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Property Strategy 2021–2026 Executive Summary

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Property Strategy 2021–2026 Executive Summary PROPERTY STRATEGY 2021–2026 EXECUTIVE SUMMARY As the economic and community development agency for the Highlands and Islands, we have a responsibility to promote and support sustainable and inclusive growth in the region. This Property Strategy has been prepared to guide our investment in and management of property over the next five years, to ensure that we best use our assets to harness the region’s potential while supporting the national transition to net zero carbon. Our property portfolio, which spans the diverse geography ■ To ensure the strategy for property is recognised of the Highlands and Islands, is fundamental to the at a regional and local level and implementation work we do. By providing business accommodation is aligned with local needs and based on an and community infrastructure, both directly and in understanding of regional and local market partnership with aligned stakeholders, Highlands and dynamics. Islands Enterprise (HIE) can enable both economic ■ To create opportunities for collaboration with and community development, working collaboratively public and private, third sector and other to address market failure across the region and community-based partners in order to maximise facilitate growth which draws on the numerous unique impact and value for money. opportunities from across the Highlands and Islands. We have set out opportunities relevant to property at a strategic level followed by sector-based opportunities, OUR PROPERTY STRATEGY noting that while specific sectors or projects may be mentioned in this report, our aim is to follow our Acknowledging the diversity of our area, the Property strategic plan and vision to respond to market failure Strategy takes a place-based approach. Economic across the region and we may intervene in sectors or success here in part depends on the availability of a markets as need and opportunity dictates. Investment range of modern business and industrial premises. and intervention decisions will consider: This accommodation needs to support growing sectors and industries including energy, the blue ■ Alignment with operating plan priorities; economy, tourism, food and drink, and space, and ■ Market failure and the most appropriate property we shall work collaboratively with stakeholders ‘tools’ available to address this e.g. new build, from across the Highlands and Islands to identify sale of serviced land, involvement in mixed use opportunities, promote innovation and support the developments and collaborative opportunties. Market delivery of projects which meet people’s needs. Our failure in the Highlands and Islands tends to result properties must be flexible and adaptable to suit in the under provision of property and services in different types of users and they must be sited in commercial property , among other sectors, and can strategic locations to ensure wider regional growth. result in situations where development costs exceed Our Property Strategy also acknowledges the new the estimated property value or other return on challenges emerging across the Highlands and Islands as investment upon completion; a result of the Covid pandemic, Brexit and the transition to ■ Job creation reflecting geographic priorities; net zero. It will help us meet the following objectives: ■ Our place-based plans to support population ■ To utilise the existing property portfolio and new retention and growth in remote and rural investment and development opportunities to locations, aligned with Scottish Government’s underpin the delivery of our strategic priorities repopulation programme; and deliver long-term benefits to the region. ■ Economic impact; ■ To deliver property in line with HIE’s and Scottish ■ Resources available; and Government’s aspiration to achieve net zero by 2045, including interim targets to incorporate low ■ Response to demand in a post-Covid landscape. and zero carbon strategies by 2040. The property and infrastructure team is represented ■ To be creative and proactive in pursuing in all of our area offices, which enables us to tap into place-based development opportunities whilst local knowledge, working with delivery partners and ensuring alignment with Scottish Government’s local communities to assess how, where and when ‘Programme for Government’ and Scotland’s we should use our resources to invest in the property Economic Strategy. market to best effect. 2 ■ IMPLEMENTING OUR PROPERTY STRATEGY Review the property portfolio and consider all options for disposal, cognisant of our net zero One of our biggest strengths is our network of commitments. employees, partners and collaborators from across ■ Review the impacts of a HIE-owned property the Highlands and Islands. In order to maximise portfolio and include these considerations in the impact of our investments and to promote future property decisions. The focus of the community-led investment across the region, review will be on how best we can achieve we will collaborate with partners including local our objectives for the region through property authorities, community development trusts, local development. Impact shall be viewed holistically employers and community groups. Drawing on with a wider focus than final value and income our area teams, we will continue to engage at a generated. local and regional level to ensure that projects are best placed to meet local need and enable local ■ Review our property management approach. industries and communities to thrive. ■ Develop a plan to embed net zero within our Our Property Strategy is an ambitious document development, management, procurement and which will realign the way we work with new investment decisions. priorities and the realities of living, working and ■ Research external funding opportunities with investing in the Highlands and Islands. To do this, a view to identifying potential sources through we have set out an action plan which will guide partnerships, private sector and targeted grants our work in property and infrastructure across the e.g. to fund climate change initiatives. We plan region. We have adopted an area-based approach to carry out this as an initial high level review to our action plan, which has been developed to understand possible funding structures and based on ongoing consultation with our area opportunities. teams and close analysis of local needs. We will ■ Continue to develop and review a table of develop a prioritised action plan which will include prioritised pipeline projects across the region clear goals and timescales for completion and – our Infrastructure Plan (IP). The IP will be will be reviewed on an ongoing basis dependent updated on an ongoing basis, presenting on local and regional priorities. The action plan regularly to Leadership Team. will be regularly reviewed and currently includes commitments to: ■ Develop a practical and accessible matrix to measure performance. Below: Golspie Business Park and Ben Bhraggie, ■ Review our approach to marketing of our property Sutherland. Credit: Angus Mackay / HIE portfolio and opportunities. ■ Establish a clear process for HIE responses to local development plans. ■ Develop a scoring methodology to guide how properties are let and to whom. We will set a range of benchmark targets to measure our success in delivering the Property Strategy and will monitor progress on an annual basis, with formal reviews taking place during years three and five of the strategy. 3 Arnish Fabrication Yard, Isle of Lewis, the key manufacturing and assembly facility for the renewable energy sector in the Western Isles. Credit: Scotavia Images 4 1. INTRODUCTION 1.1. Highlands and Islands Enterprise (HIE) has 1.5. We have identified ten key recommendations prepared this Property Strategy to guide and from the Property Strategy, which will stand the support investment in and management of our region in good stead over the coming years: buildings and land over the next five years. Our property portfolio, which stretches across the Highlands and Islands, is fundamental to 1. We will invest in projects that are responsive the work we do. It includes purpose-built office to market opportunities and are appropriate to accommodation, industrial and laboratory new ways of working post-Covid. space. The purpose of this document is to outline a strategy for how we will support 2. We will invest in building types that will property provision to underpin the delivery contribute to the Government’s net zero targets. of our vision, and outcomes, as set out in our 2019-2022 Strategy and Operating Plan 3. In relative terms, we will increase our (A Plan for Jobs and Communities) and our investment in geographies that face economic 2021 Operating Plan (Action for Jobs and and demographic challenges, ensuring Communities). balanced investment across our area. This will be achieved through projects at out own hand 1.2. Our involvement with property is an important and third party investment. element of our development remit: facilitating and providing business accommodation and 4. We will seek to bring innovation to the supporting community infrastructure. Property is construction supply chain. a key enabler to both economic and community 5. We will require flexibility of design to support development particularly in our region where a broad range of commercial uses, including there is widely recognised and documented multi-use properties where appropriate. market failure across much of the area. The supply of commercial property does not reflect 6. We will actively seek partnership demand within
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