power has been granted an exclusive license to develop its 200mW Brough Head wave farm off the coast of orkney, a joint venture with SSE Renewables.

famed for its iconic and historic built heritage, edinburgh has always resonated with the power to inspire artists, writers and great thinkers. according to figures released by edinburgh film focus (eff), the city continues to excel as a creative muse for today’s generation of film and television makers.

In 2009, direct spend from filming in Edinburgh reached a record high of £4.2 million – a 34 per cent increase on the previous year. In addition, the number of days spent filming in and around the city increased to 1,100 – up from 997 in 2008.

With more than 500 enquiries from producers and location managers throughout 2009, Eff helped secure 339 productions in the area, ranging from feature films, TV dramas and documentaries to commercials.

“These figures indicate just how successful Eff’s efforts have been in

marketing the region to filmmakers and highlight Edinburgh’s unique attraction and sheer diversity as a filming destination,” said councillor Tom Buchanan, convenor of the Economic Development committee of the city of Edinburgh council.

among the many productions shot in 2009 was modern urban horror, outcast, starring James Nesbitt, as well as BBc one’s period courtroom drama, Garrow’s law, in which scenes were shot in Edinburgh to represent the 18th century old Bailey in london.

Edinburgh’s cinematic qualities were previously recognised when the capital was voted the sixth most spectacular filming location of any city in the world in a poll of 1,000 film buffs conducted by Sky movies HD in 2008.

> further information: www.edinfilm.com

aRTEmIS INTEllIGENT poWER

made in edinburgH


Uk aSTRoNomy TEcHNoloGy cENTREthe uK astronomy technology centre (atc) is the national centre for astronomical technology of the united Kingdom. the atc designs and builds astronomical instruments for customers including the european space agency and the national aeronautics and space administration (nasa).

Based in modern laboratory facilities at the Royal observatory, Edinburgh atop Blackford Hill, the aTc shares its headquarters with the Institute for astronomy of the University of Edinburgh. a leading Uk centre for research into fields such as cosmology and computational astrophysics, the Institute collaborates with the aTc to deliver the massive technological advances required by modern observational astronomy.

Instruments developed by the aTc include the £37 million Visible and Infrared Survey Telescope for astronomy (VISTa), which features the world’s largest infrared camera. The VISTa has a diameter of four metres, giving it a field of view equivalent to ten times the area of Earth’s moon. completed last year, the VISTa has now

been installed in the European Southern observatory in chile, where recently it captured the first ever clear images of the flame Nebula. The aTc is now conducting design studies for the European Extremely large Telescope (E-ElT), which will be five times more powerful than any existing ground-based telescope.

The aTc brings together staff from a diverse range of disciplines, including engineering, electronics, applied optics and software development. Its membership of the Edinburgh Research partnership in Engineering and mathematics (ERpem) gives the aTc access to the skills and experience of close to 300 local academics.

With the Uk Science and Technology facilities council investing £267 million in ground-based astronomy over the next five years, the skills and expertise of the aTc are certain to ensure that the Uk remains a world-leader in the field of astronomical technology.

> further information: www.roe.ac.uk/ukatc

WEST coaST clIppER REcEpTIoN the 10 month, 56,000 km clipper round the World yacht race continues, with the competing teams now en route to panama. putting out from Qingdao, china at the beginning of march, the Edinburgh Inspiring Capital berthed in san francisco, california earlier this month after successfully navigating the pacific ocean, with the crew members enjoying a few days of shore leave before setting sail for panama on 19 april.

The Destination Edinburgh marketing alliance and Scottish Development International took advantage of the safe arrival of the fleet to host a reception on 8 april, along with a corporate sailing day and whisky tasting offered by Benromach, to raise awareness of Edinburgh as a place to invest, work and study. The 160-plus guests at the reception included local business leaders, Scottish émigrés and representatives of San francisco’s vibrant academic community.

following the success of the reception, DEma and SDI will host a similar event in New york on 3 June, shortly before the Edinburgh Inspiring Capital sets out across the atlantic back to the Uk via cape Bretton Island and cork.

> further information: www.clipperroundtheworld.com/edinburgh

Edinburgh’s year-round festivals attracted over 4.3 million attendees in 2009, up 8.4% on 2008. source: Edinburgh by Numbers

fact:

The flame Nebula (top) as photographed by the VISTa (bottom). Images courtesy of the Royal observatory Edinburgh.

my city

vision

NEW arrivals

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WHo’S oN THE moVE? financial Risk mitigation, a los angeles- based financial background check provider, has chosen Edinburgh as the ideal location in which to open its first European office. fRm investigates the backgrounds of companies and individuals on behalf of financial investors, including hedge funds, investment banks and venture capitalists.

WHy THE moVE? fRm already has a well-established and growing blue chip European client base and is now looking

to expand this further. fRm perceived a significant gap in the provision of specialised financial risk management in Europe. They offer the credibility of a background checks company with a track record of conducting investigations in every country in the world.

WHy EDINBURGH? With its robust asset management sector, Europe presented an obvious opportunity for the business; in particular Edinburgh’s position as one of Europe’s principal financial centres. The new office, which opened on 1 february, is focusing primarily on the hedge fund and private equity markets, but also generally on the asset management sector across the Uk and Europe.

> further information: www.frm-inc.com

continuing our regular feature about tHe latest companies investing in tHe capital

alan. m. Johnston, chair of destination edinburgh marketing alliance (dema)

WHaT SoRT of cITy WoUlD yoU lIkE To SEE?In my business life, which takes me across the globe, I am always struck by the high levels of awareness of our beautiful city. (Edinburgh is truly ‘punching above its weight’.) We need to ensure that awareness is based not only on our cultural, historical and heritage assets but equally on our innovation, entrepreneurship, and academic/research excellence.

Edinburgh is a driver of the Scottish economy and the maximisation of the opportunities for growth need to be fully realised through investment in world class infrastructure and connectivity, innovative collaborations across sectors and support of the next generation of talented people. The city’s economic growth opportunities are being built on business strengths in science and technology, financial services, tourism, academia, and the creative industries.

HoW SUccESSfUlly IS THE cITy moVING ToWaRDS THIS VISIoN?Edinburgh’s scale and the networking opportunities are a strength, offering competitive benefits through the coming together of business, academia and government – the so called ‘triple helix’. There are also tremendous untapped opportunities from cross-selling of messages.

WHaT moRE mUST THE cITy Do?I like the concept of a ‘Team Edinburgh’. In my capacity as chair of the Destination Edinburgh marketing alliance ltd (DEma), Edinburgh’s new city promotion body, I believe this organisation is providing the leadership to advance the vision for the city, to co ordinate city partners’ promotional activities and to tell the world what an inspiring place Edinburgh is to visit, invest, live, work and study.

With the 2012 summer olympics just 27 months away, construction of the necessary infrastructure continues at a breakneck pace. this, however, failed to stop a contingent of stakeholders from london’s property industry from taking time out to attend a breakfast seminar hosted by Jones lang lasalle and the city of edinburgh council on 30 march.

attendees at the event included property investors, developers and fund managers with an interest in establishing or expanding a presence in Edinburgh.

They were welcomed by a delegation headed up by councillor Tom Buchanan, convenor of the Economic Development committee, and members of the Economic Development Unit.

over breakfast, the delegates were

given an overview of Edinburgh’s ambitious development strategy and the opportunities it has created. The seminar was the latest in a series of initiatives by the council intended to strengthen links with the property industry, such as the establishment of the Edinburgh planning and Development forum in april of last year.

The event took place in the Hanover Street offices of Jones lang laSalle, named the top Scottish office agency of 2009 by property Week. The council plans to return to london later in the year to highlight what Edinburgh has to offer to financial services companies currently contemplating an expansion.

> for further information contact: [email protected]

NETWoRkING TalE of TWo cITIES

DEMA is the public/private city marketing alliance for Edinburgh.

> further information: www.edinburghbrand.com


IE> In the second half of 2009, SWIp’s combined portfolio of managing funds grew from £82.7 billion to £141.7 billion. Where does it stand today?mN> The vast bulk of SWIp’s assets are split across three main asset classes: equities, fixed income and property. We review our holdings on a quarterly basis and the most up-to-date figures show us approaching £150 billion in managed funds.

IE> What do you put this growth down to?mN> The principal driver behind this growth has been a decision taken by lloyds Banking Group in august 2009 to sell Insight Investment to Bank of New york mellon. at the same time, the Group announced that the management of funds from HBoS’ bancassurance operations, Bank of Scotland’s wealth management service and clerical medical’s intermediary franchise would move from Insight Investment to SWIp.

The fund transfer, one of the largest ever undertaken in the Uk, completed on 14 march 2010. In total 300 funds have migrated to SWIp, representing £50 billion in assets under management. as a result of the transfer, SWIp has emerged as the centre of excellence for asset management within the lloyds Banking Group.

IE> Has the SWIp business model evolved over the past 12 months to reflect

new opportunities in high-growth asset classes such as property investment?mN> property was previously included in the fixed income part of the Group, but last September SWIp’s managing Director, Dean Buckley, announced an organisational restructure whereby property became a separate entity, reporting to the mD. I joined the SWIp Executive as Director of property, but with a shared responsibility for managing the overall business.

IE> Global property market turmoil has resulted in a “flight to quality” by many investors. How evident has this trend been? mN> With gross income yields in the region of 7%, property is attractive when compared to other options, such as simply holding money on deposit.

This is reflected by the growth of one of our retail funds, the SWIp property Trust (SWIppT), since the third or fourth quarter of 2009. one of the principal reasons behind this activity has been a desire to invest in real assets.

Since the middle of last year, SWIppT has grown by more than £700 million.

IE> To what do you attribute the popularity of the [SWIp-owned] Exchange place office development? mN> In looking at a development such as Exchange place, we look at the quality of the location and also the quality of the accommodation we can provide.

Tenants are naturally attracted to

developments sited within a critical mass of similar businesses. Exchange place to some extent completes the jigsaw puzzle of the area. It’s a prominent central location, with the property divided across three buildings, each providing different options for different occupiers; each building has a BREEam rating of very good or excellent.approximately one third of the total 19,500m2 (210,000ft2) space is already let – interestingly, with one high profile tenant in each building.

IE> What are the benefits to SWIp from being part of the lloyds Banking Group?mN> lloyds Banking Group represents a great calling card. on a recent trip to the far East, the fact that people identified with the Scottish Widows brand and lloyds Banking Group meant we got to meet everyone we wanted to see.

The Group is also a big client of ours – something we take very seriously. The success of the lloyds Banking Group will allow us to continue to grow. finally, the size and the skill-set within the Group allows many areas of our business to tap into specialised expertise.

IE> How does the business evaluate and manage risk on a global scale?mN> SWIp has adapted lloyds Banking Group’s respected operational Risk framework to meet the needs of an asset management firm and we have a highly experienced team of dedicated

malcolm NaishThe Scottish Widows Investment partnership (SWIp) is one of thelargest asset management firms in Europe. according to malcolmNaish, Director of property for SWIp, now is an interesting timeto be an investor. on the back of what has been an exceptionallyturbulent period for global markets, opportunity knocks.

<10QUESTIoNS


professionals working with the business to manage operational risk.

our entire risk-based approach is regularly reviewed to ensure that emerging external factors, such as market volatility and internal factors, such as new product launches, are incorporated into the assessment.

We also have an independent Investment Risk department, tasked with ensuring fund management strategies are in line with the client’s mandate and risk expectations. finally, SWIp has a Regulatory Risk department, which advises the business on global regulatory issues and forthcoming regulatory developments.

IE> How do you anticipate Uk property and gilt yields changing over the next few years?mN> over the past few months, we’ve seen capital values rise as investors begin to identify opportunities in real estate. against that background, rental values have continued to decline as a result of a lack of confidence among tenants to take up new space.

Whilst we expect to see continuing yield compression over the coming months, this will be influenced by the effect on investor and occupier demand of the forthcoming Uk general election and the action Government takes to reduce public sector debt.

It’s certainly an interesting time to be an investor.

IE> To what extent do you feel Edinburgh has weathered the economic downturn?mN> The problems facing the markets over the past 18 months have been the

cv

result of wider global issues and therefore the following recovery remains a global and Uk issue.

In fact, I think there is increasing evidence of people viewing Edinburgh as an attractive option for inward investment. Due to recent cutbacks by some, others see that as an opportunity to capitalise on the city’s skilled labour pool.

IE> How do you perceive Edinburgh’s strengths as a place to locate a business?mN> although the recent downturn has undoubtedly eased the pressure on what was a tight labour market, the skills have not gone. Those looking to come back

into the market are in a strong position to mop up any spare labour capacity.

you only have to look at the strong interplay of financial services businesses here in the city – very significant asset managers sitting alongside other financial services companies, sitting alongside large international banking groups – and you have a compelling case for establishing a presence here in Scotland’s capital.

malcolm Naish has over 36 years’ experience of working in the real estate industry. Born and raised in the West midlands, he first qualified as a chartered Surveyor in 1976 through the college of Estate management (today part of the University of Reading). after moving to london in 1981, he joined Jones lang laSalle, where he became a partner and subsequently Uk mD of laSalle Investment management.

In 2002, he co-founded fountain capital partners, a pan-European real estate investment management and advisory firm, before joining DTZ as Head of Investment management. In 2007, his varied career brought him to Edinburgh as the new Global Head of property with SWIp. He joined the SWIp Executive as Director of property in 2009.

a keen amateur photographer, malcolm enjoys the change of pace of exploring Britain’s inland waterways with his wife, two children and dogs onboard the family’s 19 metre narrowboat.

furtHer information

www.swip.comwww.exchangeplaceedinburgh.co.uk

Exchange place is a flagship office development at the heart of Edinburgh’s central business district, offering over 19,500 m2 of grade ‘a’ office accommodation across three buildings. completed in march 2009, the speculative development is now more than a third occupied.

The modern design and construction used in the development of Exchange place Three (left) has led to the building being awarded the highest possible BRE Environmental assessment method (BREEam) rating of ‘excellent’.

Each of the three Exchange place buildings have attracted a high profile tenant: Hymans Robertson at Exchange one, Wood mackenzie at Exchange Two and Scott moncrieff at Exchange Three.

Exchange place


EDINBURGH poWERS To aN fDI kNockoUTfor the second successive time, Edinburgh has been named ‘Best Small city’ by the financial Times’

fDi (foreign Direct Investment) magazine. But how is the competition judged and what does the

award say about the city?

new foreign direct investment (fdi) into edinburgh over the 2009/10 financial year: brown paper ticket; camper shoes; cancom; codima; delaware north; edp renováveis; financial risk mitigation; frasers property; Handelsbanken; Jdsu; mango; mercy corps; orc international; pandora; primark; taconic; vattenfall and Worldspreads.

“EDINBURGH HaS SolID fUNDamENTalS aS aN INVESTmENT DESTINaTIoN aND THE RIGHT STRaTEGy To copE WITH cURRENT maRkET DIffIcUlTIES aND caRRy IT foRWaRD IN THE fUTURE.”

courtney fingar, editor of fdi magazine


<fEaTURE

The shortlist for fDi magazine’s European cities and Regions of the future 2010/11 represents one of the most authoritative and

widely respected measures of economic performance and potential available to markets and investors.

Which is why Edinburgh has justifiable cause to be satisfied with its achievements over the past 24 months; a period in which the city’s credentials as an attractive inward investment location have been put to the test by a global economic downturn of historical proportions.

Despite the scale and depth of the worldwide financial crisis Scotland’s capital has continued to prove an enticing prospect for many investors. It is this resilience and robust performance that has been instrumental in Edinburgh securing the coveted title of Best Small city in Europe for the second successive occasion.

EDINBURGH BoxES clEVER“It’s a hugely impressive performance that recognises Edinburgh as a world-class capital that really punches above its weight as an investment location,” says councillor Tom Buchanan, Edinburgh’s Economic Development convener.

“We offer one of the Uk’s most highly skilled and qualified workforces; globally significant expertise in a number of key areas such as enabling technologies, informatics, human and animal life sciences; strong sectoral expertise in areas such as

financial services and creative industries; international connectivity; a

competitive cost base and a fantastic quality of life

and place.”for those who may feel

that the

categorisation of Edinburgh as a ‘small’ city belies its status as a global financial services centre and modern capital city, the arbitrary nature of the label is based on a population scale, descending in size from major cities – those home to over a million people, to ‘micro cities’ with a population of less than 250,000.

With a population of more than 470,000, Edinburgh falls in direct competition to other ‘small’ cities (those with populations ranging from 250,000 to 500,000). However, the city also has the economic pedigree, skills base and infrastructure to move up a weight division (in some cases two).

Edinburgh’s continued investor appeal and global stature were underlined by its 10th place in the overall rankings. Not only was Edinburgh the highest ranked small city by some margin, it outscored other European capitals, including Berlin, madrid and oslo. Edinburgh was also ranked the 4th top city in Northern Europe (ahead of oxford, cambridge and Helsinki) and the 2nd top small European city in terms of human resources, reflecting the large pool of graduates resident in the city.

and there is cause for even greater optimism about the future. In addition to assessing current direct investment performance, fDi used data relating to GDp growth, employment growth and economic sentiment to single out Edinburgh as the small city with the best economic potential in Europe, ranked above rivals such as Zurich and luxembourg.

“To have such a strong performance in our location rankings during the challenging economic climate of recent months is an impressive achievement of which the city of Edinburgh should be proud,” said courtney fingar, Editor of fDi magazine. “It is even more notable given this is the second time in a row the city has topped the Small cities category, showing Edinburgh has solid fundamentals as an investment destination and the right strategy to cope with current market difficulties and carry it forward in the future.”

new foreign direct investment (fdi) into edinburgh over the 2009/10 financial year: brown paper ticket; camper shoes; cancom; codima; delaware north; edp renováveis; financial risk mitigation; frasers property; Handelsbanken; Jdsu; mango; mercy corps; orc international; pandora; primark; taconic; vattenfall and Worldspreads.

Image courtesy of allan murray architects


mETHoDoloGySix months of painstaking research, both qualitative and quantitative, is invested in the biennial European cities and Regions of the future 2010/11 shortlist, which compares and contrasts detailed data drawn from across 223 cities and 142 regions in Europe.

fDi magazine’s Jacqueline Hegarty explains the methodology behind the selection of the comparative cities and regions: “We attempted to rank all cities and all regions in Europe – but this was virtually impossible. Instead, the list is compiled from our own fDi markets database, reflecting those cities and regions that attracted the most foreign Direct Investment projects between 2003 and 2009.”

In effect therefore, the comparator cities represented in the cities and Regions of the future 2010/11 rankings represent the best of the best when it comes to economic performance.

Data was divided into six main categories: economic potential, human resources, cost effectiveness, quality of life, infrastructure and business friendliness.

“The fDi Benchmark, used to score each category, aggregates the most reliable, internationally recognised sources, including the World Bank, oEcD, and EURoSTaT, and both national and local statistics offices,” adds Jacqueline. “In addition, we acquired data from specialist providers who are leaders in their field. We also have partnerships with leading data providers such as the Economist Intelligence Unit.”

Jacqueline continues: “fDi Intelligence further validates information as required and undertakes its own primary research.”

Each individual category, for example

economic potential, is scored against a number of criteria; in this case 14 separate measurements ranging from population growth rate to GDp per capita and number of jobs created by foreign Direct Investment (fDI) between January 2003 and october 2009.

cities and regions score up to a maximum of 10 points under each individual criterion, which were then weighted by importance to give the overall scores. Where data was available only at a national rather than city or regional level, a lower weighting was generally applied.

“These weightings ensure greater emphasis on data that we believe to be more significant to a company deciding where to invest,” Jacqueline adds.

EDINBURGH’S WINNING STRaTEGya seventh category was also added to the scoring in 2010, when individual cities and regions were invited to submit details of their fDI promotion strategy. These applications were then assessed by an independent judging panel with “[extensive] experience in the area of site selection for business expansion, in particular in the European region.”

a total of 99 European cities and regions submitted details about their promotion strategy, each judged and scored by the panel. Edinburgh’s own submission, prepared by the city of Edinburgh council’s Economic Development Unit, outlined the investment promotion and support activities undertaken by the Unit and partners such as Edinburgh chamber of commerce, Scottish Enterprise, Scottish Development International and the Edinburgh Science Triangle.


taking place from 16 to 19 march in the palais des festivals et des congres in cannes, france, mipim 2010 brought together more than 18,000 delegates from around the world, including investors, property developers, corporate end-users and hoteliers. Kevin leitch of the city of edinburgh council describes the delegation edinburgh sent to mipim.

Edinburgh was represented at mIpIm 2010 by a small team of property and marketing experts from the city of Edinburgh council and Destination Edinburgh marketing alliance, led by councillor Tom Buchanan.

The event proved to be most successful for Edinburgh, with the team making contact with an estimated 1,100 delegates. These included mayors of European cities, cEos of blue-chip companies, fund owners and managers, international hotel chains as well as support services focusing on city sustainability.

There is an enormous amount of goodwill towards Edinburgh and a growing recognition that it is an attractive

place to invest, which was supported by the fDi magazine award for ‘best small European city’.

although the team worked to promote all four strategic development zones, the Waterfront and city centre generated most interest. Waterfront developments featured heavily on many other city stands, but the combination of consented planning, proximity to the city centre and the Uk’s first application for Tax Increment financing (TIf) created a very strong proposition for investors.

Edinburgh also continued to attract keen interest from hoteliers across the spectrum and meetings with five star hoteliers such as Jumeirah confirmed their desire to establish themselves in the city centre.

a variety of private and institutional funds approached us to discuss innovative financing of both public and private projects and further meetings have been arranged here in Edinburgh. other cities also recognise the lead Edinburgh is taking, as exemplified by Barcelona stating:

“for us, Edinburgh is considered the cultural capital of Europe. The atmosphere and history there is so distinct and unique, it cannot be emulated by anyone,” said Jordi adria, marketing and communication manager for 22@ Barcelona, the city’s innovation district. “But in particular, what we admire and watch closely is the way the city is working hard to turn its few weaknesses into strengths. Just how Edinburgh is bringing private and public together is very interesting to Barcelona and we hope to learn lessons for our own city.”

The city of Edinburgh council will now engage with the contacts made at mIpIm, working to convert interest into action.”

SHoWcaSING EDINBURGH aT mIpIm 2010

<fEaTURE

www.mipim.com

furtHer information

www.fdimagazine.comwww.investinedinburgh.come: [email protected]+44 (0) 131 529 6600

furtHer information

With three inter-linked teams – Investor Support, physical Development Support and Destination Edinburgh marketing alliance – 22 staff are focused on harnessing the maximum fDI potential from the city’s powerful international, diplomatic and business networks.

The council’s economic development plan (2009-2012), with its strengthened focus on inward investment and clear international perspective, was outlined within the submission, including plans to support £500 million of new private sector investment into the physical regeneration of Edinburgh by 2012. again, Edinburgh scored well, with judges awarding the city fourth place in the small city fDI promotional strategy category.

The results from the European cities and Regions of the future 2010/11 serve as an independent validation of Edinburgh’s world-class credentials, and reinforce that the promotion of opportunities on a global basis continues to be essential.

Not only has the city proven time and again that it is capable of packing a powerful economic punch, fDi magazine’s ranking demonstrates its ability to emerge from the turbulence of the recent recession in fighting fit condition.

There has never been a better time to capitalise on the investment opportunities, ambitious vision and unrivalled quality of life, which continue to set Edinburgh apart from the competition.

Top 10 Small EURopEaN cITIES

1 Edinburgh, Uk

2 Zurich, Switzerland

3 manchester, Uk

4 The Hague, The Netherlands

5 Utrecht, The Netherlands

6 lyon, france

7 antwerp, Belgium

8 malmö, Sweden

9 leeds, Uk

10 Bristol, Uk

The marché International des professionnels d’Immobilier (mIpIm) is the world’s premier real estate event.


In today’s global economy, one of the greatest risks to continued business success is the threat of stagnation. as recent times have shown, businesses

striving to innovate and invest in their future have discovered fundings barriers can often prove a major pitfall in bringing expansion plans to fruition. The credit crunch has exacerbated the lack of available funds, with the approval rate for applications for finance by high-growth firms in Scotland falling from 78.5% in 2007 to 43.9% in 2009.

There are, however, additional sources of funding available to businesses with the ambition to take forward projects that will support employment or innovation in Scotland.

for businesses with plans to create or secure jobs in Scotland, or those with a cutting-edge piece of research that will contribute to the development of a new product or service, alternative financial support may be available in the form of a grant from the Scottish Government to

help bridge the funding gap. Regional Selective assistance, Research

and Development Grants and SmaRT Grants are the three main forms of state financial assistance available to limited companies, partnerships and sole traders in Scotland. The schemes are administered by Scottish Enterprise, Scotland’s national enterprise, innovation and investment agency.

The maximum size of the grant that businesses can apply for depends upon whether they are classified as being small, medium-sized or large (see page 15), with smaller businesses being eligible for the highest levels of support.

Both businesses headquartered in Scotland and businesses based elsewhere can apply for a grant, providing they are undertaking an eligible project in Scotland that will support employment or innovation.

regional selective assistanceRegional Selective assistance (RSa) is the main source of state support for businesses

who wish to undertake projects that will create or safeguard jobs in Scotland, but are unable to proceed due to a funding gap. In the 2008/2009 financial year, businesses undertaking projects in Scotland accepted 88 offers of RSa collectively worth £52.1 million, enabling them to create or safeguard more than 5,000 jobs.

WHo caN apply?In Edinburgh, small and medium-sized enterprises with plans for a project that will either create permanent new jobs or safeguard existing jobs in Scotland are eligible to apply for RSa.

The project must involve at least some capital expenditure (such as the purchase of new commercial property, equipment or intellectual property) and must be unable to proceed without state support. The business undertaking the project should have a sound business plan that will see the project become financially viable within three years.

ScoTTISH BUSINESS GRaNTSIf your business is currently considering a new project in Scotland, a Scottish business grant

could provide the additional funding you need to take the project forward.

<aNalySIS


WHaT IS oN offER?Small businesses in Edinburgh can qualify for RSa worth up to 20% of the capital expenditure of their project, while medium-sized businesses can qualify for RSa worth up to 10%. The more jobs that are created or safeguarded by a project, the larger the grant a company is likely to be offered. Where projects involve limited capital expenditure, the RSa can alternatively be claimed against the projected salary costs of the first two years of the project.

researcH and development (r&d) grantsR&D Grants are the principle source of state financial support for enterprises in Scotland engaging in research and development that will help them develop new processes, products or services.

R&D Grants enhance the competitiveness of companies in Scotland by increasing their R&D capacity.

from 2004 to 2009, Scottish Enterprise awarded £55 million of R&D Grants, creating and safeguarding more than 1,300 jobs.

WHo caN apply?In Edinburgh, small, medium-sized and large enterprises are eligible to apply for R&D Grants.

The research should be socially and environmentally responsible and must be unable to proceed without support from the state.

WHaT IS oN offER?Small and medium-sized enterprises can apply for an R&D Grant worth up to 35% of the costs of a project costing up to £40,000 or 25% of the costs of a project costing over £40,000. large enterprises can apply for an R&D Grant worth up to 25% of the costs of the project.

projects that create or sustain R&D jobs in Scotland are more likely to qualify for an R&D Grant, and applications for grants of £40,000 or more must have a positive impact on R&D jobs in Scotland.

smart grantsSmaRT Grants are the main source of state support for businesses in Scotland undertaking highly-innovative projects that represent a major technological advance for the industry sector as a whole.

WHo caN apply?In Edinburgh, small and medium-sized enterprises could be eligible for a SmaRT Grant.

The project must be socially and environmentally responsible and represent a significant technological innovation, contributing to the development of a new, commercially viable, product or service.

The applicant business must be unable to undertake the project without backing from the state.

WHaT IS oN offER?Business can apply for a SmaRT Grant to help meet the costs of a feasibility study to determine whether the development

of a proposed new product or process is technologically and commercially viable.

The SmaRT Grant can be worth up to 75% of the costs of the study, to a maximum of £70,000. feasibility studies should last between six and eighteen months.

Businesses can also apply for a SmaRT Grant to support the costs of research and development projects lasting between six months and three years that culminate in the creation of a pre-production prototype of the product or process being developed.

The SmaRT Grant can be worth up to 35% of the costs of the project, to a maximum of £600,000.

Those businesses awarded a SmaRT Grant are entitled to a free market Research and Business Review Report to help them successfully commercialise the new technology or process.

HoW To apply foR a GRaNTBusiness grants are awarded on a discretionary basis by Scottish Enterprise, the economic development agency for Scotland.

Scottish Enterprise will scrutinise the business and technical aspects of projects applying for grant assistance, bringing in expert advisers where necessary.

The size of the grant will be based upon the contribution the project will make to the Scottish economy (including the number of jobs the project will create or safeguard) and the minimum sum required to enable the project to proceed.

If your business is currently considering an expansion in Scotland or an innovative new piece of research, a Scottish business grant could provide the additional funding you need to make the project a reality.

BUSINESS SIZE claSSIfIcaTIoN

employees

annual turnover

<£6.7m£6.7m to

£34.0m*>£34.0m

<50 Small medium large

50 to 249 medium medium large

>250 large large large

* Or an annual balance sheet total of between

£6.7m and £43.0m

WHaT IS oN offER foR BUSINESSES IN EDINBURGHregional selective

assistancer&d grants smart grants

What is it for?projects that will

create or safeguard

jobs in Scotland.

R&D projects

resulting in new

products or services.

R&D projects that

represent a significant

technological advance for

the sector.

What is on offer?

small20% of capital

expenditure or

salary costs.

35% of the costs of

projects costing up

to £40,000.

25% of the costs

of projects costing

over £40,000.

75% of feasibility study

costs (up to a maximum

of £70,000).

35% of pre-production

prototyping costs (up to a

maximum of £600,000).

medium10% of capital

expenditure or

salary costs.

large N/a 25% of project costs. N/a

for detailed information on eligibility criteria and to contact the appropriate advisory team within Scottish Enterprise about applying for a business grant, please visit www.scottishbusinessgrants.gov.uk

for more information on support available to new and existing investors in Edinburgh, please contact the Investor Support team of the city of Edinburgh council at + 44 (0) 131 529 6600 or [email protected]

furtHer information


edinburgH: Key indicators

1) population & HouseHolds

2004 latest source

population 453,670 471,650 1Households 209,094 217,654 1average household size 2.12 2.10 1population density (persons /km2) 1,730 1,788 1Natural change (births less deaths) 111 1,070 1Net in-migration 5,138 2,512 1% of population aged 16 to 64 69.6% 70.5% 1

2) labour marKet

3) WealtH & productivity

mean gross annual earnings (resident pop) £26,534 £33,536 6Gross Value added (GVa) (million) £12,686 £15,304 3GVa per capita (resident population) £28,019 £32,697 3Births of new enterprises 1,710 1,865 7 funds under management (all Scotland, £bn) £325 £580 8

4) travel & tourism

airport passengers (arr + dep in millions) 7.99 9.04 9 Rail passengers at Waverley station (millions) 14.22 19.60 10 Uk tourist bednights (millions) 6.1 (2005) 5.6 11 overseas tourist bednights (million) 7.1 (2005) 7.5 11Hotel room occupancy (lothians) 77.0% 73.0% 11Edinburgh’s world ranking for conferences 24 28 12

5) Housing & commercial property

owner-occupation (% of households) 70% 64% 13Housing completions 2,668 1,864 14average annual house price £166,207 £203,226 15Total number of house sales 14,893 6,933 15prime city centre office rentals (£/m2) £290.63 £307.00 16office floorspace take-up (m2 gross) 92,512 47,247 16city centre ‘zone a’ retail rentals (£/m2) £2,260 £2,260 16Retail potential Uk ranking 25 18 17

population aged 16+ in employment 228,800 250,500 2Economic activity rate (wkg age) 79.7% 80.5% 2Ilo unemployment rate (wkg age) 5.2% 5.4% 2 claimant unemployment rate 2.4% 3.6% 3Total employee jobs 312,773 304,518 3 long-term (>1 yr) as % of all unemployment 13.9% 12.9% 3

% of pop’n aged 16-64 educated to NVQ4+ 43.3% (2005) 45.1% 4Students in higher education institutions 62,220 74,055 5

1 General Register office for Scotland2 annual population Survey3 office for National Statistics4 annual population Survey5 Higher Education Statistics agency6 annual Survey of Hours and Earnings7 oNS Business Demography8 Scottish financial Enterprise9 civil aviation authority

10 office of Rail Regulation11 VisitScotland12 International congress and convention

association 13 Scottish Household Survey14 Scottish Government15 Registers of Scotland16 Ryden17 cacI Retail footprint

source notes

airport passenger arriv’s + depart’s (millions)

population

mean gross annual earnings (resident population)

average annual house price

% of pop’n aged 16-64 educated to NVQ4+

440,000

450,000

460,000

470,000

480,000

43.0%

44.0%

45.0%

46.0%

6.0

7.0

8.0

9.0

10.0

£24,000£26,000£28,000£30,000£32,000£34,000

£170,000

£180,000

£190,000

£200,000

£210,000

£220,000

<THE STaTISTIcS


year-on-year cHange in airport passenger numbers

% In

crea

se/d

ecre

ase

in p

asse

ng

er n

um

ber

s source: civil aviation authority. The months on the airport passenger graphs refer to the end of the three month rolling total period. The comparator cities figure is an average of year-on-year changes in passenger numbers at Birmingham, Bristol, cardiff, Gatwick, Heathrow, leeds, london city, luton, manchester, Newcastle and Stansted airports.

JobseeKer’s alloWance claimant count (%)

% w

ork

ing

ag

e p

op

ula

tio

n c

laim

ing

source: NomIS. The comparator cities figure is an average of Jobseeker’s allowance claimant counts in Birmingham, Bristol, cardiff, Glasgow, leeds, liverpool, manchester, Newcastle and Nottingham.

Edinburgh Scotland comparator cities

KnoWn large-scale foreign investments in edinburgH

Nu

mb

er o

f inv

estm

ents

Nu

mb

er o

f jo

bs

crea

ted

source: fDI markets.

Uk

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

feb 09 mar 09 apr 09 may 09 Jun 09 Jul 09 aug 09 Sep 09 oct 09 Nov 09 Dec 09 Jan 10

Edinburgh

comparator cities

0

1

2

3

4

5

0

200

180

160

140

120

100

80

60

40

20

mar 09 apr 09 may 09 Jun 09 Jul 09 aug 09 Sep 09 oct 09 Nov 09 Dec 09 Jan 10 feb 10

Investments

Jobs created

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

mar 09 apr 09 may 09 Jun 09 Jul 09 aug 09 Sep 09 oct 09 Nov 09 Dec 09 Jan 10 feb 10

<makING IT HappEN 14


EDINBURGH cITy cENTRE – a VISIoN foR SUccESSEdinburgh’s city centre is at the heart of the neoclassical New Town, a UNESco World

Heritage Site since 1995. The primary shopping and commercial district of Edinburgh,

it also features visitor attractions, hotels and residential properties.

Balancing the development of a thriving city centre against the need to safeguard the capital’s built heritage requires strong leadership. In recognition of this, the city of Edinburgh council has produced a framework that sets out a vision for the future of princes Street and the surrounding environs. The realisation of this vision is currently being driven by investment from a range of sectors, including retailers, property developers, hoteliers and the public sector.

pRINcES STREETDeramore properties has commenced work on a £40 million development at 121-123 princes Street featuring a 103-bedroom premier Inn and a New look department store.

The project represents the first hotel development on princes Street since the completion of the mount Royal in 1955. once complete in 2012, the new hotel will create 200 jobs.

Global fashion retailer primark has submitted plans for the redevelopment of a retail unit at 91-93 princes Street. The 6,500 m2 store – primark’s first in Edinburgh – will feature frontages on both princes Street and Rose Street, encouraging the circulation of shoppers between the two retail destinations.

The new store is expected to open in 2011, creating hundreds of jobs.

WaVERlEy STaTIoNWork continues on the £130 million upgrade of Waverley Station, with owner Network Rail awarding Balfour Beatty a £50 million contract to replace the 34,000m2 cloud glass roof with clear glass panels, allowing more natural sunlight into the building. other planned improvements include enhancements to the princes Street and market Street entrances and the demolition of vacant buildings on the concourse. The project is scheduled to be completed by 2013.

ST JamES QUaRTERHenderson Global Investors is preparing detailed design proposals for its £850 million redevelopment of the St James Quarter. The redevelopment will double the Quarter’s retail space and create new cafés, restaurants and leisure space. construction work will begin in early 2012, creating 7,000 jobs.

WaTERloo placEThe National Health Service and creative Scotland have taken space at the Waverley Gate office development at 2-4 Waterloo place, joining microsoft Uk, a tenant since 2008. The deal reflects a surge in interest in the building, with a number of companies currently in negotiations with agents.

Travelodge is to reinforce its position as the largest accommodation provider in Edinburgh with the opening of a

93-bedroom hotel in an existing ‘a’ listed building at 17-19 Waterloo place. currently being renovated, the hotel will create 30 new jobs when it opens this summer.

calToN HIllfollowing a European-wide tendering process, the city of Edinburgh council has selected Duddingston House properties to redevelop New parliament House, the former home of the Royal High School. The £35 million project will see the iconic ‘a’ listed building on calton Hill brought back into use as a boutique hotel that will also feature a restaurant, café and an art gallery open to the public.

THE fUTUREThe ongoing strong investment in the city centre reflects a renewed commitment to development by the city’s civic and business leaders. In partnership with key stakeholders, the city of Edinburgh council can deliver a world-class modern city centre that celebrates the best of Scotland’s built heritage.

furtHer information

contact: Stuart Seatone: [email protected]+44 (0) 131 529 2410www.edinburgh-inspiringcapital.com/invest/development_opportunities/city_centre.aspx

furtHer information

www.tasteofedinburgh.co.uk

<aDDEDExTRaS


a TaSTE of EDINBURGH

The passion for locally-sourced ingredients is evident in every professional kitchen.

Scotland’s fertile soil and rich coastal waters provide an abundance of mouth-watering meat, game, seafood and local fruit and vegetables – all nurtured to inspire its demanding local chefs, who are raising Edinburgh’s standards of cuisine to compete with the best in the world.

The range of talent means there is something here to satisfy the most demanding diner. from the Uk’s finest Italian restaurant to its second-best chinese restaurant, there are abundant options to tempt you – even if the city’s five, (yes five) michelin starred restaurants fall outside your price range.

Edinburgh delights in celebrating this rich variety in cuisine; french bistros jostle Spanish tapas bars; mexican cantinas serenade Italian trattorias and restaurants dedicated to the cuisines of Brazil, Belgium, Russia, Greece, the middle East, Thailand, malaysia, china and Japan all vie for your attention.

Hardly surprising then that the capital

indulges its passion for food each year, playing host to The Taste of Edinburgh, an event that celebrates not only how wonderful Scottish produce is, but also how to put this rich diversity of ingredients to use! The 2009 festival attracted tens of thousands of people to the city, to celebrate the best on offer from Scotland’s food and drink producers. This year’s event, to be to be held between 28-30 may at Inverleith park, should be equally popular. you can source the best of local produce at any time of the year, however, by visiting Edinburgh’s farmers’ market. This well-established forum regularly attracts more than 65 specialist producers. So, if you want ingredients as fresh as they can be, you’ll find it every Saturday on castle Terrace, from 9am – 2pm.

one of the city’s best-known chefs is martin Wishart. He opened his eponymous restaurant in 1999 and since then has won one michelin star, 4 aa rosettes and a score of 8/10 in the Good food Guide. In february, martin’s

eatery in leith added to this collection of awards – receiving the accolade ‘best fine dining restaurant’ in the 2010 Scottish Restaurant awards.

These awards acknowledge the outstanding creativity, customer service and top quality dining that is on offer throughout Scotland.

This success is set to continue in the future, with the Edinburgh New Town cookery School on Queen Street holding its first classes for aspiring chefs and sommeliers of the future last year.

and quality does not always come at a price. Edinburgh’s mother India restaurant narrowly beat the city’s central mosque kitchens – where meals are served on a paper plate and cost £4 – to the award for best Indian restaurant 2010.

Victory tastes sweet – especially for the capital’s fortunate diners, who remain spoilt for choice.

stop press: The International culinary Tourism association, in its first ever worldwide study, has declared Scotland has the right to promote itself as one of the most “unique, memorable and interesting” places for food and drink globally. particular praise was reserved for its agricultural and seafood produce, as well as its whiskies, soups, jams and cheeses.

BEST INDIaN RESTaURaNT IN ScoTlaND, ScoTTISH RESTaURaNT aWaRDS 2010: moTHER INDIa, EDINBURGHBEST ITalIaN RESTaURaNT, ScoTTISH RESTaURaNT aWaRDS 2009: BElla mBRIaNa, EDINBURGHBEST cHINESE RESTaURaNT IN ScoTlaND (2008) aND 2ND IN Uk: cHop cHop, EDINBURGHmIcHElIN-STaRRED RESTaURaNTS IN EDINBURGH (2010):• 21212 • ThEPLumEdhorsE • NumbEroNE,ThEbaLmoraL • ThEKiTchiN • rEsTauraNTmarTiNWisharT

you can get this document on tape, in Braille, large print and various computer formats if you ask us. please contact Interpretation and Translation Service (ITS) on 44 (0)131 242 8181 and quote reference number 00041/01. ITS can also give information on community language translations. you can get more copies of this document by calling kyle Drummond on 44 (0)131 529 4849 or emailing [email protected]

1 …is the capital of Scotland, home to the Scottish parliament, Scottish Government and over 50 foreign consulates.

2 …is home to six higher education institutes, including the University of Edinburgh, ranked the 20th best university in the world by The Times in 2009.

3 …has a skilled, productive population, with over 140,000 graduates of working age – more than 45% of the working age population.

4 …is regularly voted as offering the best quality of life of any city in the Uk.

5 …acts as a gateway to Scotland, receiving over two million domestic visitors and one million overseas visitors per annum spending close to £1 billion.

6 …is home to the corporate headquarters of more fTSE 100 businesses than any other Uk city bar london.

7 …has a rich cultural history, with numerous attractions (including Edinburgh castle and the National Galleries of Scotland) and UNESco World Heritage Site and city of literature status.

8 …is the world’s pre-eminent “festival city”, hosting a year-round programme of festivals with over four million attendees annually.

9 …has a resilient, diversified economy, with the lowest unemployment rate of any major Uk city.

10 …is well-connected, with Edinburgh airport handling over nine million passengers travelling to more than 100 destinations each year.

EDINBURGH...

invest edinburgh (april- june 2010)

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