17 Apr 2024
By Richard Muir, Deputy Chief Executive of Glasgow Chamber of Commerce
A revamped new City Centre Task Force began its work last week with our CEO, Stuart Patrick co-chairing and harnessing the taskforce’s renewed sense of purpose and clear focus on delivery to support the new City Centre Strategy to 2030.
While there is much work to be done more broadly, there is certainly more than a few positive developments. Indeed, a crane count is perhaps a rather crude assessment of investment levels, but certainly it is a demonstration of the scale of activity in our city.
Perhaps another indication of positive sentiment is new research from Lismore Real Estate Advisors, which has shown that 89% of investors expect to see opportunities in Glasgow city centre increase over the next year.
Property companies are described as the most ‘bullish’, with over 90% forecasting a year of opportunity, while funds are unsurprisingly more cautious. Lismore reported that investor feedback underscores Glasgow’s attractiveness due to its favourable yield gap compared to other key regional cities and ‘robust fundamentals’ across various sectors, including an under supply of Purpose Build Student Accommodation, a strong prime retail market and in the office sector, a low availability of Grade A space.
A good example of ambitious investment being realised, is the eye-catching Social Hub at Candleriggs Square. This week, I’ll be hosting our regular Glasgow Talks event, sponsored by the University of Glasgow Adam Smith Business School, at the Social Hub and will be using the opportunity to look at the contribution of our innovation districts and city ecosystem. I’ve been keenly watching the site taking shape since construction began in September 2021 and it’s great to see it open its doors, becoming the brand’s first location in the UK.
As this hybrid hospitality concept continues to expand across Europe, The Social Hub Glasgow will welcome guests to the brand new £90m development. Creating more than 80 new roles for the city, Glasgow represents the 18th hub to open for the Amsterdam-based company, which was founded in 2012 by Scottish born entrepreneur Charlie MacGregor.
However, Social Hub is just one of a total £300 million worth of projects which will bring the transformation of one of the city’s most prominent development sites. The hotel forms the first development phase of the much-anticipated regeneration of the 3.6-acre Candleriggs Square site in a joint venture between Drum Property Group and Stamford Property Investments.
Another major planning application has been submitted for a £250m revamp of Charing Cross in the centre of Glasgow. Plans for the Charing Cross Gateway regeneration project are split into two phases – the first containing student accommodation and a healthcare/GP surgery facility. Phase two includes a mixed-tenure development of residential city living, state of the art office space and a hotel. Removal of the Tay House bridge over the M8 also forms part of the plans to create a striking new gateway into the city centre.
The city’s three main universities have confirmed a strategic aim to grow their student numbers in the years ahead and accommodation must expand in line with that, especially when we consider how limited the options are at the moment. A development like this caters for that need while plugging into ongoing plans to transform a key part of the city’s traditional retail and hospitality artery. This application presents an opportunity to galvanise an iconic area of the city and re-establish it as a dynamic accommodation and business hub.
Meanwhile, Forrest Hotels, owners of the multi-award-winning Radisson Red hotel on Glasgow’s Clydeside, is seeking planning permission to restore and transform its neighbouring North Rotunda, into a world-class new entertainment hub and events venue. The hotel bought the Rotunda building and its grounds back in June 2023, marking the start of a new chapter for the historic structure.
The North Rotunda is a prominent building on the waterfront that lends itself to being a standout destination in the city and we are pleased to see these carefully considered proposals come forward. The SEC Campus is just a stone’s throw away and as we know, this wider area has enormous potential for further regeneration and economic activity. This will create much-needed new jobs and this investment will further enhance our reputation as a leading city for events and entertainment.
Love Loan which is located just off George Square, is close to completion and buildings have been restored and reimagined around a newly constructed lane and planned specifically with Glasgow’s renowned hospitality and social scene in mind. The new stylish AC by Marriott and the popular Flight Club are open and contemporary, state-of-the-art serviced apartments and studios are moving into the development by Chris Stewart Group. And of course, JP Morgan will soon launch its brand-new office on Argyll Street, housing 2700 highly skilled staff.
Glasgow City Centre has received a lot of criticism of late and whilst some of it has been fair, if you raise your head and see the cranes finishing or beginning their jobs you begin to see that there is a new phase of our city centre emerging. It may be different from the centre we once knew, but that does not mean it is any less vital to our economy and for the businesses that operate across Glasgow. It is essential that we continue to encourage the pipeline of private sector development proposals and turn visions into reality.
