Commercial Property News

National commercial property consultancy, Lambert Smith Hampton (LSH) has issued practical completion on Gladman Developments' new £14 million distribution centre at the Drum Industrial Estate in Chester-le-Street, County Durham.

Acting as Independent Surveyor, LSH's Newcastle office has been instrumental in driving the scheme towards the conclusion of the build programme, serving as an independent intermediary on behalf of Cheshire-based developer Gladman.

Fit out of the 271,000 sq ft unit, which was pre-let to supermarket giant, the Co-op in the region's largest industrial pre-let of the past 10 years, is at an advanced stage, with the Co-op taking occupancy in April.

Julian Smith, Head of Building Consultancy at LSH's Newcastle office, said: "This was a substantial development project which, despite having to overcome many challenges, was completed on time and within budget."

Simon Lovell, Partner at Gladman said: "We are delighted that this ground-breaking scheme has come to fruition, completing over 600,000 sq ft of industrial space at Drum. The success of the development is as a direct result of the expert team that has been involved with the project over the past two to three years."

The pension fund of Cameron Harris Design & Build Limited, has secured Dunfermline based AviIT Limited on a five year lease at £14.75 per Sqft for the ground floor of No. 2 George Square, Dunfermline.

AviIT Limited have for the past six years been providing advanced IT solutions to the aviation industry, with leading clients such as Virgin Atlantic and BMI.

Cameron Harris Design & Build have been responsible for the design and development of over ¼ million sqft of business accommodation in West Fife alone and are a market leader in the design and build of office and industrial buildings in East Central Scotland.

George Square is a development of four high quality office pavilions, providing accommodation from 1,250 Sqft to 5,000 Sqft which is available for lease or sale.

Existing occupiers are solicitors Young & Partners and software development company IT Works Ltd.

Town Centre Securities has strengthened the agency teams at two of their major Leeds city centre developments by instructing Savills and CB Richard Ellis to Whitehall Riverside and No.7 Whitehall Road respectively.

Whitehall Riverside and No.7 Whitehall Road occupy a prominent 6 acre, waterside site benefiting from the pleasant and convenient riverside walkway between the train station and the scheme. The masterplan for the whole site includes 540,000sq ft of Grade A sustainable offices, 400 apartments and associated retail and leisure space. Phase One of the masterplan saw the development of the exemplar 130,000sq ft No.1 Whitehall Riverside building which has been successfully let to high-profile tenants such as Grant Thornton, Cobbetts, Michael Page International and Bank of New York.

Savills are teaming up with existing agents Atisreal on Whitehall Riverside which has outline planning consent for a further 350,000sq ft of offices, including detailed consent for two buildings totalling over 200,000sq ft.

CB Richard Ellis will join Sanderson Weatherall on No.7 Whitehall which currently has detailed planning consent for 60,000sq ft of office accommodation. In line with Town Centre Securities' corporate commitment to environmental practice, sustainability will drive the development agenda ensuring the development of a unique urban environment on the waterfront.

Associate Director at Town Centre Securities, Richard Dunn, says; "These new instructions signify our commitment to developing this major City centre scheme at the gateway to the West End district. We have established relationships with the agency teams at both CBRE and Savills and are confident that their fresh input, along with their national and International reach, will be an invaluable asset to the Whitehall projects."

Director of Office Agency for CB Richard Ellis, Jonathan Shires, continues;" Whitehall Riverside is widely regarded as the best office scheme in the City centre. The completion of the first building set a benchmark in Leeds and firmly established The West End as the new heart of the commercial and financial district. The scheme's proximity to both the city's retail and leisure district and the train station make the waterfront location an ideal place to do business."

Construction and support services company Carillion's £80M The Square mixed use development in Sheffield has been awarded a National Considerate Constructors Award to recognise the site's excellent standards of consideration towards its workforce, neighbours and the environment.

The scheme was announced as a Silver award winner at a presentation held in Manchester in this month, one of nine ceremonies being held in Manchester, London and Edinburgh throughout March and April. Considerate Constructors Scheme Annual National Awards are given to around the highest scoring 71/2% of over 7,000 eligible sites which have been completed in the previous year.

Each scheme underwent an in-depth assessment and The Square achieved the highest possible rating in areas such as 'environment', 'a good neighbour' and 'safety', placing it in the highest overall category of 'an exceptionally good site'. The assessors' notes stated that 'The Square is an excellent example of a considerate site. The company is proactive in all areas of the Considerate Constructors Scheme, particularly in respect of the environment. The project team has in place exceptional initiatives in the Good Neighbour and Safe categories.'

Commenting on the Awards, the Considerate Constructors Scheme's Chairman, Norman Reed, said: "In an economic climate in which our industry faces numerous challenges, it is a pleasure to be able to recognise and reward the outstanding achievements of this year's Award winning sites. As standards of considerate site practice continue to rise, I am delighted to report that 2009 will see a new record in the number of Awards being presented."

Development Director for Carillion, Neil McMillan, said; "This accolade is testament to the hard work and commitment of everyone involved in bringing this exciting scheme to life. We are firmly committed to considerate construction and are delighted to have scored so highly during the assessments. The Square is undoubtedly a transformational scheme and we will employ this high level of commitment to the future stages of development at the Castlegate site."

Acting on behalf of the landlord, Ryden has secured a new tenant for 20 St Mary's Street in the heart of Edinburgh's Old Town. Neil Doig, a 22-year old entrepreneur from Edinburgh, has taken the 805 sq ft retail unit on a 9-year full repairing and insuring lease at £12,000 per annum with one month rent free.

Neil Doig, with support from the Princes Youth Business Trust and Business Gateway, is launching his first retail venture, State of Mind; a streetwear, sneaker and urban lifestyle boutique with brands from New York, Tokyo & London. The shop opens on 1st April.

William Biggart, of letting agents Ryden, said: "We received a good level of interest in the space and have achieved a good deal for our client in the current economic climate." He added: "State of Mind is a great addition to St Mary's Street as it adds a new element to the current retail offering."

Neil Doig was represented by Scott Surveyors in the deal.

Work has started on the third phase of development at the National Aviation Academy in Doncaster.

Designed by Race Cottam Associates, the project at Robin Hood Airport Doncaster Sheffield will convert an existing hangar into a new corporate aviation finishing centre.

When operational, the building will utilise 4D sophisticated technology to assist in designing the exterior livery and interiors of corporate aircraft.

Working with project managers RLB and contractors Henry Boot, the new facility is expected to be complete by April. The project is being funded by Yorkshire Forward, the Regional Development Agency for Yorkshire and the Humber.

Race Cottam regional director Mark Barker, said: "This is now our third project at the airport and we are very excited to be involved with another project for Directions."

A Race Cottam designed training academy opened in 2007, which enables students to undertake aviation training using the most up to date equipment, in skills ranging from cabin crew training through to aircraft maintenance

Acting on behalf of the landlord, One Unit LLP, King Sturge has secured a new tenant at 59 Charles Street, in the Royston area of Glasgow.

Care home provider, Pacific Care Ltd has agreed a new five-year lease on suite one, which extends to 1,200 sq ft, plus generous car parking, at an annual rental of £12,000 (£10 per sq ft). The company is relocating its office base from Bath Street and will use the space for administrative purposes. Pacific Care Ltd was founded in 1998 and currently manages three care homes, a day care centre and nursing home on the outskirts of Glasgow.

Brendan Brawley, Managing Director of Pacific Care commented: "We were keen to move out of the city centre to ease parking issues. Our new office offers excellent parking for staff and visitors, as well as easy motorway access".

David Cobban of agent King Sturge added: "This office has been refurbished to a very high standard and is ideal for Pacific Care. As well as the excellent lease terms, the property enjoys excellent motorway access and secure onsite car parking."

Two office suites remain available at the two-storey property, ranging from 1,126 sq ft to 2,700 sq ft - the flexible open floor plates may allow sub-division into smaller suites or both suites can be let as a single larger office of 3,826 sq ft. There are three entrances from the car park which allow tenants to create a self-contained environment. The landlord has completely refurbished the offices and is offering competitive, cost-effective and flexible lease terms.

King Sturge and Graham & Sibbald are joint-agents on this property. Pacific Care Ltd was self-represented.

The firm of architects behind the refurbishment of Clarendon House has taken up residence in the landmark building it played a key role in transforming.

Seven Architecture is now based in a suite on the first floor of the building in Harrogate town centre and joint letting agents Carter Jonas and Savills have also successfully let units to Raworths Solicitors, Hill Cannon and Up & Running.

In addition messrs Bramall & Ogden have also let a suite on the first floor, completing the letting of this part of the building while one of the retail units on the ground floor fronting on to Victoria Avenue has been let to Paca as a cafe/private clinic.

Martin Wood of Seven Architecture commented: "We have been involved in this refurbishment from the outset and therefore fully appreciate the quality of the office space provided notwithstanding its prominent town centre position. Despite the economic climate the Seven Architecture business has continued to expand and Clarendon House provided the obvious solution to our space needs."

John Webster of letting agents, Carter Jonas, commented: "The success of recent lettings leaves only the fourth floor of 5,500 sq ft and part of the third floor available as offices. We are close to letting part of this space - on the ground floor there is strong interest in the retail units fronting Station Parade but nothing is signed as yet."

Fashion clothing retailer White Stuff is to open its fourth Scottish store, situated in Aberdeen.

The fashion and lifestyle specialist has taken over the lease of a 1400 sq ft ground floor unit at 22 Back Wynd on a 10 year lease with an annual rental of £28,000.

White Stuff was started more than 20 years ago when hard up college friends Sean Thomas and George Treves sold t-shirts to skiers as a means of raising funds to stay in the French Alps. The company is now one of the UK's most successful clothing and lifestyle brands and has 56 UK stores.

The previous tenant, CLC Bookshops, has relocated to new premises on John Street. Leading Aberdeen commercial property consultants, FG Burnett acted for CLC in the disposal of its existing lease.

FG Burnett surveyor, Kevin Jackson, said: "White Stuff's move in to Aberdeen is a confidence boost for the city's retail sector and demonstrates that, beyond the challenging retail climate nationally, deals in Aberdeen are still being done. The addition of White Stuff further strengthens the Back Wynd location which already benefits from other high quality occupiers."

Following on from the recent hat-trick of deals completed by Graham + Sibbald's Commercial Team Glasgow, they have now concluded a further development sale and office letting.

Acting on behalf of Bank of Scotland, Graham + Sibbald have disposed of a small development opportunity on the south side. Ideally suited for development as a studio flat or office, the 474 sq ft property is located in the tenement building above the HBoS branch at Govan Cross. The subjects were offered with vacant possession and purchased by a private party for £20,000.

Further proof that the Park Area still holds attraction for office occupiers was confirmed by the letting of lower ground office space at 29 Park Circus. Traffic Design Consultants Ltd entered into a new lease five year FRI lease of the 1,075 sq ft suite at a rental of £9,700 per annum. Graham + Sibbald represented the landlord with Traffic representing themselves.

Commenting on the transactions, Neil Heatherwick, Trainee Surveyor with the Glasgow Agency Team said: "Whilst the market continues to be difficult, we are delighted and encouraged that interest in both properties was identified relatively quickly resulting in satisfactory outcomes in both instances."

Town Centre Securities, advised by Savills the international real estate advisor, has let two units at the Merrion Shopping Centre, Leeds to Toni Manning and The Abundant Life Church respectively.

Toni Manning, who will trade as WOW Hair & Beauty, has agreed a 10-year lease at 17 Merrion Way, which totals 1,069 sq ft (99 sq m), and will pay an annual rent of £16,000.

The Abundant Life Church has agreed a 10-year lease on 13a Merrion Way, which totals 8,981 sq ft (834 sq m), and will pay an annual rent of £28,600.

Stephen Henderson, associate director at Savills, says: "With its central location and strong tenant base, the Merrion Shopping Centre has proved to be a very successful scheme, which continues to attract a diverse combination of retailers, businesses, restaurants and leisure operators."

Both tenants were unrepresented.

Scottish Widows Investment Partnership, represented by Edgerley Simpson Howe& Partners, has agreed a new lease with Aldi for its retail premises at Trafford Retail Park, near Redditch town centre.

The store, which totals 15,715 sq ft is in the process of being extended and is due to be completed at the end of this month. Aldi has taken a new 15 year lease at a rent of £17.00 per sq ft.

The remainder of the retail park is fully let to value brands including Iceland, Instore, Pets at Home, Blockbuster and KFC.

Rae & Company acted on behalf of Aldi.

Alliance Trust plc has let the third floor at 107 George Street, Edinburgh to Project Management Partnership.

The suite extends to 1,328 sq ft (123.37 sq m) of office space on the 3rd floor and has been let for 5 years at a rental of £35,000 per annum.

Neil Gordon, Director of Eric Young &Co;, said "PMP took occupation of this suite before the paint was even dry on our client's refurbishment. This reflects the continuing strong demand for small open plan suites which are rarely available in such a prime location".

Alliance Trust plc was represented by Eric Young & Co.

Scottish Enterprise and Scottish Development International will this week lead a delegation of public and private sector partners to MIPIM 2009 - the world's largest real estate exhibition, held annually in Cannes.

During the event, which runs from 10-13 March, Team Scotland will host a number of events focusing on Scottish infrastructure issues ranging from the development of Dundee Waterfront, to hotel and resort investment, building opportunities in the economic downturn and urban regeneration.

The leaders of Glasgow and Edinburgh city councils will also take part in a "Mayors' Think Tank" which will involve 50-60 international mayors and political leaders exchanging ideas and discussing new urban challenges.

The purpose of the Team Scotland delegation is to raise awareness of Scotland's key infrastructure projects, assets and resources. Among the initiatives to be showcased are Glasgow's Digital Media Quarter, Irvine Bay Urban Regeneration Company, Edinburgh BioQuarter and Energetica in Aberdeen.

Stephen Gallagher, director of business infrastructure at Scottish Enterprise, said:

"Clearly the whole property industry is experiencing a difficult time at the moment, but we need to make sure we do not lose momentum in the development of some of our key projects, which have the potential to make a lasting difference to Scotland's economy.

"We've got a fantastic schedule of events lined up at MIPIM next week to make sure we're taking every opportunity to raise the profile of key infrastructure projects such as Energetica, Edinburgh BioQuarter and Glasgow's Digital Media Quarter on the international property scene.

"In doing so, we hope to attract new partners and inward investment for infrastructure projects which will contribute to the growth of Scotland's economy."

Ken Ross, chairman of the Scottish Property Federation, added: "This delegation represents an investment in the future, something which is particularly important in the current climate, when networking and identifying opportunities between the private and public sector are essential for our continued sustainability here in Scotland."

A company dedicated to getting Sheffield people back into work has taken the first letting in the city's most contemporary office space.

The Centre for Full Employment (CFFE) has secured a flexible lease on a ground floor, self contained unit in Metis - the prestigious mixed use development on the junction of Scotland Street and West Bar Green on the site of the former Sheffield college.

The not-for-profit organisation, which offers a free and unique service to local community residents, businesses and organisations in Sheffield, is the first company to take advantage of the state of the art offices based in the heart of the city's central business district with a 2,231 sq ft letting.

CFFE will use their new base to help reduce unemployment in the city by improving opportunities for people from the most disadvantaged communities and also by helping organisations and businesses in the city by supporting them with their recruitment needs.

The Metis development, which incorporates both business and residential space, has become a landmark building in Sheffield because of its exceptional location and stylish design.

The development comprises 118 luxury apartment and penthouses, a private 124 space multi storey car park, and distinctive self contained offices with a net internal floor area totalling 19,731 sq.ft within five units.

Rebecca Schofield, agency and development associate at Knight Frank's Sheffield office, said: "These offices fulfil all the criteria for a modern business unit. Not only are they centrally located but have been finished to a high specification and are available on flexible leases."

Joint letting agent for the development is commercial specialist Campbell & Company.

Sheffield architects are celebrating after breaking into Yorkshire's top ten architects for the first time.

Race Cottam Associates have been ranked number ten in the annual Yorkshire's Top Architects survey.

The placing caps a successful year for the practice, after delivering major developments across the UK in a number of sectors, including nationally significant health, education and environmental projects.

David Cottam, managing director at Race Cottam, said: "Our entry into the top ten architects in Yorkshire is a great reflection of the level of projects we have been involved in over recent years.

"After starting out as a small firm in 1993, we have grown to deliver prestigious projects on a national basis. We pride ourselves on delivering projects from conception, through to planning and completion, across a wide range of fields, including health, environment and education."

Race Cottam has a growing reputation for delivering high quality educational projects, following the recent completion of Sinfin Community School in Derby and Edlington School in Doncaster and the ongoing work to deliver four schools as part of the Bradford Building Schools for the Future programme.

The practice has worked with Kier Health and the Barnsley Primary Care Trust to design the new £11 million Kendray acute mental health unit, the Oakwell Centre, delivered through the Government's Procure 21 framework. This sits alongside other significant Procure 21 work the practice has completed with BAM Construction Ltd at the Northern General Hospital in Sheffield.

Environmental projects, including a £600 million waste management scheme in Reading, have enhanced Race Cottam's reputation further and helped secure their place in the list.

David added: "Our reputation has stemmed from the dedication, hard work and loyalty of the quality design team at the practice and we are working to continually expand our portfolio of developments across the country."

The Top Architects List 2009 was compiled by the Faculty of Business and Law at Leeds Metropolitan University.

Glasgow's International Financial Services District (IFSD) remains on course to achieve all of its targets by 2011, according to the results of an independent economic study.

The study, by economic consultants, EKOS Limited, confirms that, since its launch in 2001, the net number of new jobs located in the IFSD is 15,150.

And, in another sign of the economic regeneration of the area, the study confirms that 1.25 million sq ft of new Grade A offices has been completed in the IFSD since 2001, with a further 823,000 sq ft of Grade A space currently under construction, due for completion by the end of 2009.

Figures compiled separately by Scottish Enterprise and Glasgow City Council, the main public sector partners behind the IFSD, confirm that the IFSD has attracted just over one billion pounds of investment in the past seven and a half years, making it one of the largest economic regeneration projects in the UK.

Both partners have acknowledged that, while the market is currently very difficult, they have no intention of changing the IFSD's ambitious targets to attract 20,000 new jobs and develop two million sq ft of Grade A office space by 2011. The partners believe that those developments already underway and in the pipeline will maintain forward momentum and while it could take slightly longer than anticipated, they remain committed to a range of initiatives that will achieve the IFSD's original objectives.

Jim Watson, Senior Director, Financial Services, Scottish Enterprise, commented, "The IFSD is not dependant on one or two areas of the financial services industry. It has attracted a wide cross-section of financial industries and functions and many of these, such as general insurance, are less cyclical and better placed to withstand the current situation.

"Many of the major financial institutions are taking the opportunity to review their operations in the UK. The outcome is often consolidation of operating centres or possibly outsourcing. With its skilled labour pool and competitively priced operating costs, Glasgow is well placed to benefit from this trend."

Councillor Steven Purcell, the Leader of Glasgow City Council, said, "It would be difficult to argue that Glasgow will remain immune to the difficulties being faced globally in the financial services sector but equally, we believe it is reasonable to say that Glasgow is well placed to withstand the rigours of the current economic circumstances. In addition, the city is in a strong position to benefit from the eventual upturn in the sector's fortunes given the broad spread of financial services provided in Glasgow. It is also important to stress that the IFSD is a long term project and the commitment is there to see it through and realise the aspirations set out in 2001."

As part of the new employment figures, the EKOS study also identified 31 leisure and retail companies which have moved in to the IFSD, creating 1,030 new jobs. This, together with the completion of almost 700 new residential units and the development of nearly 1000 new hotel bed spaces since 2001, reflects the District's aim to become more than an 'office district' by creating a 24/7 community.

Among the highlights of the past 12 months are;

In February 2009, Esure confirms plans to recruit 500 new jobs in the IFSD.
BNP Paribas confirms go ahead in Jan 2009 for next recruitment phase - 80 new jobs.
In January 2009, Macroberts confirms move to Capella building in the IFSD
HSBC confirms in October 2008 new space at 141 Bothwell St.
Major European bank, Fortis takes three floors at 133 Finnieston St. office development.
Plans announced in October 2008 for the super de-luxe 5 star Jumeirah Hotel in Argyle St.
The IFSD wins the UK Award for Best Public Private Partnership from the Association for Public Sector Excellence in September 2008.
Scottish Friendly wins major outsourcing deal with Norwich Union in August 2008.
Barclays open a new retail branch in the IFSD in July 2008.
Glasgow hosts two of the UK's biggest financial conferences, the National Association of Pension Funds in June and the British Insurance Brokers Association in May 2008.
The Cuprum office development in Argyle Street is topped out in April 2008.
IFSD launches new web site www.ifsdglasgow.com in Feb 2008.
Accountants BDO Stoy Hayward open new offices in the IFSD in Jan 2008

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South Yorkshire based The Horbury Group has successfully clinched two major contracts worth more than £7 million.

Horbury Building Systems, part of the Rotherham construction specialist, has been appointed to work on the MCD Development Horizon and Eclipse project in Bristol - a contract worth £5.7 million.

While Wates Retail has appointed Titan Ceilings Ltd to work on the new 280,000 square foot John Lewis store in Cardiff, in a contract worth £1.7 million.

Trevor Wragg, managing director of The Horbury Group, said: "The developments will play a huge part in the transformation of Cardiff and Bristol city centres, so we are thrilled to be a part of these two major regeneration projects.

"Winning contracts like these demonstrate how we are continuing to grow as a company and be involved in crucial development projects on a national level in major cities."

Horbury Building Systems will carry out work including partitions, dry lining, joinery, soft flooring, kitchens and tiling and decorating on the Horizon and Eclipse projects.

Eclipse, a 17 story tower next to the Horizon project will offer unrivalled views of across the city and parkland and is located above the Harvey Nichols flagship store.

The development scheme sits within Cabot Circus, a £500 million regeneration program in the heart of Bristol city centre, which boasts designer stores, restaurants and a cinema.

Titan Ceilings will install suspended ceilings and partitions at the John Lewis store in Cardiff, which is due to open in autumn 2009. It is part of the St David's 2 development, a mixed-use, retail-led development which represents a £675 million investment for Cardiff city centre. The project is being developed by St David's Partnership, a joint venture between Land Securities and Capital Shopping Centres.

The Horbury Group recently announced a dedicated move into the public sector, winning major school and hospital contracts across the UK, to compliment its existing portfolio of private sector clients throughout the country.

Town Centre Securities' multi million pound transformation of their unique, sustainable Town Centre House redevelopment is now complete, marking the launch of the first phase of the refurbishment of the Merrion Centre in Leeds.

The 40 year old landmark building has undergone an intensive 18 month refurbishment and extension programme to create a striking Yorkshire sandstone façade, an additional 6th floor with panoramic city views, retail extension and 33,523sq ft of prime, sustainable office accommodation with ample parking within the heart of the city. The development was one of the city's first refurbished buildings to be awarded the coveted BREEAM Excellent rating and forms part of Town Centre Securities' ten year masterplan for the Merrion Centre scheme above which it resides.

Town Centre Securities will reoccupy one and a half floors within the development and construction management consultants, Gleeds, has taken the entire 6,500sq ft second floor for their 45-strong Leeds team. 20,000sq ft of flexible office space ranging from 1,800sq ft upwards, and including the new 6th floor, is now available and the developer believes that the scheme's unique offering will prove to be an attractive proposition for environmentally and energy conscious occupiers.

The refurbishment incorporates on-site monitoring of waste management, energy and water consumption; full-height glazing and floor plates to maximise natural light; a heating and cooling system, including heat recovery; low-energy design and technologies such as variable speed pumps and automatic lighting control.

There is also a partly bio-diverse roof to enhance the site's ecology and cut heat loss as well as the use of local, natural products. Co2 emissions are forecast to be reduced by more than 70 per cent and create lower running costs.

Property Director for Town Centre Securities, Richard Lewis, says; "We believe that we have created a unique product within Leeds City Centre. Town Centre House's combination of sustainability, quality and value is unrivalled, as is the flexibility we can offer to occupiers.

"As a developer, we are continually seeking ways to ensure environmental practice and appreciate that sustainability and energy consumption is becoming increasingly important. The refurbishment of Town Centre House has significantly reduced the building's operating costs and will subsequently contribute to reductions in its carbon footprint. This, combined with the high quality of refurbishment and extremely flexible packages we can create for tenants, makes it an ideal location for a range of environmentally-conscious companies."

A funding package for Dundee Waterfront was completed last week with the confirmation that Scottish Enterprise will invest over £33 million to match the amount committed by Dundee City Council.

The £70 million partnership project aims to transform the Tayside economy by creating a new central business district which will secure existing and attract new high value service sector jobs.

The business district will also help to transform the image and perception of the city, making it easier to attract and keep the highly skilled people required to grow the life sciences, games, financial services sectors and universities in the region.

The project is expected to create at least 1,000 jobs over 10 years, generate more than £500 million GVA for Scotland's economy and generate an additional £270 million of private sector investment in the project. Work will begin in the next few weeks.

In Dundee Finance and Sustainable Growth Secretary John Swinney said: "The Dundee Waterfront Project is an important signal of a bright future for the city, the region and for Scotland.

"This is a significant investment in a major project that will bring massive economic benefits both for Dundee and the wider Scottish economy.

"The project will generate work, create jobs and keep the local economy moving - crucial in the current economic climate. It will play a crucial part in the Scottish Government's economic recovery programme - designed to help businesses and households through the current difficulties.

"And it will deliver a lasting legacy for future generations, supporting our long term aim of making Scotland a more successful country through increased sustainable economic growth."

Jim McFarlane, Managing Director Operations of Scottish Enterprise, added: "This project offers the opportunity to accelerate the restructuring of the Tayside economy. Creating a high quality business district at the Waterfront will help support the growth of indigenous business and attract new inward investors to the city.

"In the current economic climate this investment is a statement of confidence in the opportunities in this region and will help to boost its existing world class strengths in industries such as financial services, life sciences and digital media.

"The overall effect of the Dundee Waterfront project will be to reinvent Dundee as an ideal destination to live, work, visit and invest in, allowing the city to attract and retain a highly skilled workforce which is essential to the region's company base and universities."

Leader of Dundee City Council Kevin Keenan said: "The next phase has taken a considerable amount of work behind the scenes to get funding in place from Scottish Enterprise and the Scottish Government, the approval of the Tay Road Bridge Joint Board for key elements of the plan and coordination for the trunk roads network from BEAR Scotland.

"Some of the activity that has been done up to now on the waterfront itself has also been largely invisible to the public, particularly the strengthening of the Dock Street rail tunnel, but with this third phase of work now ready that will all change, and the immense transformation we have planned and discussed for so long will soon start to become more obvious."

Acting on behalf of the landlord, Melville Street Developments, Ryden has secured two new tenants in quick succession at 35 Melville Street, Edinburgh.

Highland & Universal Securities Ltd has taken the first floor, extending 1,035 sq ft, on a flexible 5-year lease with a 3-year break option, whilst the 911 sq ft second floor office suite has been let to Voluntary Health Scotland, again on a flexible 5-year lease with a 3-year break option.

The ground, first and second floors within the main office building along with the rear mews building became vacant in October 2008. The vacant space was subsequently refurbished, with the works just completing prior to these lettings.

Iain Taylor, Senior Surveyor at Ryden, said: "The ability of our client to act swiftly after the building became vacant with a good quality refurbishment, coupled with a flexible approach to re-letting the vacant accommodation, has enabled us to secure two occupiers within a matter of days of the completion of the refurbishment works."

He added: "With the rear Mews also under offer, we now only have the 750 sq ft ground floor suite remaining, which is available at a quoting rental of £18.50 per sq ft, and interest levels are encouraging, despite the challenging climate."

Ryden represented Melville Street Developments Ltd jointly with Edinburgh Commercial Property. Montagu Evans acted for Highland & Universal Securities and Voluntary Health Scotland was self-represented.

The entire ground floor of a £5.5 million office development on the site of a former Rotherham school has been taken up by companies specialising in education and training.

Aside from one unit, the 3,000 sq ft ground level of South Grove House, built and owned by The Horbury Group in the Moorgate area, has been let by property consultancy Knight Frank to A4E, a private sector company providing education, training and employment.

The final unit has been let to South Yorkshire's first state-of-the-art indoor golf training centre, South Grove Golf Academy.

Tim Bottrill, agency and development partner at Knight Frank's Sheffield office, said: "It is no surprise that these units have been let so quickly. The building fulfils all the criteria for a modern office block and we had no trouble finding suitable clients for the premises."

The development, designed by Sheffield based Race Cottam Associates, has become a landmark because of its exceptionally stylish yet sustainable green design, which has also received a BREEAM rating of good.

Trevor Wragg, managing director of The Horbury Group, said: "South Grove House is some of the finest office space available in South Yorkshire and we're delighted that A4E and South Grove Golf Academy have decided to take up tenancy at the development.

"It's testament to the quality of the space and the class of the aesthetic that we've attracted such diverse occupiers. We hope that both businesses enjoy many successful years here."

The Moorgate site was originally occupied by South Grove Secondary School, which was demolished in 2004, and now houses the prestigious office complex.

Acting on behalf of the Vitale Group Limited, Beresford Adams Commercial recently disposed of ground floor offices.

The suite was predominantly open plan with some private offices extending to approximately 130.06 sq m (1400 sq ft) and included up to 10 car parking spaces.

A new five year lease has been agreed at an initial rental of £12,500 pax rising to £15,000 pax during the term and has been let to TOPCON (Great Britain) Limited.