The Elite Ayrshire Business Circle

Friday, 17 February 2012

CKD Galbraith set closing date for sale of Oswald Hall

Oswald Hall in Ayrshire, an outstanding classical mansion with superb Robert Adam interiors, is on the market for offers over £1 million. Because of the interest which has been shown, a closing date for offers has now been set for Tuesday 6th March 2012.


The mansion is the main house of the Auchincruive Estate which is situated in wooded countryside on the River Ayr, on the outskirts of the county town of Ayr. It has been owned by the Scottish Agricultural College (SAC) since 1927. SAC have relocated elements of its teaching to the new Riverside Campus in Ayr, and are in the process of consolidating other activities at the Auchincruive Estate over the next few years and Oswald Hall is surplus to their requirements.


An important Grade A listed building which has been well maintained by SAC, it has been used in recent years as a conference centre and wedding venue. It has some spectacular principal rooms designed by Robert Adam and a floor area of about 36,000 square feet. The largest room can easily accommodate 90 delegates.


Being highly accessible from the M77 and A77, Glasgow and Prestwick Airports, it has huge potential for a wide variety of uses – as a private residence with offices, a hotel, headquarters building, research or conversion to residential apartments.


Oswald Hall was built in 1767 by Richard Oswald. Wings were added and other additions made in the 19th century. An impressive and important building, it has superb plasterwork in the main rooms and there are dramatic hanging gardens on the slopes between the mansion and the River Ayr.


Standing in its own grounds of about 38 acres, there is also the prospect of acquiring further land and property within the Auchincruive Estate. SAC and AWG Property Limited have conceived a Masterplan for the future development of the surplus elements of the Estate with a new village of up to 495 homes, 60,000 square feet of business and research floor space, a golf course and equestrian centre.

Oswald Hall is a wonderful opportunity; an historic house in a wonderful position which over time will become the centrepiece of a new village in an accessible situation on the Ayrshire Coast.

The property is being marketed by CKD Galbraith and Knight Frank.

Offers over £1,000,000 are being sought for Oswald Hall.

PDF available on www.ckdgalbraith.co.uk

About CKD Galbraith

CKD Galbraith is the leading independent property consultancy, with 12 offices throughout Scotland. The Firm provides a full range of property consulting services across the commercial, residential, rural and energy sectors. Drawing on a century of experience in land and property management, CKD Galbraith is progressive and dynamic, investing in its 200 people and technology. The Firm provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances. Its associate, CKD Kennedy Macpherson, is based in London.

Enquiries:

CKD Galbraith
7 Killoch Place
Ayr KA7 2EA
Ayrshire, Scotland

Contact: R A Cherry BSc MRICS
Tel: 01292 268181
Fax: 01292 292300
E-mail: bob.cherry@ckdgalbraith.co.uk
Web: www.ckdgalbraith.co.uk

CKD Galbraith’s Ayr Office is a Founder Member of the Elite Ayrshire Business Circle.

Tuesday, 14 February 2012

Rising wind farm rentals continue to generate income for landowners

RENTAL income from wind farm developments increased by between 10 and 15 per cent throughout 2011, according to research by CKD Galbraith, the leading independent property consultancy with 12 offices throughout Scotland.


The rise in agreed rents paid to landlords in the 10 years from 2002 to 2011 inclusive was 250 per cent, the study found.

Along with rental increases, CKD Galbraith noted that other financial agreements, such as payments for use of minerals, frequency of rent reviews and option payments, also increased as developers acknowledged the value of land to renewable energy projects.

The Energy research department at CKD Galbraith ascertained that 13 wind farms became operational in Scotland during 2011, providing an additional installed capacity of 382 megawatts (MW). This, added to existing installed capacity, means that Scotland has 2,784 MW of wind power potential.

Ayrshire and Lanarkshire saw the biggest increases in installed capacity, with 176MW and 141MW added respectively. These were primarily due to large developments coming on line, such as the Arecleoch Wind Farm in Ayrshire and the Clyde South Wind Farm in Lanarkshire, rather than several smaller projects.

The Highlands retain the highest output – around 500MW installed capacity, with a further 630 MW approved or under construction and another 1,004 MW submitted to planners for approval. The Highland region is favoured by developers for its space, reliable wind resource, low population density and a new grid connection on the way.

However, developers continued to face challenges in completing projects – 17 wind farms (309 MW) were refused planning permission throughout 2011, demonstrating the stringent planning requirements that developments must meet prior to approval.

Wind power enables landowners to generate income from other sources, helping to diversify away from more traditional land use, generating funds to reinvest and creating positive effects in local economies, a major benefit in rural areas especially. Another advantage is the developer’s contribution to local communities, often in the form of annual payments to community councils.

In undertaking lease negotiations, CKD Galbraith’s Energy team identified several key trends in the wind farm market:

• Leases are becoming more site-specific and complex as landowners try seek to maximise returns and protect assets;

• Negotiation periods are becoming shorter in many cases as legal advisers gain experience in the sector;

• Landowners are more focused on the tax implications of deals agreed – primarily because returns are greater than previously, with income payable over long terms, making tax planning essential;

• Habitat management agreements and compensatory woodland planting are increasingly a condition of planning consent, requiring developers to improve the environment elsewhere on properties, or plant woodlands if forestry is felled to accommodate wind farm.

• Developers are reverting more to landlords to extend wind farms because (a) as the public adjusts to visual impact, there are fewer objections to additional turbines (b) with infrastructure already in place, development is more straightforward on an existing site.

Aside from larger, developer-led projects, landowners are increasingly leading medium-scale projects themselves, utilising assets either individually or alongside a developer or investor as a joint venture. Where landowners bring land and can raise capital, developers can add knowledge, expertise and further funding. Owners taking this route benefit greatly from the advice of surveyors and other professionals to ensure asset values are protected, and in most cases, all fees are met by the developer.

In small-scale renewable energy projects, attention has focused on changes to the Feed in Tariff scheme relating to solar PV payments. However, landowners should note that rates for small-scale wind are also likely to change in the UK Government’s review, taking place in 2013, though on a lesser scale than for solar.

Developers of single-turbine projects are offering landowners rentals of between 8 and 15 per cent of gross income. These are often fixed rents only, with no staged increases or rent reviews. Single-turbine projects remain subject to planning delays as councils decide how to measure cumulative impact on the local countryside.

Mike Reid, a Partner at CKD Galbraith at Cupar in Fife, commented: “Wind farms are not only a highly effective means of generating renewable energy but they also provide additional investment to create and preserve employment and economic activity in rural areas. We have developed a significant body of data and regularly share this with clients.”

Fiona Samson, a surveyor at the Elgin office of CKD Galbraith and a member of the Firm’s Energy team, added: “There is movement at every level of the wind-farm sector in Scotland. The outlook for 2012 is very positive.”

About CKD Galbraith

CKD Galbraith is the leading independent property consultancy, with 12 offices throughout Scotland. The Firm provides a full range of property consulting services across the commercial, residential, rural and energy sectors. Drawing on a century of experience in land and property management, CKD Galbraith is progressive and dynamic, investing in its 200 people and technology. The Firm provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances. Its associate, CKD Kennedy Macpherson, is based in London.

For further information please visit www.ckdgalbraith.co.uk

Nick Parsons returns to address the Elite Ayrshire Business Circle

The redoubtable Nick Parsons returns at the end of this month to regale the Elite Ayrshire Business Circle with his annual incisive analysis of the present state and future prospects of the local, Scottish, UK and world economies.


Those of us fortunate enough to have heard Nick speak on previous occasions will know that this is one meeting in the EABC calendar that is not to be missed on any account.

Members and guests are welcome, but places are necessarily limited, and are likely to be taken quickly, so please book now.

Time: 2.00 - 3.30pm
Date: Tuesday 28 February
Place:

The Boardroom
Clydesdale Bank
Financial Solutions Centre
43 Alloway Street
Ayr KA7 1SP

RSVP: murdochmacdonald@hotmail.com