Shambellie House, New Abbey, Dumfries & Galloway: Options

Home , Auchinleck House, Dumfries, Glenluce, Kirkcudbright, Kirkpatrick Durham, Langholm

Shambellie House New Abbey, Dumfries & Galloway

Options Appraisal March 2014

Shambellie House: Options Appraisal March 2014

Contents 1. Executive summary 2. Introduction 3. Local and regional context 4. Immediate issues 5. History and significance 6. Current condition 7. Planning framework 8. Options for reuse 9. Market analysis 10. Capital costs 11. Valuations 12. Revenue income and expenditure analysis 13. Long-term management and financial implications 14. Options comparison and preferred options 15. Conclusions and recommendations

Appendices A Significance drawings B Condition drawings C Repair drawings D Existing and proposed drawings E Quantity surveyor’s reports F Stakeholder workshop report G Pre-application enquiry response H Historic Scotland local visitor information I Valuations for Shambellie House

Shambellie House: Options Appraisal 2 March 2014

1. Executive summary The Prince’s Regeneration Trust (PRT) was commissioned by Dumfries & Galloway Council (D&GC), in conjunction with Scottish Government and National Museums Scotland (NMS), to identify and assess potential options for the reuse of Shambellie House, New Abbey, in Dumfries & Galloway. Shambellie House operated as the National Museum of Costume until February 2013, when it was closed due to high operating costs and difficult general financial climate.

The work on this appraisal took place in the period from August 2013 to March 2014.

As part of the project, we have gathered and analysed background information, as well as assessed the condition and significance of Shambellie House and its capacity for change. A workshop with key stakeholders was held in October 2013. The ideas regarding potential new uses for Shambellie gathered at the workshop and through conversations with local people helped develop six options for reuse. These were substantiated by architectural drawings and outline assessments of capital costs. In parallel, we carried out market research into comparable properties and uses from the Dumfries & Galloway area and further afield, spoken to potential operators / end users and completed a financial appraisal of the options. Finally, our team assessed the six options based on 13 criteria and developed recommendations for two preferred options. This report summarises the results of this work.

The client brief for the assessment required options that ‘maximise the building’s potential and contribution to the life of the local community’ including ‘cultural use in the widest sense, for example, educational use, social enterprise, heritage, local community use, etc.’

We have therefore focused mainly on four options that have the potential to deliver benefits to the community and bring about increased visitor numbers and visitor spend to New Abbey and the wider area. However, we have also included the valuation, budget costs and other information related to two options based on returning the building to domestic use and sale on the open market. All options are included in the final assessment matrix in Section 14.1

1.1 Summary of options and the assessment criteria The four “non-sale” options covered by the assessment are: • Option 1a High-end self-catering holiday let with community use in the basement (hereafter referred to as Option 1a (Holiday Let & Community)). • Option 1b High-end self-catering holiday let with two separate apartments (hereafter referred to as Option 1b (Holiday Let - 2 Apartments)). • Option 2a Residential cook school (hereafter referred to as Option 2a (Cook School)).

Shambellie House: Options Appraisal 3 March 2014

• Option 2b Residential centre for art/craft or field/outdoor activities (hereafter referred to as Option 2b (Art/Outdoor Centre)). The two sale options that are also covered are: • Option 3a Private House (hereafter referred to as Option 3a (Private House)). • Option 3b Two Private Houses (hereafter referred to as Option 3b (Two Private Houses)).

The options have been assessed using a number of criteria related to the project brief and key issues that came out of the stakeholder workshop in October 2013 and subsequent research by PRT. These are related to: • The likelihood of the options obtaining planning and listed building consents; • The impact of the options on the historic features and integrity of Shambellie House and its setting; • Capital costs of converting the building to suit proposed new uses; • Financial viability / level of surplus the options are likely to achieve in the first seven years of operation; • Ability to attract grant funding to cover capital and potentially revenue expenditure; • Financial gains for Scottish Government that the different options are likely to achieve in the form of sale or tax receipts; • Level of public access under different options; • Scope for community participation through community events / use; • Cultural and educational activities proposed within different options, to reflect the project brief and the use envisaged by the original owners when they gifted the building to Scottish Government; • How closely the proposed new uses fit with D&GC’s tourism strategies, needs and aspirations; • Direct employment opportunities offered through proposed uses; • Wider economic benefits that the proposed uses are likely to bring about; and • Complexity and speed of delivery, level of operator/end user interest and saleability of the property on open market.

1.2 The preferred options The assessment based on the above criteria resulted in two options scoring significantly higher than the rest – Option 1a (Holiday Let & Community) (the highest) and Option 2b (Art/Outdoor Centre) (second highest). We recommend these two options for further consideration by the client group.

Option 1a (Holiday Let & Community) scores overall highest, due to the multiple social and economic benefits it brings to the area and the potentially straight forward delivery. With a budget cost of £430,000, and an annual surplus reaching £10,000 by Year 7

Shambellie House: Options Appraisal 4 March 2014

it is a less financially attractive than other non-sale options. This is mainly due to the increased expenditure associated with the management of the community uses. This could be mitigated by seeking external funding for the community centre manager. Securing a reliable end-user for the basement space would be necessary. We recommend that community uses related to visual arts, craft, landscape natural heritage and horticulture, should be encouraged, to tie in with existing resources and established markets in the area. A well-established existing trust is interested in this option so the realisation of the project could be relatively straight forward.

Option 2b (Art/Outdoor Centre) is an attractive proposition from an economic perspective and because it fits well with the area’s tourism strategy and offer. This option has a high budget cost but is expected to generate an annual surplus of over £46,000 by Year 7 of its operation. It provides ideal scope for creative activity, education and learning and would be highly desirable given Shambellie’s artistic history and the desire for this type of use to continue. Option 2b depends, of course, on securing an end-user with the capital to invest in conversion and confidence in the market for specific types of residential courses. Given Dumfries & Galloway’s demonstrated strengths in environmental art, landscape, craft, sculpture and other visual arts, Shambellie House could be very attractive to such an operator. Similarly, residential courses related to the outdoors, walking, cycling, horticulture, or field study of natural heritage would be equally well-suited in this location.

1.4 Conclusions and recommendations Shambellie House is a good building of its type, relatively unaltered and in a very attractive setting. The character of the House and the setting should be preserved and both preferred Options in this appraisal would secure this, as well as preservation of the plan and overall character of the House. Through progressing conversations with stakeholders further, there is the opportunity to develop either of the two preferred options to a positive conclusion.

Shambellie House: Options Appraisal 5 March 2014

D&GC, New Abbey Community Council, the community and other local stakeholders. This could include organising a one-day follow-up event at Shambellie House to identify members of the community interested in forming a charitable trust to take on the basement space; • Discuss further with agents for both Shambellie Estate and Shambellie Walled Garden how best to enable development of compatible activity and courses for residential centre; • Liaise with D&GC’s Development Planning department on preferred options and necessary consents in due course; and • Further investigate the implications on the valuation done by Savills of developing the car park site for residential use and the possibility of establishing an endowment fund based on the proceeds of sale of this site to help run the House and pay for its long-term maintenance.

It is recommended that Scottish Government pursues a disposal strategy based on the transfer of the property to an existing or new trust at no cost as their preferred option. The rationale for pursuing a trust-based solution is: 1. The property was left to the nation for use as a Museum of Costume. Now that this use is redundant, it is important that at least some of the principles behind the original use are retained, notably: public access, the promotion of arts and culture in Scotland, education, and encouraging visitors to Dumfries and Galloway. 2. A trust-based solution would guarantee continued public access. This would be highest for the preferred Options 1a (Holiday Let & Community) and 2b (Art/Outdoor Centre).

As part of the conditions of any transfer of the property to a trust, the body should be given sufficient period (5 years) to run the property and try to achieve viability. If, after this pre- agreed period, the trust is unable to run the property at a surplus, it could then be transferred back to Scottish Government to sell on the open market. Sale of the property should therefore only be seen as a fall-back position if preferred options fail.

It is important that the preferred (non-sale) options are given the maximum chance of success, because of the social and economic benefits they could bring to the area. Crucially, they should be supported by the raising of an endowment to cover the on-going long-term maintenance and repair costs, which may not be met through the business.

Finally, it is essential that the consultation and involvement of the local community, initiated through the work on this Options Assessment, should continue. We recommend that an update is circulated on the findings presented in this report with opportunity for feedback and further development.

Shambellie House: Options Appraisal 6 March 2014

2. Introduction 2.1 Background and project aims In August 2013 PRT was commissioned by D&GC, in conjunction with Scottish Government and NMS, to help identify a viable new use for Shambellie House, New Abbey, in Dumfries & Galloway. This commission came about through the recent closure of Shambellie House as the National Museum of Costume. Following extensive research into retaining the Museum within Shambellie House, the difficult decision to close was taken and the extensive costume collection removed to Edinburgh. NMS announced the closure in February 2013, as a result of the high cost per visitor of operating within a difficult general financial climate.

Shambellie House

NMS ceased operations at Shambellie on 30 September 2013. Scottish Government, as owner of the building, is keen to find a new use for this historic building that should be self- sustaining and that should maximise the potential contribution to the life of the local community as far as possible. Scottish Government has provided the funding for this Options Appraisal from the Culture and Heritage Directorate.

Shambellie House: Options Appraisal 7 March 2014

2.2 The process As part of this commission PRT team has: • Visited the site and carried out a baseline assessment of the condition and significance of Shambellie House, as well as its capacity for change; • Gathered background information on the project’s socio-economic context and held initial consultations with the client group and Historic Scotland; • Held a workshop in October with the client group, the community in New Abbey and key stakeholders to develop and agree options to explore further; spoken to many local people throughout the process to understand more about the village and its community; • Based on the above, developed six options for reuse, including architectural drawings and outline assessment of costs; this involved detailed discussions with our architect on the feasibility of different options and proposed alterations; • Carried out market research into comparable properties from the Dumfries & Galloway area and further afield and spoken to other operators such as The Landmark Trust, The Vivat Trust, Large Holiday Houses Scotland, Cottages4You and WASPS, to understand more about the requirements of these organisations and to assess whether there is interest in taking on Shambellie House; • Completed a financial appraisal of the options in terms of their capital and operational income and expenditure; • Carried out a comprehensive assessment of the six options based on 14 criteria and developed recommendations for two preferred options; and • Summarised results of this work in this report.

2.3 The team PRT is a charity established by HRH The Prince Charles, Duke of Rothesay. We believe that to restore our historic places to active and relevant community assets is not only possible - it is the most sustainable approach to regeneration. Buildings, like people and places, need to adapt to survive. We rescue redundant historic buildings and give them a sustainable new use for the benefit of the surrounding community.

Simpson & Brown Architects and Armour Construction Consultants were contracted by PRT to carry out the architectural work and quantity surveying. We are grateful to John Sanders of Simpson & Brown for his work on the history of Shambellie House and its architect, David Bryce.

Shambellie House: Options Appraisal 8 March 2014

Armorial panel, Shambellie House Stewart cypher and date of build completion

2.4 Project stakeholders PRT has written and co-ordinated this report with the valuable assistance of key stakeholders including D&GC; Scottish Government; NMS; the community of New Abbey; Historic Scotland; Shambellie Estate and Mr Charles Grieve, Estate Factor; and many other individuals who have contributed thoughts and information helpful to this process, not least Ms Lou Greenshields, great niece of Charles Stewart who bequeathed the House and costume collection to the nation.

Shambellie House: Options Appraisal 9 March 2014

3. Local and regional context New Abbey is a small village eight miles south of Dumfries, the county town with a population of 31,600. Dumfries and Galloway covers most of south-west Scotland and is the third largest region in Scotland. It is a rural area with people either living in the countryside or small settlements. The scenery is attractive with hills, moorland, a varied coastline and very little industrial areas giving the area an unspoiled character.

D&GC map of Dumfries & Galloway region

3.1 New Abbey and Shambellie Estate Shambellie House is located approximately 300 metres north of the village of New Abbey. The village has a population of around 300 and has a number of historic sites, most notably the ruined Cistercian Sweetheart Abbey, founded by Lady Devorgilla in 1273 in memory of her husband John Balliol, in the care of Historic Scotland. The village also contains New Abbey Corn Mill, an 18th century water-powered mill built by the Stewarts of Shambellie House, restored to full working order by Historic Scotland and operated as their second visitor attraction. Other attractions in the village include Shambellie Walled Garden, which sits inside the Shambellie Estate, brought back to life in 2005 by local horticulturalist Sheila Cameron, having been abandoned in the 1960s. There is also New Abbey Tea Rooms, two hotels, an antiques business and the local village shop.

Shambellie House: Options Appraisal 10 March 2014

The site of Shambellie House consists of 2.3 hectares of land immediately around the House, along with the drive, lodge and a 25m protected tree belt running around the perimeter. Outwith this lies Shambellie Estate, approximately 2,000 acres of agricultural and amenity land with areas of commercial woodland. The Estate is managed by GM Thomson & Co on behalf of Estate Trustees, and is open to the public for walking and cycling. It contains areas of broadleaf woodland of high amenity value, conifer woodland of high silvicultural value, and a 200-year-old beech avenue along the main road.

Aerial view of Shambellie House, with walled garden Deed plan of House and grounds, 1978

Shambellie House was built by William Stewart and completed in 1858. The Stewart family were long-standing landowners around New Abbey. The family can be traced back to the 15th century in Galloway and successive generations of Stewarts have lived in New Abbey, playing a significant role in the community.

Shambellie beech avenue, part of the Estate Shambellie Wood, part of the Estate

Shambellie House: Options Appraisal 11 March 2014

Map of Shambellie Estate (hatched red) surrounding village of New Abbey

3.2 Museum of Costume In 1977 Charles Stewart (1915-2001), the great grandson of William, gave the House to the Scottish nation, falling under the auspices of NMS. Charles Stewart was a fine artist and book illustrator and during his lifetime he amassed a significant collection of costume and accessories, in excess of 6,000 items. These were also gifted to the nation. The gift of the House was specifically so that it could be used to display the collection. Charles Stewart maintained a passionate interest in the displays at Shambellie House until his death in 2001.

Charles Stewart Drawing of Shambellie House by Charles Stewart, 1944

Shambellie House: Options Appraisal 12 March 2014

A package of repair, conservation and minor alteration was carried out following the transfer of the House to the care of NMS. The House then opened as Shambellie House Costume Museum in 1982, becoming the National Museum of Costume as part of a brand review in 2006.

The museum presented a series of core exhibitions examining fashion and social etiquette from the 1870s to the 1950s, with examples from Charles Stewart’s costume collection forming the centrepieces of the displays, augmented by a loan collection of over 100 local and family history items from relatives of the Stewart family. In addition to the main exhibition, the museum put on a special exhibition each year focusing on a particular period or movement in history.

The museum opened to the public seasonally, from 10am to 5pm, April to October. In 2012, it attracted 15,800 visitors, 9,500 of which visited the museum itself, with the remaining 6,300 visiting the shop, on-site café or the wider estate only. A number of studies into the demographics of visitors to the museum showed that its core audience was aged over 45 and female. Surveys also note that the majority of respondents were first time visitors, and the site lacked a large number of repeat visits. The museum also saw a relatively low rate of school visits.

Studies had shown that the overall satisfaction of visitors to the museum was consistently high. The majority of visitors gave this rating because of the quality of the displays and the friendly staff.

There were, however, some barriers that visitors highlighted. The biggest barrier to visiting was seen as the museum’s location, both for first time visitors and with regards to repeat visits. This was particularly pertinent to those living in Scotland’s ‘central belt’, from which the museum lies over 1.5 hours’ drive. Visitors also commented that they had expected to see a larger variety and number of the collection on display at a national museum.

Permanent display in the drawing room Special exhibition

Shambellie House: Options Appraisal 13 March 2014

An addendum to a number of comments in surveys noted that more could have been made of the setting of the museum, including the House and gardens, and tell more of the history of the Stewart family and how it was connected to the collection, with a number of visitors indicating that the purpose for their visit was to see the House itself.

3.3 Closure of the Museum Despite a considerable attempt to encourage new and repeated visitors to the museum, particularly after the 2006 rebrand, the effects of the international financial crisis/recession, cuts to UK expenditure and a history of low visitor numbers (in comparison to the other national museums) led NMS to close the museum in 2013 before the summer season.

As well as the argument that the museum was expensive to operate in relation to the number of visitors, NMS also noted in their proposal to close the museum that: • The domestic layout of the House presents constraints in terms of its suitability and effectiveness as a museum; • Limited space meant that only a tiny proportion of the Charles Stewart material had ever been displayed at the site; • The location of the site was a major barrier to audience development and there were mixed perceptions amongst visitors as to the suitability of the site as a national museum; and • Despite NMS strengthening the product, reviewing income generation and targeting new markets over a six-year period since the rebrand, there had been no significant difference to the overall level of visits.

The costume collection was removed to NMS storage in Edinburgh in the Spring of 2013.

3.4 Economy of Dumfries & Galloway Statistics suggest that the economy in Dumfries & Galloway is growing and improving at a slower rate that the rest of Scotland, with lower levels of economic activity and increasing rates of unemployment. The population is mostly rural, and therefore creates an economy with distinctive rural characteristics, including high levels of self-employment, seasonal work and lower wage jobs. These characteristics can throw up misleading statistics; whilst economic activity rates in D&G are shown as being higher than in Scotland as a whole, they mask the high levels of self-employment and part-time and seasonal employment that do not offer the same opportunities for business growth.

In response to the current economic situation, D&GC has published a five-year regional economic strategy, which aims to create social, environmental and economic growth and sustainability, to be acted upon by business leaders, policy makers and local people. The strategic plan has four main themes; business infrastructure, growing business, quality of life

Shambellie House: Options Appraisal 14 March 2014

and developing a competitive work force. It aims to remove barriers for investment, improve networking, marketing and cluster development, and promote a desirable place to live, invest in, study and visit.

Reviewed below are a number of issues that contribute to the current economic situation in D&G that the strategic plan seeks to address, some of which are particularly pertinent to New Abbey:

3.4.1 Infrastructure Dumfries & Galloway suffers from a poor transport infrastructure, which impacts the ability to trade and also the confidence of businesses in the area. New Abbey itself is ranked in decile 1 for geographic access to services, placing it within the 10% most deprived areas in the region. Poor geographic access to services impacts on an individual’s ability to find work, access healthcare and enjoy social and leisure activities. In particular, the strategy identifies the need for the creation of high-speed rail links from the area to Glasgow, Edinburgh and Carlisle. There is also a call to upgrade the A75/77 and make Stranraer in the west of the county a key transport hub. In addition to transport links, the strategy identifies the need for an upgrade to the region’s information infrastructure, including the delivery of broadband communications across the region, which will be vital to remote, rural workers.

3.4.2 Unemployment Unemployment in D&G has risen 2% since 2009, with lower levels of economic activity and higher levels of self-employment compared to the rest of Scotland. High levels of self- employment often mean fewer opportunities to employ others and less company start-ups. 94% of businesses in D&G employ fewer than 50 people, and this can lead to a lack of skills and poor labour mobility. In addition, D&G has a noted imbalance between public and private sector employment relative to other areas, with a 60:40 private to public sector ratio, creating an imbalance within the economy and making it difficult to create wealth in the future from a shrinking business base; there has been a loss of 16% in jobs in the private sector since 1999 compared to a gain of 35% in the public sector.

The economic strategy seeks to address these issues by encouraging employers to develop and diversify the skill base of their employees by offering on-going training and development and by encouraging small businesses to expand and take on employees. It will also work to increase the number of private sector jobs in the area, and provide opportunities and incentives for businesses to develop and exchange knowledge. The Council will work to create a well-trained and well-educated workforce by expanding opportunities with local higher education establishments, Crichton Campus and Barony College, and will look to employ the strategy laid out in Scottish Government’s ‘More Choices, More Chances’ report to reduce the number of NEETs in Dumfries.

Shambellie House: Options Appraisal 15 March 2014

3.4.3 Population D&G has a lower proportion of 18-29 year olds (13.7%) and a higher proportion of 60-74 year olds (16.8%) compared to Scotland as a whole (17.5% and 14% respectively). These figures show an aging population with declining numbers of people of working age. A trend is emerging with employers not being able to gain access to workers in the 18-45 year old range and therefore going out of business, leading to younger workers from outside the area not immigrating in due to a lack of jobs. The problem of a lack of a younger workforce is exacerbated by the housing shortage in D&G, including a lack of affordable housing. This is particularly evident in the New Abbey area, with a large proportion of the population living in privately rented accommodation, rather than owning their own home.

In order to address these issues, the Council’s economic strategy looks to provide incentives for businesses to employ graduates or offer placements to research students. It also calls for a redrafting of the Local Housing Strategy and the delivery of more affordable housing. In addition, it looks to promote and brand the region as a ‘natural place’, through environmental improvement, ‘green-ness’, avoidance of pollution, waste management and promotion of sustainable economic growth. These measures are aimed at improving quality of life indicators (such as education, health and safety, culture and leisure opportunities), creating a more desirable setting and encouraging underrepresented groups to move to the region.

3.4.5 Tourism New Abbey, along with Dumfries & Galloway, relies heavily on the tourism industry, with an estimated value to the area of £287 million, attracting 2.5 million visitors and actively employing 7,000 people. Hotels and restaurants employ 13% of residents in New Abbey, and 6% in D&G, compared to 5% of Scotland as a whole. In addition, the largest employment sector in the area of wholesale/retail trade relies at least partly, if not greatly, on the business of tourists. Currently, the average length of stay in Dumfries & Galloway is 4.3 nights, has a party average of 2.8 people and the average spend of £46 per head per stay. Fortunately, the tourist industry in Scotland has fared well throughout the recession with figures up 3% year-on-year. However, 2013 reports indicate the industry may face difficulties going forward.

The Regional Tourism Strategy (March 2011) extends from 2011 to 2016 and seeks for an annual growth of 4% and an annual worth of £340 million into the local economy by 2015. The partnership responsible for supporting and representing the tourism industry in the area includes representatives of D&GC, Destination Dumfries & Galloway and VisitScotland. However, in order to achieve success in this challenging economic time, all those involved with the tourism industry within Dumfries & Galloway, Scotland and beyond must be supportive of this Strategy. It is recognised that the tourism sector has greater potential for improvement and the possibility to increase financial contribution to the region’s economy.

Shambellie House: Options Appraisal 16 March 2014

The main goals of the tourism strategy for Dumfries & Galloway are to: • increase the volume of visitors, particularly from within the UK • extend their average stay • increase the average visitor spending.

Therefore, the area’s tourist offer (or ‘product’) must match the needs of the target market. The Regional Tourism Strategy states that a detailed product audit will be conducted to understand the target audiences and benchmark Dumfries & Galloway against other competing destinations in terms practices and approaches. The audit will address both built and natural attractions and supporting offer, with a goal of identifying product gaps and extending the tourism season / ensuring year round availability of a full range of products. Visitor information services will be maximised, and community projects and initiatives will be supported by the Council. In order to monitor whether customers’ expectations are met, a visitor’s survey will be administered, collected and analysed. In addition, the number of visitors, their spending and length of stay in the area, will be monitored on an ongoing basis.

In order for the first goal to be achieved, awareness must be raised about Dumfries and Galloway and its year-round appeal. Using the product audit, a marketing strategy and promotional plan will be developed with the aim of creating an internationally unique brand. Dumfries and Galloway will be rebranded as the ‘natural place’ focusing much of the tourist attractions on the landscape, agriculture and food production. Key events in the area will also be linked to the brand, by offering event and accommodation packages. The impact of the marketing strategy and promotional plan will be monitored through website visits, the level of media items and coverage.

Another major objective of the Regional Tourism Strategy is to maximise the potential of the local people and make clear the benefits of tourism for the community. This will be achieved by: • making training available for all parts of the tourism industry; • encouraging businesses to develop innovative products and expand in order to offer new employment opportunities; • raising the profile of tourism vocations and careers, to encourage personal investment into the sector; and • making the population of D&G aware that existing local businesses and the community as a whole can benefit from a vibrant tourism economy.

Shambellie House: Options Appraisal 17 March 2014

4. Immediate issues 4.1 Building at risk Shambellie House is currently empty and without a use, and as such it is considered a building at risk. Without a swift process to secure a viable new use, the building will be at risk of neglect and its condition will be likely to deteriorate. Since the House is in good condition at present, it would be sensible to act fast to ensure that the cost of repairs to any new user does not increase significantly in the interim. It will be important to ensure that the building is sufficiently heated to avoid risk of damage from burst pipes in the winter and dampness caused by water ingress. It is also important to ensure that the building is fully secure to avoid risk of vandalism or break-in.

4.2 Collection of paintings and objects Regulating the environmental conditions and keeping the building secure is particularly important given the House contains a collection of paintings, furniture and artefacts associated with its history. While the collection has been carefully packaged to ensure its protection and is stored in a locked room, this will not prevent every eventuality. A plan for the care of the collection should be developed in liaison with the D&GC’s Museum Service. Ideally, key paintings could be displayed in Shambellie for the long-term, because the importance of the items is inextricably linked to the House. For example, it would be fitting if the family portraits and paintings of local scenes were hung in the House in the long-term. Equally, items of furniture could be incorporated in the new use where appropriate.

The collection is owned by Lou Greenshields. Dumfries Museum is interested in the collection, but at present does not have the space to store it. Both Dumfries Museum and National Museums Scotland agree that the collection is of local significance, rather than national, so it would seem advisable to retain the collection on display in the House and incorporate the items into the new use if/where appropriate.

Shambellie House: Options Appraisal 18 March 2014

Collection in storage 18th century family portrait

An inventory of the collection was prepared in 2001, amounting to around 100 items and valued at that time at £40,750.

4.3 Scottish Government disposal of property Any options for the future of Shambellie House must be considered in relation to Scottish Government’s rules for disposal of Government Property. The Scottish Public Finance Manual provides guidance for situations where Government property becomes surplus to requirements. Timely disposal of property is encouraged:

1. “Immediately property is identified as likely to become surplus to requirements thought must be given to arrangements for its disposal. The earlier a property is identified as being surplus the easier it is to plan its disposal or re-use. Early identification allows consultation with other potential users and planning authorities. Vacant buildings can be difficult to sell and can also be very costly to heat, maintain and keep secure.”1

Responsibility for the building transferred back to Scottish Government on the 30th September 2013. The process of disposal is underway and this Options Appraisal is one of the key stages in the process whereby establishing the planning position and exploring any potential for development is necessary. Pre-sale and restored valuations are also required as part of the process.

The Government’s guidance suggests that, in certain circumstances, it may be appropriate to dispose of historic properties for less than the market value, if this results in the best return in terms of Scottish Ministers’ policy on the protection of historic buildings and areas.

1 Scottish Public Finance Manual

Shambellie House: Options Appraisal 19 March 2014

There may be pressure on Scottish Government, however, to reach a resolution quickly, rather than spend money heating and maintaining a building that is surplus to requirements. Although in theory Scottish Government may have up to 3 years for disposal of property, in this case it would be unacceptable to leave a historic building at risk for any significant length of time. However, simply selling the building on the open market as a private dwelling may bring little benefit to the wider community other than seeing the building used again quickly.

Issues relating to disposal and State Aid regulations may also arise, and this is discussed in more detail in Section 13.7.

Shambellie House: Options Appraisal 20 March 2014

5. History and significance 5.1 History of the House, client and architect Shambellie House was built by William Stewart (1815-74) and completed in 1858. The Stewarts of Shambellie have played a significant role in the community and have been engaged in the management of Shambellie Estate developing forestry from the 1770s – much of the land surrounding the House supplied the timber for the local saw mill. The bookcase in the library was made from wood felled on the estate.

William Stewart's architect was David Bryce. By the 1850s Bryce had become one of the most successful architects in Scotland. His practice carried out a full range of public, church and domestic architecture and was typical of a successful 19th-century practice, but Bryce was particularly known for his country houses. The houses designed by Bryce ranged from relatively small estate houses, through villas, to some of the largest country houses built in Scotland during the 19th century, such as Balfour Castle in Orkney and Torosay Castle on Mull.

One of the aspects of Bryce’s career which is most significant is his refinement and promotion of the Scottish Baronial style in domestic architecture. By 1844 Bryce formed a business association with William Burn. Burn was, by some distance, the most successful country house architect of the 19th century in Scotland. The domestic work of Bryce and Burn is similar in plan layout and detail. Together, William Burn and David Bryce promoted an architectural style for large country houses which depended on the history of Scottish houses between the 15th and 17th centuries. In order to promote this style, Burn and Bryce sponsored Robert William Billings to produce a book, Baronial and Ecclesiastical Antiquities of Scotland. This became a source book for Baronial detail which was influential for architects and their patrons throughout the rest of the 19th century.

Bust of the architect, David Bryce Balfour Castle, Shapinsay, Orkney, built c1847

Shambellie House: Options Appraisal 21 March 2014

However, making their houses look authentically Scottish is not the only reason for the success of Burn and Bryce as the architects of large country houses. William Burn’s success was based on an understanding of the lifestyle of his aristocratic clients. He devised a systematic plan which responded to the progression of the way that rooms were used throughout a typical day.

Burn built over 50 country houses and in almost all of them the plan is based on a sequence of rooms which start from the master bedroom with a dressing room then through the 'female domain' of morning room and drawing room, then to the library, and then into ‘male domain' of the dining room and billiard room. The rooms would be arranged around a central space, often containing the stairs which was generally termed the corridor. The corridor was often a large and impressive room which is used for people to gather before going out on country pursuits. It could also be used for entertaining around a piano.

This standard plan influenced the position of a new house on the site. The female domain would be more private than the male domain of dining room and billiard room. The dining room and billiard room would be used for business contacts and meetings with male visitors not necessarily reaching as far into the house as the drawing room. Often, the billiard room would be used for smoking cigars. There are many examples where billiard rooms are partly detached in 19th-century country houses so that they could be ventilated and the smell of cigar smoke would not permeate the rest of the building. Typically, the male domain would be placed towards the more public part of the house. This would be on the entrance front facing towards the approach along a driveway. The female rooms would be more likely to be placed along a more private garden front which could not be seen from the approach.

Victorian country houses were also planned very carefully around the relation between the building owner, their family, and their staff. The number of staff would change in proportion to the size of the country house. In very large country houses, there was a separate room for every form of work that the staff would carry out, and for the storage of each type of food, wine, silver and dinner service. Although Burn’s idealised standard plan only applied to the largest houses, all of his houses are influenced by this model layout. Often, as at Shambellie, the layout was reduced to suit the owner’s budget but the core components of the layout remain.

There is a difference between the way that Burn and Bryce used the standard arrangement. Burn tended to design great houses with two main stories over a basement so that his buildings have a horizontal emphasis possibly influenced by the classical architecture which was in vogue at the start of his career. Bryce was younger and his buildings are often taller with a vertical emphasis. This proportion was more in keeping with the Scottish 16th and 17th century source material for the Baronial style but also, more generally, a characteristic of Scottish 19th century romantic revivalism.

Shambellie House: Options Appraisal 22 March 2014

When Bryce received the commission for Shambellie from William Stewart, he designed a much larger house than this client could afford. The house that was eventually built was a smaller version of the same layout, but shorn of some detail. Bryce’s failure to meet the cost restrictions of his client led to a difficult relationship between them and this is documented in letters between architect and client from 1854 to 1857. This relationship might not have been helped by David Bryce’s famously forthright manner.

Even the final design was more costly than Stewart wished, which gave rise to an acrimonious correspondence between Bryce and his patron. The building was left without finishing the attics to reduce the cost. The completion of these in 1866 was undertaken by James Barbour, an architect based in Dumfries, who also had designed the gate lodge in 1864.

5.2 Description of the House Shambellie House has a reduced version of the typical Bryce layout. The two main rooms, the drawing room and dining room, are placed on the garden front which faces south east. The dining room is the northern of the two rooms and is closer to the approach to the House which passes around the east and north sides before arriving at the entrance front to the south west. These two rooms, and the bedrooms above them, have the best views, eastwards along the Solway and southwards over New Abbey. These views would have been more distant before the maturity of the woodland around the gardens.

The entrance was kept relatively low key, although a separate porch leads to a stair of half a storey so that the main floor is raised above the gardens and makes the best of the views. As with many 19th century country houses particularly by Burn, the entrance passes through two right angle changes of direction before reaching the corridor at the centre of the House. In a larger house, the sequence would have been drawing room – library – dining room, but, in this case, the library is placed close to the entrance, possibly so that it could be used as an office for conducting estate business.

At the northern part of the plan, furthest away from the views and sunlight, is the service range of the House. This is located so that there is a direct relationship between the kitchens and serving area and the dining room. There is also a spiral stair which serves all levels of the House so that staff could reach all of the rooms of the House without being seen on the main stair.

Even in its reduced form, the design of Shambellie remains a very typical example of Bryce’s exuberant handling of the baronial motifs. The bay window of the dining room which reduces from a square base to a canted two storey bay but is then corbelled back to a rectangular projection to form a gable, is a design which was so often used by Bryce that it could be considered to be a signature motif. Often, as at Shambellie, it was combined with a

Shambellie House: Options Appraisal 23 March 2014

corner tower to make a complex arrangement of rectangles and cylinders, triangles and cones and to create a display of baronial complexity at the point where it makes the strongest impression on the approach along the drive.

Other details used by Bryce in the design of Shambellie can be found in other Bryce buildings, such as the double gable on the south-west front, the use of stepped string courses and the prominent conical roof with pronounced bell cast and exuberant finial.

It is possible, in current perception, that the requirement to remove extraneous baronial detail to ensure that the building met the client’s budget has had an aesthetic benefit. The service wing to the north is a simple block with crow stepped gables, rising to elegantly detailed chimneys. There is a pronounced offset string course, facing the driveway as it approaches the House from the north.

The reason that 19th century detailing often does not look like an authentic revival of 16th or 17th century precedents to our eyes is not due to a failure to copy historic precedent accurately, but in its overuse that produces an unbelievably elaborate roof outline. The simplification and removal of excess detail in the north block and northwest front of Shambellie have produced a Baronial house, which looks more like the character of architecture that Bryce was reviving than in many of his other houses.

Scots Baronial style Crowstepped gables and pepperpot turrets

The interior detail is surprisingly low key for a 19th century country house of this status. This might be an indication of Stewart’s desire to control costs during the finishing stages of the construction of his house. The fireplaces are marble and, as always, black marble is used for the dining room and white marble for the drawing room. The designs of the three major

Shambellie House: Options Appraisal 24 March 2014

fireplace chimney pieces for drawing, dining rooms and library appear to be by the same designer but they contain relatively little carved work and are possibly not by Bryce.

Dining room Dining room chimneypiece

Most of the cornices are plain run cornices and the only enriched plasterwork is in the cornice of the drawing room and dining room. As with many Burn and Bryce interiors, the interior style is loosely derived from English 17th century detail, known as the Jacobean style, but with reference to some Scottish interiors, such as Glamis and Craigievar. The staircase is in this Jacobean style.

Bryce’s detailed construction drawings survive. These became the contract drawings and are signed by the various tradesmen who carried out the work. There were a few changes between the contract drawings and the way that the building was constructed. Most intriguing of these was the way that the design of the stair was altered. In Bryce’s design it was to rise anti-clockwise on plan, with the foot of the stair being most visible in the view at the point where the stair hall is entered from the stair rising from the porch. It seems likely that the change in the arrangement of the stair, so that it rises clockwise on plan, was a decision that was made after the external masonry had been built.

The change in the stair design has led to an odd arrangement where the stair passes across the principal floor window and the upper window is smaller than it could have been to adequately light the stair. It has resulted in an illogical length of balustraded top landing on the bedroom level which does not lead to any room.

The reason for changing the design of the stair could have been a practical one. At the second landing, between the ground and first floor, the stair is level with the second storey of the service wing. This would have been the case in the original arrangement but the corridor link between the main stair and the service stair would have been more convoluted and would have used up more space.

Shambellie House: Options Appraisal 25 March 2014

The other change is minor – this was the change of the single storey outshot from the north east side of the service range from a block with a monopitch roof facing south east to a monopitch roof facing north east.

Changes in the 110 years of Stewart family occupancy, between the completion of the building and its donation, were relatively minor. Photographs held by the Royal Commission for the Ancient and Historical Buildings of Scotland (RCAHMS) showing how the building was furnished, possibly around the end of the 19th century. A cabinet was made for the library using timber from the estate. This survives in situ.

In 1897 a major extension to the building was proposed but not realised. This major alteration was designed by Dumfries architect James Barbour. The proposal was an ambitious one – to build a new tower on the western corner next to the existing porch. Its main function, in terms of planning, would have been to add a further room to the male domain – the billiard room. It would have been placed near to the entrance so that it could be used for business. There was to have been a separate access from the library, but the billiard room would have had its own doorway to the garden. There would have been two levels of additional bedrooms above.

Aesthetically, the extension would have changed the perception of Shambellie as an old Scottish mansion. In using the Baronial style, Bryce intended his house to sit in the landscape in a way which imitates the quality of Scottish houses at the centre of a country estate. The aesthetic idea of the extension was to convey this message in a more overt way by creating an architectural fiction of a multi-phase building. The billiard block was designed to look like the original tower house dating from the 15th century with the Bryce building as its 16th or 17th century extension.

Curiously, the proposals were based on drawn information which was not accurate. The drawings that survive are a ‘survey’ set with the proposed alterations drawn on in pencil. The drawing does not show the building as it was constructed either in plan or elevation. It might be an earlier scheme by Bryce than the one that was built. The stair is shown rising anticlockwise, as Bryce intended, but in a different position to the Bryce contract drawings.

Some alterations were also proposed for the Bryce block. These would have provided bay windows to the south-west side of the drawing room and the library.

The building appears to have been altered very little during the 20th century, up to the time that it was gifted to the state. There seems to have been minor amendments in the basement and it is probable that alterations were made with changes in plumbing and the introduction of electricity. The bedroom above the entrance appears to have been subdivided to provide a further bathroom with a new window cut through the northeast

Shambellie House: Options Appraisal 26 March 2014

wall of the entrance block in a discreet position. This alteration to create a bathroom was removed during the National Museum of Scotland alterations but the new window was retained. The mirror, which was placed above a table against the north-west wall of the drawing room, has been moved to the stair hall.

A substantial package of repairs, conservation and minor alterations was carried out following the transfer of the building in 1977. Photographs taken in 1976 show the condition of the building had deteriorated. There is some evidence of slates being out of position and it is likely that leadwork, then 120 years old, was in poor condition and needed to be renewed. The repairs included taking down chimneys and inserting a lead damp proof course, substantial renewal of leadwork, overhauling and possibly some stripping and re- slating of the slated pitches, repairs and repainting of windows and the installation of an extensive lightning conductor system. Some of the external pipes for bathrooms were removed either at this time or more recently.

There is some evidence that windows on the south-west side have been replaced, either during the early part of the 20th century or after the National Museums alterations of 1977 onwards. Most of the windows on this side have horns on their upper sashes which is not the case with all of the other windows on the building. There is evidence of considerable window repair and replacement in the 1977 work. Some of this has been carried out quite crudely notably on the bedroom windows.

Most of the alterations to the interior for the National Museums presentation were minor. The significant interiors of the principal apartments around the stair hall were suitable for the display of period costume without alteration. Some alterations were made in order to help with visitor circulation. The cutting of a new door between the dining room and drawing room could possibly have been carried out at this stage or might have been an earlier alteration. Doors were formed between the bedrooms in the main block and a mock bathroom was created. In each case, the work has been done with care and so that the alteration is not immediately obvious and does not detract from the significance of the building.

The main alteration was at principal floor level in the service wing. The area of storage and servery rooms associated with the dining room was altered to form the shop and reception area for the museum. In the basement area, some low significance partitions were removed in order to form the cafe and server with associated toilets.

A public building needed some upgrading of escape routes for fire escape. This was achieved by converting one of the windows on the south-west side at basement level into a door. On the entrance front of the building the stairs to the front door were removed and replaced

Shambellie House: Options Appraisal 27 March 2014

with a ramp and stairs to a different design and a chair lift was provided at the entrance stair.

5.3 Cultural significance of Shambellie House Shambellie is significant as a record of the kind of development and use of a mid-19th century Scottish country estate. Records of the estate from this date and also of the owner’s correspondence with the architect add to this historical record. The House is also significant as a work by one of Scotland's most important 19th century architects. It is a relatively minor house by Bryce, but shows him at the height of his career and is a modest but characteristic example of his use of the Scottish Baronial style. The interiors are of less significance than the exterior and might not be entirely to the design of Bryce. They are, however, well detailed examples of 19th century country house interiors and should be respected.

Although most of the collection associated and gifted with the House is no longer in the House, it would be more relevant if returned to the building. The building and the collection have a historical link which cannot so easily be interpreted or understood if they are separated.

The building has considerable aesthetic significance. It is a good quality work of architecture set in its own highly attractive grounds. It is successful in making an impression in all directions but particularly in the views from the south-east as the visitor approaches along the driveway. The architectural design of the building is beautiful and elegant. Some of the paring back of the design to meet the client's budget possibly enhances the architectural quality of the House and its setting.

The windows have been painted off-white. They were originally red and the quality of a dark colour is shown on old photographs. The choice of a lighter colour in the 20th century is not particularly significant and the significance of the exterior would be enhanced if the windows were repainted in their original colour. The original colour can be determined by scraping back and removing small areas of paint for instance on the upstairs windows.

The internal quality of the building also has aesthetic significance. This is enhanced by the National Museums’ decision to use colours and papers which are reasonably authentic in Victorian character. The aesthetic significance of the interior would be even further enhanced by more accurate restoration of internal finishes based on photographic evidence and physical investigation of timber and plaster surfaces.

The social significance of the building is relatively minimal. The building has been a private country house for most of its history and there has been little public access until recently. The building has significance to the people who have worked there during the Museum

Shambellie House: Options Appraisal 28 March 2014

period and, in particular, to local volunteers who have helped the National Museums in presenting Shambellie as a museum of costume. The condition of the building is good. The repair work carried out by NMS was done to a high standard.

Shambellie House: Options Appraisal 29 March 2014

6. Current condition Shambellie House is generally in very good condition. Marked-up condition and repair drawings by Simpson & Brown are at Appendices B and C. External repairs to the walls and roofs are estimated to cost £60,000 and are considered non-urgent. A detailed breakdown by Armour Construction Consultants is attached at Appendix E.

6.1 Summary of condition The roofs are in excellent condition because almost all the leadwork has been renewed during the repair work carried out by NMS. Unfortunately, the renewal of lead in the pitched valley gutters did not include the inclusion of the sacrificial flashings that are essential to counter the effects of acidic run-off from lichen and mosses on the roof. Without these, the leadwork cannot last the 100 years that its detailing is intended to last.

Slate roofs and rainwater goods

Sacrificial flashings should be fitted to all of the points where slating runs off to leadwork on the entire roof. This will not be particularly expensive and it is worth doing to ensure that the leadwork can achieve its expected life.

The slating is generally in fair condition. On the inward facing pitches there is a need for some overhauling. Some of the lead in the central gutter appears to be in poorer condition. As a cost allowance, some of this lead has been allowed for replacement.

Replacement of the lead gutter to the north of the porch has allowed been allowed for. In each case, however, further inspection is needed. It is likely that lead can be salvaged and retained in position. If there are small holes they could have lead burnt patches. This work is included solely to make sure that the cost plan is robust.

The condition of the walls is generally fair. There are a few areas of open joints which need to be repointed using a lime-based mortar. This is to be expected in a building last pointed over 30 years ago. Bryce chose a construction method of sandstone dressings around

Shambellie House: Options Appraisal 30 March 2014

windows with metamorphic blocks like granite making up the main walling. The combination of soft sandstone and impervious rock is frequently a cause of water ingress in buildings of this construction. During rain, water runs down the surface of the rock used for the walling and then soaks into the permeable sandstone around the openings, particularly at the lintels.

The problem is often exacerbated by a mason misdiagnosing the cause of water ingress and pointing the masonry using cement mortar. Cement mortar is a brittle material and will contain many hairline cracks. The cracks are so narrow that they tend to catch water which is running down the front surface of the rock and the cement. Water can be driven through these cracks by the pressure of the prevailing wind and this is usually a problem associated with south and west facing walls. Once water is drawn through the cracks, further water is dragged through behind it by capillary action.

Cement pointing between granite and sandstone Areas of dampness to sandstone

The normal methods to counter this are to: • repoint areas of the masonry using a lime-based mortar to maximise the evaporation areas • introduce lead flashings to protect the upper edge of sandstone lintels, and • manage water on the inside so that it can be ventilated away without damaging plaster finishes.

The use of quite crudely inserted lead flashings above two of the lintels on the southwest side suggests that water ingress by this process has been a problem in the past. This might also be the reason that windows have decayed to the point of needing replacement on the south-west side but not on the other sides. The initiative taken in the 1970s included this introduction of lead flashings over these two lintels. It is very unlikely that a sufficiently soft lime mortar that was free of cement was used at that time however.

The lead that has been introduced over the lintels on the south west elevation and the rebuilding of the chimneys over lead damp proof courses (DPC) indicates that the problem of water ingress through the masonry was taken seriously in the late 1970s. Judging by the

Shambellie House: Options Appraisal 31 March 2014

extent of repair, it is likely that there was a greater amount of water ingress showing in the interiors than there is now.

The inspection of the interior showed there are only two areas of water damage: • the south west wall of the bedroom over the entrance stair has minor staining on the coomb, and • the second floor room in the service block has more pronounced water staining on the inside face of the gable.

Both of these areas seem to indicate water ingress through the walls, rather than through the roof.

Lead flashing above lintels South west elevation

One of the problems with water ingress through granite walls is the difficulty of drying. Once water has got into the wall, it cannot evaporate through the outer surfaces. Often the water can remain in the wall for a long time, say 10 to 15 years, and only slowly dries out on the inner face.

Since the room at the top of the service block is now a tank room, and not used for occupation, it is possible that it has not been repainted for 20 or 30 years and so decay could be a record of past water ingress which has been solved by the repointing of the gable and the rebuilding of the chimney to include a lead DPC. Some pointing has been allowed on this gable in the schedule of repairs associated with this Options Appraisal, in case it is found to have open joints which are allowing water in at this position. One way of drying

Shambellie House: Options Appraisal 32 March 2014

out this wall might be to break out the mortar which contains cement and repoint an area with lime mortar so that the wall can at least dry out through the external mortar joint.

It is possible that there have been other areas of water penetration. This possibility is increased by the nature of the construction of the external wall. However, if the water penetration is minor and if there is sufficient ventilation to ensure that it can be conducted away from the inner face of the outside walls without decaying timber, then this is likely to require only monitoring, rather than repair work.

There are some parts of the building where water ingress could have caused long-term decay. Often, Victorian buildings had timber lintels over the inner part of window openings. It is not yet known if this is the case at Shambellie - it is a detail that is common in many buildings by Burn and so it probably is also a detail used by Bryce. The windows which would be most vulnerable to timber decay in the timber lintels would be on the south western side – the side facing the prevailing wind. It would be worth doing some exploratory opening-up to the windows on the main and bedroom floors and testing the timber lintels near to the wall using a bore system, to determine if there is any rot in the

upper side or at the core of the timber.

6.2 Conservation approach As a historic building constructed of traditional materials, listed at category B, the approach to any works of repair or alteration should follow best practice and the principles set out in the Scottish Historic Environment Policy (see Section 7). All work should take into account the special significance of the building.

Alterations should only be necessary for the viability of the proposed new use, and should preferably be kept to the minimum needed to facilitate the new use. New work should be carried out using materials of a suitable quality and character. The setting of the House within landscaped grounds should also be maintained and any new development should be carefully considered and designed to respect views to and from the House. Not only will this approach conserve a historic building, but it will ensure the attractive qualities of Shambellie House are preserved and maintained, thus keeping the value of the asset.

All repairs to the building fabric should be carried out on a like-for-like basis. Where this is not possible, perhaps because of a lack of available matching material, a close match will be selected. This is most likely in the case of stone indentation, particularly where the red sandstone sills and jambs are defective. If these require to be replaced with new stone indents, we recommend a stone sample is taken and identified by the British Geological Survey in order to make a judgement on whether it provides a close match, both in terms of colour and porosity.

Shambellie House: Options Appraisal 33 March 2014

Repairs to the pointing have been carried out over a number of phases during the history of the building. Some of these repairs have been carried out in cement. Although the masonry of the building is impervious granite, the cement repairs appear to be causing some problems where moisture is driven out through the soft sandstone. Aesthetically, the old mortar repairs are not a good match and vary in quality and colour, however this is less important to remedy than the areas where damage is being caused, principally at the junctures between granite and sandstone.

All future repairs to pointing, or pointing of fresh cracks, should be carried out using an appropriate lime mix. Advice should be sought from a conservation architect, surveyor or contractor experienced in working with traditional masonry.

Shambellie House: Options Appraisal 34 March 2014

7. Planning framework Any options considered for the re-use of Shambellie House must take into consideration local, regional and national planning objectives and development plans. Shambellie House is a Category B listed building, meaning it has been identified by Historic Scotland (HS) as a building of ‘regional or more than local importance, or [a] major example of some particular period, style or building type which may have been altered’2. This will be important when placing it within the planning context, not least because listed building consent may become a consideration, dependent upon the scale of any alterations.

This section considers the policies of both national and local statutory bodies, including HS and D&GC, and how the principles outlined in the guidance should be adopted in relation to any future options for Shambellie House.

7.1 The Scottish Historic Environment Policy In December 2011 HS, on behalf of the Scottish Ministers, published the Scottish Historic Environment Policy (SHEP) to address the challenge for the sustainable management of the historic environment in Scotland. The SHEP identifies the key characteristics of what makes up Scotland’s historic environment and the boundaries within which change can be made to elements of the historic environment, so that it enhances, rather than diminishes, historic character.

One of the most pertinent points outlined by the SHEP for the proposed re-use of Shambellie House is that the Scottish Ministers believe ‘that the historic environment should be valued as an asset, rather than thought of as a barrier to development’. Equally important is the point that follows, where the SHEP states that the ‘protection of the historic environment is not about preventing change’ provided that it is ‘managed intelligently and with understanding, to achieve the best outcome for the historic environment and for the people of Scotland’, and that decision regarding change often ‘have to recognise economic realities’3. These points support the adaptive reuse of Shambellie House, especially to a use that will serve the local community of Shambellie and contribute to the local and regional economy.

The SHEP outlines three key outcomes that Scottish Ministers are determined to achieve for Scotland’s historic environment, which inform the SHEP’s conservation principles. These are: 1. That the historic environment is cared for, protected and enhanced for the benefit of [Scotland’s] own and future generations. 2. To secure greater economic benefits from the historic environment.

2 www.historic-scotland.gov.uk/index/heritage/historicandlistedbuildings/listing.htm. 3 Historic Scotland, Scottish Historic Environment Policy December 2011.

Shambellie House: Options Appraisal 35 March 2014

3. That the people of Scotland and visitors [to Scotland] value, understand and enjoy the historic environment.

The adaptive options for re-use of Shambellie House will help to achieve these key outcomes. Without an option for re-use, Shambellie is at risk of deterioration, through both weather damage and the risk of vandalism. In addition, a number of the options outlined in this report will look to incorporate community use and/or public access, giving the building a continued legacy of public benefit following on from its past as a museum. These options will also look to bring jobs and increased tourist footfall to the area, which in turn should provide economic benefits to local residents and businesses.

The key outcomes of the SHEP identified above go on to inform the key principles of the Scottish Ministers in relation to the historic environment. The first set of principles outlines the policies of the Scottish Ministers. These are that: 1. Actions taken in respect of Scotland’s historic environment should secure its conservation and management for the benefit and enjoyment of present and future generations. 2. There should be a presumption in favour of preservation of individual historic assets and also the pattern of the wider historic environment; no historic asset should be lost or radically changed without adequate consideration of its significance and of the means available to manage and conserve it. 3. Scotland’s historic environment should be managed in a sustainable way, recognising that it is a social, cultural, economic and environmental resource of great value. 4. All of the people of Scotland should be able to enjoy, appreciate, learn from and understand Scotland’s historic environment, and be assisted in that through access, research, knowledge, information and education and proactive conservation investment, without compromise to cultural significance.

The desire to maximise the benefit and enjoyment of present and future generations in the New Abbey and wider Dumfries & Galloway area from the re-use of Shambellie House has led to the decision to focus on a number of options in this report that consider public access, either through a high-end self-catering holiday let or a centre for residential courses.

Any alterations made to the House for these schemes should consider its significance, particularly as much of its unique character stems from the fact that a relatively small amount of alterations have been made to its fabric since construction. Any conversion should also recognise that Shambellie has a special social and cultural history through its time as the National Museum of Costume, which links back to the legacy of the Stewart family, in particular Charles Stewart and his collection. Finally, opening up all or part of the House for public use will enable everyone to enjoy part of Scotland’s historic environment.

Shambellie House: Options Appraisal 36 March 2014

The SHEP then outlines principles on the conservation of historic assets. The conservation of any part of Scotland’s historic environment should: 1. Be based upon sound knowledge and understanding of the particular site, building, monument or landscape, and of its wider context. 2. Be founded on full awareness and consideration of its cultural significance and all phases of its development. 3. Be carried out in accordance with a conservation plan, which brings together all of the information and research necessary to guide the proposed action. 4. Ensure that what is to be conserved is properly recorded before and, if necessary, during and after work. 5. Make provision for recording where continued preservation is no longer possible or where loss is taking place through change or on-going decay, and ensure that all records are retained in readily accessible archives. 6. Incur only the minimum degree of intervention considered appropriate by the relevant authority for the type of site, building, monument or landscape. 7. Use appropriate technical knowledge, materials, skills and methods of working. 8. Have regard to retaining, or where appropriate enhancing, the setting of the site, monument, building or landscape. 9. Ensure that, where change is proposed, it is appropriate, carefully considered, authoritatively based, properly planned and executed, and (if appropriate) reversible. 10. Include effective arrangements for monitoring the condition and safety of the historic asset and for delivery of routine maintenance and good housekeeping. 11. Take account of the rich biodiversity of many historic sites, buildings and landscapes.

Any options for the re-use of Shambellie House should be assessed against the above principles as the first step in determining the understanding of both the history of the site and the need for the proposed options. In addition, the end-user should work with Historic Scotland and the Council to ensure the proposed option fits within the planning framework they have produced.

Of particular importance to Shambellie House from these conservation principles is point 11, as the House sits within the Nith Estuary National Scenic Area and the Solway Coast Regional Scenic Area. These Scenic Areas were designated by the Council for their outstanding beauty and in order to protect them as part of Scotland’s natural heritage. Any project for Shambellie House should consider the relevant Scenic Area Management Strategies, which can be found on the Council’s website4.

4 www.dumgal.gov.uk/index.aspx?articleid=1991 & dumgal.gov.uk/CHttpHandler.ashx?id=12169&p=0.

Shambellie House: Options Appraisal 37 March 2014

7.2 Dumfries & Galloway Council’s planning policies The Council is currently producing the Dumfries & Galloway Local Development Plan (LDP). The draft version of the LDP was published in January 2013 and was subject to a period of public consultation in early 2013. Now under review following the public consultation, D&GC are hoping to have the LDP approved in Summer 2014.

Any proposals for the re-use of Shambellie House that will require D&GC approval will depend upon which plan they are being assessed against. However Carolyn Howarth, Senior Planner in Development Planning at D&GC, spoke at the PRT-organised Stakeholder Workshop in October 2013 and indicated that aspects against which proposals for Shambellie would be measured are unlikely to change significantly following the adoption of the new LDP5.

The draft version of D&GC’s new LDP supports the content of the SHEP and states that the historic environment can accommodate change, ‘providing it can be carefully and sensitively managed’ and that successful adaptive re-use can support and regenerate communities and engender community spirit, ‘giving a sense of place and identity and helping to create a place where people want to live and work’6. In its overarching policy for the historic environment, the LDP states that development proposals should:

“protect and/or enhance the character, appearance and setting of the region’s rich historic environment principally by ensuring they are sympathetic to nearby buildings, sites and features, integrate well and complement the surrounding area”7.

This message was supported by Janice Kay, Area Planning Manager from D&GC, who also spoke at the Stakeholder Workshop, and confirmed that the Council’s planning team fully supported appropriate developments in the area, particularly those that incorporate imaginative uses and designs. In addition, the Council would look at any re-use scheme as favourably against its policies and would particularly welcome a scheme that contributes to economic growth, especially one that would create jobs and help to boost the overall spend in New Abbey and the surrounding area.

In addition to the overarching policies of D&GC as set out in the draft LDP, both Janice and Carolyn noted a number of other pertinent points that would affect Shambellie House: • As well as sitting within National and Regional Scenic Areas, Shambellie also sits adjacent to a conservation area, which any new development must respect; • D&GC is keen to see as much of the woodland on site maintained as much as possible.

5 A copy of the report resulting from the Stakeholder Workshop can be found at Appendix F. 6 Dumfries & Galloway Council, Proposed Local Development Plan January 2013. 7 Ibid.

Shambellie House: Options Appraisal 38 March 2014

• In the new LDP, the Shambellie House site sits outside the development boundary for the village, and therefore D&GC will need to be consulted fully with regards to any new build proposed on site; • Any new scheme would be likely to require planning permission; any major alterations, such as an interior lift, would require listed building consent (like-for-like repair work would be exempt from this); • D&GC do not see a change of use application as being an issue; and • D&GC would need to look closely at the issue of access to the site, depending upon the proposed change of use, as the entrance is partly concealed and leads onto an ‘A’ road.

The planners who spoke at PRT’s Stakeholder Workshop made clear that, from the planning perspective, there were no options for the future of Shambellie House that should be ruled out at this stage. The team strongly encouraged on-going communication with Development Planning to ensure a smooth process.

Shambellie House: Options Appraisal 39 March 2014

8. Options for reuse As part of the process to explore options for reuse, and to engage the community and key stakeholders, PRT organised the Stakeholder Workshop held in New Abbey Village Hall on 3 October 2013. The workshop began with presentations on the background, context and key information relating to the Shambellie House, New Abbey and the wider area, the significance of the building, and potential constraints and opportunities. The participants then worked in groups through a Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis, before developing ideas on a number of options for reuse. A full report of the Workshop is at Appendix F.

Based on the results of the workshop, three broad options emerged: • A high-end self-catering holiday let; • A centre for residential leisure courses; and • A private residence.

Taking each of these in turn, PRT’s team has researched and developed variations under the main use headings and set these out as potential options to be assessed:

• Option 1a High-end self-catering holiday let with community use in the basement • Option 1b High-end self-catering holiday let with two separate apartments

• Option 2a Residential Cook School • Option 2b Residential Centre for art/craft or field/outdoor activities

• Option 3a Private House • Option 3b Two Private Houses

Shambellie House: Options Appraisal 40 March 2014

Existing site plan of House, lodge, garden and former car park

8.1 Description of options Drawings for each option are at Appendix D and should be read with the following description.

8.1.1 Option 1a (Holiday Let & Community) The first self-catering option has the principal rooms on the elevated ground floor retained as such - library/sitting room, drawing room and dining room – with a new kitchen in place of the museum shop. Five bedrooms are on the first floor, with bathroom/en-suites. This configuration would create a holiday let sleeping 10 people. The attic floor is shown as storage space. The basement is converted to flexible space for community use and has three large rooms that could be used for exhibitions and workshops, with an additional common room or tea room. It also has a kitchen, stores and bike shed. Overall, the alterations to the interior are minor, with the basement having some partition walls removed to open up the space.

8.1.2 Option 1b (Holiday Let - 2 Apartments) The second self-catering option has the same configuration other than the basement which is shown converted to a self-contained apartment with four bedrooms, a small kitchen, sitting room and storage. This apartment would sleep seven people. If the two were booked together 17 people could be accommodated. Alterations are minimal.

8.1.3 Option 2a (Cook School)

Shambellie House: Options Appraisal 41 March 2014

Creating a residential cook school requires more considerable alterations. With the change of use from residential dwelling to public use, building regulations stipulate that where at all possible the building must be fully accessible to everyone so, in this option, a lift would be installed to provide full access between all four floors. In addition, two high-end kitchens are installed to enable teaching and preparation to take place. This option has 11 en-suite bedrooms sleeping a maximum of 19 people. The principal rooms are retained and used for their original purpose. There are also toilets and stores.

8.1.4 Option 2b (Art/Outdoor Centre) Similarly, this option has a lift between all floors. It has more space given over to group activity, so there is workshop or interpretation/study space with changing room and lockers in the basement. Also at this level is a kitchen for communal cooking with a dining space, laundry, toilets and bike stores. On the ground floor again the principal rooms are retained. The former museum shop and adjacent room are shown opened up as a workshop room, but this could equally be an office. Seven en-suite bedrooms sleeping a maximum of 13 people are on the first and attic floors.

8.1.5 Option 3a (Private House) This option shows Shambellie House modernised and upgraded to become a single family house with three principal rooms plus a family kitchen and breakfast room on the ground floor. Above are five bedrooms, most with en-suites, then storage in the attic. In the basement the space is used for a bedroom suite with separate access to the garden; a cinema, games room, larder, utility room, a gym, various stores and a double garage. Alterations are relatively minor.

8.1.6 Option 3b (Two Private Houses) The last option shows the House split into two separate dwellings. The spiral stair gives access between the four floors of one house, making use of the service wing. It has four double bedrooms, a sitting room, study and a kitchen/dining room with utility and stores at basement level. The other house makes use of the principal rooms, with the library converted to a kitchen, three en-suite bedrooms on the first floor and in the basement a further two bedrooms, further public room and stores. Alterations are again relatively minor.

8.2 Pre-application enquiry response As part of the options appraisal, a pre-application consultation request was made to the Council’s Planning and Environment department in November 2013, based on the above uses. Proposed drawings were submitted and assessed as ‘internal alterations and change of use of museum, development of housing in former car park at Shambellie House, New Abbey’.

Shambellie House: Options Appraisal 42 March 2014

In their response of 16 December 2013, the Council stated that the change of use of the property to a dwelling house for either private or tourist use would be unlikely to conflict with development plan policy and the principle is likely to be supported. It is unlikely that community use in part of the building would present issues either. Therefore, in terms of Options 1a (Holiday Let & Community), 1b (Holiday Let - 2 Apartments), 3a (Private House) and 3b (Two Private Houses), the Council has raised no significant issues at this stage in terms of planning or listed building consent, as long as no decorative features of interest are affected by the internal alterations.

With Options 2a (Cook School) and 2b (Two Private Houses), there are no major issues raised with change of use to residential accommodation, aside from access and parking, as the site would be subject to an intensification of use. It is likely that access arrangements would need to be upgraded and the site assessed for sufficiency of car parking space.

It is also noted that the assessment of the economic benefits that the re-use of the listed building could bring is a material planning consideration: ‘Generally, the Council would look upon proposals for the re-use of this property positively, especially where the economic benefits that support the building's retention are evident. Once a use has been decided, the Council would be willing to assist and advise further.’

The full planning response is at Appendix G.

8.3 Development within the grounds The site of the former museum car park has been investigated for development, potentially to support the restoration of the listed building if need be through sale, lease or rental of the newbuild properties. Two schemes have been drawn up (see Appendix D) based around a courtyard plan using a traditional design language. These comprise five one-and-a-half storey dwellings, plus an alternative option of creating a separate ‘barn’ for artists’ studios or workshops in place of two of the cottages.

The scale, appearance and design of these as proposed are in keeping with the location and not likely to conflict with the setting of Shambellie House. The site is close to the boundary of the New Abbey Conservation Area and currently within the settlement boundary. Policy supports the provision of tourist accommodation in this location with preference given to developments that are physically associated with existing settlements.

With regard to the artists’ studios, the Council is of the same view, that they should be of a high quality in design, scale and appearance and that development of the site will not adversely affect any adjoining properties or other land uses.

Shambellie House: Options Appraisal 43 March 2014

Scheme for 5 dwellings in former museum car park

This Options Appraisal and its financial analysis models do not take into account the potential effect of development within the grounds. However, this initial work demonstrates that it may be feasible to deliver some development in the site of the car park in a way that is sensitive to the overall site. If desirable, this should be further investigated to determine how it may support the overall viability of the scheme.

8.4 The Lodge The existing gate lodge is empty and in need of repair and refurbishment. This small building is located at the entrance to the drive on the main road and is in similar baronial style to the House. The Lodge was extended in 1991, doubling the accommodation, in a style to match the original architecture. The building provides scope for a small 2-bedroom dwelling.

Internally, no features of interest survive and, subject to consents, upgrading and return to a dwelling should not present any issues. Again, vehicular access would be a consideration in any intensification of use of the site.

Shambellie House: Options Appraisal 44 March 2014

Shambellie Lodge Interior

Upgrading of the Lodge to become a self-contained dwelling presents a further opportunity for reuse of the site as a whole. The Lodge has the potential to be used as accommodation for a house manager or as a separate holiday let. This has not been included as part of the financial appraisal, however, the cost of full refurbishment is estimated to be £85,000 (see Appendix E).

Shambellie House: Options Appraisal 45 March 2014

9. Market analysis 9.1 Options 1a (Holiday Let & Community) & 1b (Holiday Let - 2 Apartments) 9.1.1 High-end self-catering in historic buildings The high-end self-catering holiday market is a growing one and, according to D&G Council, there is demand in the area for larger properties. Companies such as The Landmark Trust and The Vivat Trust specialise in saving old buildings at risk and turning them into unique and unusual holiday accommodation, respecting the historic building and providing a sustainable new use.

The company, Large Holiday Houses, marketing properties mainly in Scotland, has five properties sleeping from 10 to 22 people in Dumfries & Galloway. Berryburn in Lockerbie is tastefully decorated, sleeps 14 and costs between £1,350 and £2,500 per week. Lagafater, a remote Edwardian lodge near New Luce sleeping 16 people, is full of authentic character, largely ‘un-modernised’ and furnished in the traditional country house style. Rates are £1,200 to £2,500 per week.

One of the unique selling points of these companies is that the interiors are decorated with the character of the property in mind and using antique or second-hand furniture, with a strong ‘house style’ presented by the companies. This is further enhanced by the high quality of photography and marketing and the emphasis on historic character promoted particularly by the Vivat and Landmark Trusts.

9.1.2 Mainstream self-catering Cottages4you, a leader in the field of more mainstream self-catering holiday lets, markets 19 properties sleeping between 10 and 16 people in Dumfries & Galloway. Not all of these are high-end historic properties, though a good proportion is in old houses. The quality of interior décor is noticeably lower and alterations to some properties have been carried out that are not completely in-keeping with the age or style of the building.

In New Abbey parish itself, Kirkconnell House sleeps 16 and is a historic property located outside the village. The building has significant charm and character, being a multi-period group of adjoining dwellings originating around a 16th century tower with 18th century additions. The House can be rented for £1,800 to £2,100 per week. Internally, the character and décor of Kirkconnell House are of a different style than that found with Landmark or Vivat.

Cottages and Castles has three properties accommodating 10 to 12 people. These are all traditional 19th century houses and all are comfortable, well-presented family homes, but none focus on traditional character particularly.

Shambellie House: Options Appraisal 46 March 2014

Kirkconnell House

Kirconnell House interior

9.1.3 The Landmark Trust The Landmark Trust was founded nearly fifty years ago with the aim of rescuing the smaller historic houses that would not be taken on by either the National Trust or Government agencies. The charity now has nearly 200 historic properties that it lets out as holiday accommodation across the UK and Europe. Landmark seldom purchases the buildings they take on, choosing instead to lease them from owners. Landmark’s aims are ‘to save places and to promote the public enjoyment of historic buildings’. Landmark is also committed to keeping traditional skills alive through repairing historic buildings using skilled crafts and tradespeople.

Landmark currently has three properties in Dumfries & Galloway: Glenmalloch Lodge, Newton Stewart, sleeping 2 people; Old Place of Monreith, Portwilliam, a tower house sleeping 8; and Castle of Park, Glenluce, another tower house for 7 people.

The largest property Landmark offers is Gargunnock House, a country house near Stirling that sleeps 16. Prices range from £1,581 for 7 nights to £5,603 for 5 nights over Hogmanay. Next, two properties in Devon sleep 15 and 14 people. Two other large properties in

Shambellie House: Options Appraisal 47 March 2014

Scotland sleep 13: Auchinleck House, Ochiltree, East Ayrshire, and Saddell House on the Mull of Kintyre. Auchinleck rates range between £1,458 for 7 nights in November and £4,165 for 5 nights over Hogmanay. Similar booking periods for Saddell House cost £944 up to £3,853.

Castle of Park Castle of Park

Auchinleck House Saddell House

Simon Verdon, Head of Business Operations at Landmark, was consulted on the potential of Shambellie. Simon expressed interest in visiting Shambellie House next March when he will be in the area. While he was keen to consider the House as a potential Landmark property, he did explain that there would be a few concerns from Landmark’s perspective. These are: • Landmark is not keen to take on larger properties as they require more maintenance and cleaning and receive more wear and tear through the parties and entertaining that large groups tend to have; • The fact that Shambellie does not have the architectural ‘wow factor’ that the majority of Landmark properties do; • The gardens would be expensive to maintain; • He feels the region is not as attractive to holiday-makers as the Borders or the Highlands so may not do very well in terms of bookings; and • Community use in the basement would conflict with holiday use above.

Shambellie House: Options Appraisal 48 March 2014

9.1.4 The Vivat Trust The Vivat Trust is also a charity and describes itself as ‘an active national building preservation trust’. Founded in 1981, the charity now looks after approximately 30 properties in the UK, six of which are in Scotland, mainly in the central belt. The closest Vivat property to New Abbey is Stonegarthside Hall, a 17th century house in Cumbria, just a mile over the Scottish Border. This is the largest Vivat property and sleeps 14. Rates for one week range from £1,430 to £2,778. This property is privately owned, but managed and marketed by Vivat. Vivat is also working on the restoration of Earlston Castle in Dalry, Dumfries & Galloway, a small L-plan tower house of 16th or 17th century origin.

Stonegarthside Hall Stonegarthside Hall interior

In Melrose, in the Scottish Borders, Cloister House is owned by Historic Scotland but managed and marketed by The Vivat Trust as a property that sleeps 8. Cloister House is a traditional Georgian building in the grounds of Melrose Abbey, originally built as the manse, and located in the bustling abbey town with its scenic surroundings. The elegant interior of the House is well-preserved and it is furnished in-keeping with the spirit of the building and the historic features. The House is available for between £894 and £1629 per week. This example was used as a relevant comparator in the financial analysis section.

Laura Norris, Vivat’s Director, and Simon Green, a Vivat Trustee and architectural historian at RCAHMS, were consulted on Shambellie’s future. Simon attended the Stakeholder Workshop, as both a representative of Vivat and RCAHMS, and visited Shambellie House. Both Laura and Simon are enthusiastic about the potential of Shambellie House for the Vivat Trust and have discussed their thoughts.

Laura is keen on the idea of community use in the basement as a way of using the space creatively and engaging local people. This kind of use may unlock funding, most likely from the Heritage Lottery Fund, to help Vivat with the capital costs or even with acquisition costs. Laura did not feel that community use would be incompatible.

Shambellie House: Options Appraisal 49 March 2014

The large size of the converted property was not an issue and Laura was happy with the proposed plan for conversion. Laura explained that Vivat takes part in heritage open days, making their properties accessible to the public for a few days a year.

Cloister House, Melrose Cloister House, interior

9.1.5 The National Trust for Scotland Finally, there is The National Trust for Scotland (NTS), an independent conservation charity that looks after our cultural, natural and built heritage. As well as looking after 130 properties of national significance open to visitors, NTS manages 72 holiday properties. Their collection includes a range of luxury holiday properties accommodating up to 18 people in historic buildings furnished and decorated to a high-standard. Gunsgreen House and Harmony, both in the Scottish Borders, are two examples sleeping 11 and 12 respectively.

It would be worth speaking to NTS if the high-end self-catering option is to be considered further.

9.1.6 Comparison of self-catering properties The table below gives an indication of where Shambellie House could sit in relation to other comparable holiday lets in Scotland. Detailed figures were gathered where available and are shown in the table for five of the properties. The others are included for comparison in terms of size, prices and character of property. The company Large Holiday Houses suggested Shambellie House could expect to see an occupancy rate of 50%.

Shambellie House: Options Appraisal 50 March 2014

Property Sleeps Wk Wk Internal High- Company Wks / Miles high low historic end year from £ £ character 2013 Dumf /period decor ries Gargunnock 16 1638 3067 High Yes Landmark 97 House Trust Lagafater 16 1200 2500 High Yes Large Holiday 77 Houses Kirkconnell 15 1422 2620 Low No Cottages 8 House 4you Berryburn 14 1350 2500 Medium Yes Large Holiday 22 Houses Stonegarth- 14 1430 1964 Medium Yes Vivat Trust 20.8 40 side Hall (40%) Saddell 13 979 4420 Medium Yes Landmark 34.8 120 House Trust (67%) Auchinleck 13 1458 3608 High Yes Landmark 47 House Trust Harmony 12 1400 2310 Medium Yes National 19 63 Trust for (36.4 Scotland %) Cloister 8 894 1629 Medium Yes Vivat Trust 26 63 House (50%) Old Place 8 641 1627 High Yes Landmark 60 of Monreith Trust Castle of 7 662 2013 High Yes Landmark 60 Park Trust Tower of 7 822 1255 High Yes Vivat Trust 31.2 60 Hallbar (60%)

9.1.7 Establishing a new community trust Option 1a sets aside space in the basement of the House to flexible space for community use, with a holiday let on the ground and first floors. By setting aside this space for the community, it will achieve a key aim of Scottish Government’s desire to maximise the building’s contribution to the life of the local community, whilst also making the project economically viable (demonstrated below in Section 12). This also reflects the desires of the Stewart family to see the House accessible to the public as per the original gift to the nation.

As part of the Options Appraisal, we spoke to Ian McClumpha, Chairman of the Robert the Bruce Commemoration Trust, to gauge interest in using the potential community space at Shambellie. Since the Trust’s formation in 2000 the group has created the Bruce Trail, drawing together all the places in Dumfries and Galloway with strong connections to King

Shambellie House: Options Appraisal 51 March 2014

Robert the Bruce in the late 13th and early 14th century. The trail extends to 30 sites and was officially launching in 2009. The Trust’s long-term aim is to create an innovative, living history visitor centre in Dumfriesshire dedicated to Scotland’s hero king.

In its search for a suitable venue for a visitor centre, the Trust visited Shambellie House in 2013 and is therefore aware of the layout, location and character of the building. In discussion with them, the Trust explained they were seeking to develop a facility that could attain worldwide recognition as a renowned tourist attraction. The centre would have four key purposes: education, entertainment; heritage; and regeneration. The centre would need to accommodate display of artefacts including weaponry, presentations and lectures; facilities for families; costumed re-enactments; outside recreation; weddings and conferences; a café and shop; and would provide a number of jobs and bring economic regeneration to the area.

While the Trust felt they were prepared to ‘start small’ and work up to a large centre as their project develops, following discussion and a review of our Stakeholder Workshop by Trustees, Mr McClumpha stated that Shambellie was not of interest to the Trust and that a visitor centre in the lower ground floor would be ineffective. The Trust felt it would suffer from the same problems the Costume Museum suffered and would therefore not be a viable proposition. The Trust withdrew their interest in Shambellie in November 2013.

With no other known established charitable trust in the immediate area, looking to take on the space at Shambellie, a new trust may need to be established, utilising the high level of enthusiasm for the project amongst the local community at the Stakeholder Workshop. The first step in developing this would be to arrange a full day follow-up event at Shambellie House, involving members of the community and other relevant stakeholders, to present the findings of this Options Appraisal and to present the opportunities of the community space to local people. Ideas for the end use of the community space would be discussed, and attendees would be encouraged to express interest in becoming involved and being part of a local trust.

Following the event, a Shambellie House Steering Group could be formed initially, with representatives from the local community, potential operators of the holiday let, a representative from D&GC, Shambellie Estate, and PRT assisting. The Group would not have a legally binding structure at this stage, but would set out the working relationship required to move the project forward and reach key milestones in the development of community use.

The aim would be to create a strategy for the community space, and agree on a formal charitable trust model to take on a lease of the basement space at the right stage with a clear and viable purpose. It would be important that, whilst PRT and D&GC will be involved

Shambellie House: Options Appraisal 52 March 2014

to provide advice on governance, skills and legal issues, it would be the community driving the project forward, and it would be useful to identify at least one or two community champions to lead the process.

9.1.8 Relevance for Shambellie House Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) The market for high-end self-catering is strong. Consumers are more demanding than 10 or 20 years ago, and with the recent ‘staycation’ trend, the market for distinctive properties has grown. Shambellie House easily fits the mould of the type of property and location attractive to consumers.

The involvement of an operator such as the Landmark or Vivat Trust could bring both local and wider community benefits. In the local area, the presence of a charitable operator will create direct employment due to the need for a housekeeper and gardener, and will also boost indirect employment and the economy in the area through the increase in visitors accessing local services.

In addition, the charitable objects of such an operator sees any surpluses generated re- invested in the rescue and sensitive restoration of other historic buildings elsewhere in Scotland and throughout the United Kingdom. This is the mission of organisations such as Landmark and Vivat.

Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) would therefore be worth considering as viable end uses. Option 1b may be less attractive because the House would be subdivided and shared. The basement property may be likely to struggle for bookings, being the less attractive of the two, significantly smaller and without large principal rooms. The lack of historic features in the basement, originally the service area of the House, reduces its attractiveness, as does the lack of open views from that level. However, both properties could potentially be booked out together for groups of up to 17 people.

Through Option 1a (Holiday Let & Community), community use may open the door to a range of public funding options, such as the Heritage Lottery Fund, who may contribute to the overall funding package where clear public access and benefits can be delivered by the project, making the option of taking on the whole site more viable to a charity with limited funds. The community use would need to be carefully considered, so as not to adversely impact on the enjoyment of holiday guests. It may be necessary to manage the use so that it is restricted to the daytime, for example.

Shambellie House: Options Appraisal 53 March 2014

9.2 Options 2a (Cook School) & 2b (Art/Outdoor Centre) 9.2.1 Residential accommodation for leisure courses There are many precedents for large or small country houses used as residential centres for adult education where courses of all types, from writers’ workshops and artists’ studios, craft skills to cookery, and yoga, meditation and psychotherapy. The demand in ‘leisure courses’ has resulted in many country houses being given over to this use. Residential centres are promoted as being in attractive surroundings, often in private grounds and in ‘get away from it all’ locations, designed to enable creative thinking, learning and freedom of expression. The following are a few relevant examples to consider and compare with potential opportunities at Shambellie and New Abbey. While not all examples provide residential accommodation, all have elements worth considering for Shambellie.

9.2.2 Higham Hall, Cumbria Higham Hall is an educational charitable trust advertising ‘Study Breaks in the Lakes’. There is a plethora of short courses including art history, fitness, crafts, textiles, performing arts and bridge. The Hall can also be booked out to large groups of up to 90 people when courses are not running and there is also a self-catering bungalow in the grounds. Walking in the Lake District is promoted as one of the key attractions for coming to Higham Hall, and the building itself is historic and imposing, with a characterful, if a little Spartan, interior. There are 32 bedrooms, dining for 54 people, 7 meeting rooms and 6 acres of grounds.

Higham Hall

A mixture of residential courses and non-residential courses cost £209 and £145 respectively, for 2 days at the weekend. Courses during the week for 5 days at the top end are £460 and £295. Events called ‘Talk & Tea’ are run where a special interest talk is held with refreshments, for £16 per person.

Higham Hall is much larger than Shambellie but illustrates the wide range of leisure courses available, it is non-specialist, and the attraction of a good, rural location with things to do in the surrounding area.

Shambellie House: Options Appraisal 54 March 2014

9.2.3 The Coach House, Durhamhill, Castle Douglas, D&G The Coach House is marketed by Large Holiday Homes as mixed-use holiday let and residential accommodation focussing on courses on arts, crafts, creative writing and song writing. The House can also be hired for events and people wishing to run their own courses at this venue. It is located about 14 miles south west of Dumfries and around 15 miles from the Solway Coast.

The Coach House is a converted farm building, decorated inside in contemporary style with an emphasis on sustainability and an eco-friendly, ethical way of life. The property is set in rolling countryside yet close to the small village of Kirkpatrick Durham.

The village is ‘a vibrant community that punches above its weight in creativity. It is this environment that has fostered the development of this venue for residential courses in all the arts, The Coach House is a cauldron of creativity and anyone that stays here will have that spirit rub off on them and surrounded by this beautiful countryside they will be inspired to be more creative themselves’8 As well as creativity, the website focusses on the outdoor activities available on the doorstep, particularly walking, cycling, fishing and water sports.

As a large self-catering holiday let, the Coach House sleeps 14, but can be split into two sleeping 6 and 8. The adjacent workshop/studio can be booked by holiday-makers and is also where the courses take place at other times. Weekend courses vary but on average for 3 nights full board the cost is £250. In August, a week self-catering for 14 people is £1,650; in November, £1,250 for 6 nights.

This example is interesting as it combines the two uses – self-catering holiday and residential courses – in the one venue. It has a clear creative and ethical emphasis and, similar to Higham, promotes the rural location and range of outdoor activity as part of the offer. Higham Hall and The Coach House have been used as the two principle comparators to explore the Option 2b (Art/Outdoor Centre) in the financial analysis.

9.2.4 Penninghame House, Newton Stewart, D&G The strapline for Penninghame House is ‘for a life of health and wellbeing’ and the venue offers courses in health, nutrition and well-being education. The cooking school within Penninghame was launched in 2011 and offered courses examining nutrition, weight-loss, well-being and health issues. The cook school closed in January 2013 however, and now the teaching focusses on two main programmes: The Seven Doors to Awakened Consciousness - a three-and-a-half year programme; and The Penninghame Process – a 6 day residential course focussed on deep personal healing work which perhaps has proved more profitable than the cooking school.

8 http://www.largeholidayhomes-durhamhill.co.uk/

Shambellie House: Options Appraisal 55 March 2014

Without knowing the business model, it is difficult to say, but this and the venue hire appear to be the mainstay. The couple who run Penninghame moved there in 2000 ‘to leave their busy London life and live in the country’ and since then the place has developed a reputation for being a leading centre of its kind.

The Penninghame Process can be booked for one week at a cost of £1,595. An article on the course written by Anna Pasternak in the Daily Mail in 2011 states that there was a waiting list at this time, when it was run just twice a year, and there were 17 participants on the course. It was described as ‘the world’s most extreme therapy’ but worth the trip, Pasternak said. The course is now running four times a year.

Penninghame House itself is a striking Victorian mansion set in 120 acres of parkland, woodland and a walled garden. The House, which is sumptuously decorated, can be hired for corporate events and meetings. There is also a sauna and steam room, gymnasium and a beautiful dining room to seat 45. In addition, it has a self-contained venue in the grounds, the Cree Hall, that can hold 100 people and cater for 30 people seated, with its own commercial kitchen, bar and toilets. Shorter courses are also held, as well as focussed weeks for health and relaxation.

Penninghame House Inside Penninghame House

Penninghame is clearly at the high-end of a very specialist market, the opposite of Higham Hall. The Coach House is in between, and a more realistic or viable model to consider.

9.2.5 The Cook School, Broughton, Scottish Borders The Cook School operates from a farm in the Scottish Borders, about 20 miles south of Edinburgh. It offers a variety of day courses such as ‘Curry Lunch’, ‘Chocolate Lovers’ and ‘Aga Sunday Roast’. There are also theme days, including ‘Italian’, ‘bread-making’ and ‘pastry- making’, all at £120 for the day. There are half-day Aga workshops at £50. In addition, corporate team-building events can be booked and the cost depends on the number in the group. Group sizes vary from 6 to 20.

Shambellie House: Options Appraisal 56 March 2014

The Cook School also offers outside catering, including for small numbers (lunches for 5 or 6 people) which is apparently hard to find. For larger events, the Cook School will plan the event and manage every aspect of it on the day. Consultancy is also available and includes staff training, menu planning and kitchen planning.

The Cook School is not residential, but many of the activities could easily translate to residential courses.

9.2.6 River Cottage, Axminster, Devon River Cottage HQ, made famous through the Channel 4 cookery programme with TV Chef Hugh Fearnley-Whittingstall is picturesque cottage on the Devon and Dorset border, used as a base for our Cookery and Chefs' School, unique dining experiences and memorable events. While this model is not directly comparable to Shambellie House, particularly due to its location, audience and associations, it is a useful model in terms of researching the size of classes, variety and length of courses and how a residential cookery school is run throughout the year. The course structure (but not the prices) has been used as a comparator for Option 2a (Cook School). Broughton has also been used as a comparator for Option 2a.

9.2.7 Comparison of properties offering residential and non-residential courses Name Miles from Accommodat Day course Weekend/s Week Group Venue hire Dumfries ion available availability & hort course course size for and & capacity average cost availability availability courses capacity & average & average cost cost Cook schools The Cook 47 No Yes; £120 No No 6-20 No; offers School, (Half day outside Broughton available at catering £60) River 368 No; gives Yes; £199 Yes; £430 Yes; £870 Up to 64 (+30 Cottage local 25 in the suggestions summer) on website Arts/crafts venues Higham Hall 58 Yes; 32 Yes; £40 Yes; £224 Yes; £359 Up to Yes; 90 bedrooms 60 The Coach 14 Yes; sleeps No Yes; £250 No 10-15 Yes as House 14 self- catering accommo dation; 14 Penninghame 47 Yes; 19 No No Yes; c.17 Yes House bedrooms £1,595

Shambellie House: Options Appraisal 57 March 2014

9.2.8 Nature, horticulture, craft, environmental art, landscape in D&G This year, during August and September, Dumfries & Galloway was the location for the first Environmental Arts Festival Scotland – a series of events, talks, performances and activities relating to the landscape. The website promoting the festival states: ‘In Dumfries & Galloway people live closely with the land, this relationship is always changing and evolving. The creative arts are breathing new life into the region, helping to celebrate its special places and making innovative links with other walks of life to make Southwest Scotland a positive, progressive place to live.’9

The festival was created through partnerships with arts organisations in the region - Wide Open, Spring Fling and The Stove. It was supported by Creative Scotland, D&GC, Scottish Natural Heritage, the Forestry Commission and others.

Environmental Arts Festival Scotland – woodland activities

Wide Open is an arts production company, ‘a creative organisation for the development of public art and place-making projects across rural Scotland. Wide open works within cultural, social and physical contexts to evolve interdisciplinary creative processes that reveal and explore identity, distinctiveness and potential of place and people.’

Spring Fling is described as ‘Scotland’s leading contemporary visual art and crafts open studios event bringing 10,000 visitors to artists’ studios in D&G’. The main event takes place in May but workshops, exhibitions and career development activities take place throughout the year. The May weekend incorporates a 3-day cycle tour of the region and the studios taking part.

9 http://www.environmentalartfestivalscotland.com/

Shambellie House: Options Appraisal 58 March 2014

‘Hush’ sculpture by Matt Baker in the Fleet Valley

The Stove is an artists’ collective based in Dumfries promoting public art in its widest sense. This can be dance, drama, sculpture, poetry, cycle races, film-making and photography. The aim of the Stove network is to expand and support a contemporary art scene in South West Scotland for the benefit of the wider community.

This strong ‘grass-roots’ contemporary arts scene has a basis in much of the activity that emerged during the 1970s and 80s in the region. Landscape and environmental artists such as Andy Goldsworthy and Charles Jencks set the scene through creating some of the most remarkable work of the period.

Since 1989, Jencks and his late wife Maggie Keswick’s Garden of Cosmic Speculation five miles north of Dumfries has been developing as a series of landforms, terraces, sculptures, water features and bridges. The garden is open to the public on one day of the year and is a major draw on the day. Andy Goldsworthy, who lives in Dumfriesshire, has used the landscape and natural materials in his work, from his ephemeral sculptures made of ice or leaves, to his recent work Striding Arches built from blocks of red Locharbriggs sandstone.

Jencks’ Garden of Cosmic Speculation Striding Arches by Andy Goldsworthy

Shambellie House: Options Appraisal 59 March 2014

Two works by Andy Goldsworthy

This influence can be seen today in the work of artists such as Matt Baker and Trevor Leat, the latter creating a large wicker sculpture in the grounds of Shambellie known as the Whirling Dervish. Trevor runs a number of courses (usually 3-4 in both spring and autumn) throughout Dumfries and the wider region, instructing in both small pieces such as wicker baskets to larger pieces of sculpture such as the Whirling Dervish.

Willow weaving at The Coach House, Durhamhill Whirling Dervish, Shambellie

Forming the inspiration for this is the landscape of Dumfries & Galloway, one of the region’s major assets. There are three National Scenic Areas and ten Regional Scenic Areas in Dumfries & Galloway. These encompass tidal flats, sea cliffs, beaches, rugged uplands, lochs, glens, forests and mountains. There is also a rich archaeological heritage with many

Shambellie House: Options Appraisal 60 March 2014

prehistoric sites, as well as later fortifications and castles, many in the guardianship of Historic Scotland. The wetlands and tidal flats of the Solway Coast support thousands of migratory birds during the winter on their way north. The region is also known for its world class mountain biking trails. The ‘7 Stanes’ are seven mountain biking trail centres spanning the south of Scotland. At each ‘stane’ (stone) there is a contextual sculpture.

One of the 7 Stanes – a pink quartz sculpture The Ghost Stane – white marble

Mountain-biking in Dumfries & Galloway

9.2.9 Threave Garden and Estate, Castle Douglas, Dumfries & Galloway The National Trust for Scotland runs the School of Heritage Gardening, where participants can ‘cultivate the art, craft and science of practical horticulture’ at Threave Garden and Estate,

Shambellie House: Options Appraisal 61 March 2014

Castle Douglas, D&G. Courses having been running here since 1961, and while these are not residential, they show that there is a demand for horticultural tourism. Threave successfully manages to combine art, wildlife and gardening in one destination and it is one of the top ten NTS visitor attractions in Scotland.

Threave House and garden Donald Rae, sculptor, with ‘St Francis’ at Threave

At the centre of Threave Estate is Threave House, a restored, red sandstone Scottish Baronial mansion, open for guided tours. The House was built in 1872 by Edinburgh architects Peddie and Kinnear. The grounds are large, extending to 1,600 acres of way marked trails, bird hides and a wildfowl sanctuary, together with 64 acres of ornamental garden. Threave also has a visitor centre, gift shop, plant centre and glasshouses. There are three self-catering holiday properties on the Estate, including the gate lodge. Interestingly, Threave also has a Sculpture Garden, showing works by Scottish artists in the setting of what was once the Formal Garden.

The House and garden are available to book for weddings and corporate entertaining, seating 120 guests. School groups are encouraged and a series of events, walks, talks and activities is programmed throughout the year.

9.2.10 Shambellie Walled Garden The historic Walled Garden of Shambellie House is owned by Shambellie Estate but leased on a 25 year basis to Ms Sheila Cameron. Sheila and her brother have, over the last 9 years, restored the garden from a derelict state and created an impressive visitor attraction in New Abbey without any grants or help, other than from local volunteers.

The garden has been beautifully planted out and the glasshouses restored for use as a nursery. Shambellie Walled Garden and Nursery now operates on a semi-commercial basis and has been open to the public for the last four years, with Sheila Cameron managing the garden and selling plants from the nursery. It does not by any means bring in sufficient revenue to cover running costs. Annually, the Walled Garden receives around 2,000 visitors

Shambellie House: Options Appraisal 62 March 2014

and the number is increasing. Sheila charges £2 per adult and the garden is open April to September, Saturdays, Sundays and Mondays from 10.00 till 16.00. Sheila also runs very popular gardening classes and gives talks and tours.

Shambellie Walled Garden Shambellie Walled Garden with restored greenhouses

Sheila attended the PRT run workshop in October and was keen to hear how plans may develop involving the Walled Garden. She feels there is certainly scope to work together with a new end-user at Shambellie House, particularly if the uses can be symbiotic.

9.2.11 WASPS Artists’ Studios The WASPS model for hiring out artists’ studio space is used as a comparator in Section 12, for basement community/studio space in Option 1a (Holiday Let & Community).

Wasps Studios have been operating as a charity for 34 years, providing affordable studio space to artists and reusing redundant buildings at the same time. The model has become very successful and the group is now one of the largest studio providers in the UK, currently housing 750 visual artists and 22 arts charities in 19 buildings across Scotland. The organisation is keen to work towards the regeneration of deprived areas wherever possible.

In response to the high demand for studio space in Dumfries & Galloway, Wasps recently opened studios in Kirkcudbright providing 14 studio spaces, kitchen and toilets in two converted, linked townhouses. Though not a deprived area, Kirkcudbright is a natural choice as the picturesque coastal town has a significant reputation as an ‘Artists’ Town’, with a long history of painters living there, and today a high number of galleries and artists working there. The location suits Wasps because artists are drawn to places that are vibrant, well-connected and part of an established scene.

Whilst New Abbey and Shambellie House itself do not exactly fit the Wasps mould, in speaking to Chris Biddlecombe, Property Projects Officer, and John Crallan, architect and a director, it was useful to learn the following:

Shambellie House: Options Appraisal 63 March 2014

• Wasps look to own properties and partner with other arts-based organisations • Normally the buildings chosen are industrial in nature, suitable to be knocked-about, simple and robust, such as their newly completed space in Glasgow, the South Block • Locations should not be too isolated as artists often want to be part of a community • Shambellie House may not be suitable due to its plan and interior character and its rather secluded location on the edge of small, quiet village • Demand remains high in Dumfries & Galloway for artists’ studios.

Canonwalls and Claverhouse, Kirkcudbright South Block, Glasgow

9.2.12 Relevance for Shambellie House Options 2a (Cook School) and 2b (Art/Outdoor Centre) Shambellie could be recreated as a version of Threave in miniature. It has all of the ingredients, only on a smaller scale. The House and Lodge could provide catered or self- catering accommodation, with workshop, teaching, storage and changing facilities at basement level. With the natural backdrop described in Section 9.2.8 and by working in conjunction with Shambellie Walled Garden and Shambellie Estate, a number of related activities and courses could be created such as: horticulture; gardening; garden and landscape history; weaving; nature walks; woodland management; environmental art and sculpture, to combine artistic activity with landscape, environmental and natural heritage interests.

Shambellie Walled Garden and Nursery could become an integral component, again, where home-grown fruit and vegetables could feature in cooking and food provided for overnight guests of the residential centre, and of course it could be a key part of courses related to horticulture.

Shambellie House: Options Appraisal 64 March 2014

9.3 Options 3a (Private House) & 3b (Two Private Houses) 9.3.1 Private House(s) The market for small country houses in Dumfries & Galloway is reasonable, though well below the prices commanded by similar rural or semi-rural properties lying just outside the central belt, in the Highlands and on the West Coast. Rural properties are marketed by a number of estate agencies based in Edinburgh, Glasgow or Dumfries and the following are comparators for assessing the current market value of Shambellie, and for gauging what this property could command once restored and upgraded as a family home.

We have avoided comparison with properties that have a large amount of land, because this inflates the overall value. It may be a slight disadvantage at Shambellie House that the grounds now only extend to 2.3 hectares or 5.7 acres.

In Langholm, around 40 miles from Dumfries, Erkinholme is a large Victorian country home set in beautiful grounds. The nine bedroom property is offered by Smiths Gore at over £795,000. The House has large rooms, an impressive interior with striking original features and a large conservatory. It is in excellent condition and immaculate decorative order. This property is therefore at the higher end of the market for period country houses in the region. Its move-in condition and large, landscaped grounds set it at a higher market value from Shambellie.

Keir is a Victorian property outside Thornhill, around 15 miles from Dumfries, set in 12.1 acres with woodland, paddock, walled garden and various outbuildings. The House itself has four reception rooms, six bedrooms and a conservatory. It is in excellent decorative condition, though lacks the character of Shambellie. It is offered by Edinburgh-based agents, Strutt & Parker, at over £695,000.

Glaisters Lodge outside Corsock, c16 miles from Dumfries, is a former Victorian hunting lodge set in rolling countryside with 2.4 acres of ground. With three reception rooms and nine bedrooms it is a comparable size, though the rooms are much less grand and on a smaller scale than at Erkinholme and Shambellie. It is however in good condition and decorative order. Glaisters Lodge is for sale through Smiths Gore at offers in excess of £450,000.

9.3.2 Comparison Property Agent Bedrooms Market Internal Condition Land Miles Price (£) historic (Acres) from character/ Dumfries period décor Erkinholme Smiths Gore 9 795,000 High Excellent 11 40 Kier Strutt & 6 695,000 Low Excellent 12.1 15 Parker

Shambellie House: Options Appraisal 65 March 2014

Glaisters Smiths Gore 9 450,000 Low Good 2.4 16 Lodge

9.3.3 Relevance for Shambellie House Options 3a (Private House) and 3b (Two Private Houses) Shambellie House itself could be marketed tomorrow as it is, as a property in need of modernisation and upgrading, at around £650,000 according to the valuation done by Savills (see Section 11).

Alternatively it could be offered as a property with consent for upgrading to a large family home of five principal bedrooms, self-contained bedroom suite, cinema, games room, gym, three principal reception rooms, large family kitchen, utility, attic, stores and double garage. The budget cost to convert and upgrade the property to a high specification is estimated at £385,000. However, upgrading could be done to a lower specification, possibly for around £100,000 (as per Savills assumption). This does not include the repairs, which are considered non-urgent.

Shambellie House: Options Appraisal 66 March 2014

10. Capital costs The budget costs (excluding VAT & professional fees) for the capital costs for each option are noted below.

The costs have been prepared by the quantity surveyor and a report detailing all the assumed works for each option (excluding those for additional housing and lodge) is at Appendix E.

Option 1a High-end self-catering holiday let with community use £430,000 Option 1b High-end self-catering holiday let of two units £385,000

Option 2a Residential cook school £670,000 Option 2b Residential art/craft or field/outdoor centre £635,000

Option 3a Private House £385,000 Option 3b Two Houses £495,000

The cost of constructing the additional housing on site of former public car park

Option 1 Five houses £900,000 Option 2 Three houses and studio/workshop units £825,000

Refurbishment of Lodge £85,000 External repairs to Shambellie House £60,000

Shambellie House: Options Appraisal 67 March 2014

11. Valuations Valuations were carried out of the property for Scottish Government by Savills, who conclude that the current market value of the property is £650,000 and the projected market value of the upgraded and restored property would be £800.000. This section is a summary of the report dated December 2013 and attached in full at Appendix I.

The property comprising Shambellie House, Lodge, garden and grounds of 5.7 acres was assessed following inspection by Savills valuers. The location, setting, size, condition, provision of services, access, planning controls, and environmental considerations were the key factors taken into account.

Savills were provided with existing plans of the House and proposed plans of the House following upgrading and restoration as a single dwelling and two subdivided dwellings. In addition, the budget cost plan from the Armour Construction quantity surveyors was provided to assist.

The report gives an overview of the residential property market in Scotland and in the Dumfries & Galloway region. While the market is growing in confidence, the prime market for high-end properties in Dumfries & Galloway is restricted due to its relatively remote location and the annual average sale price has decreased in the region by 2.1%. Shambellie House would fall within the prime price bracket that is struggling most in the current climate, plus there is over supply in the region.

Savills considers that subdivision of the House to two dwellings would not be viable because the properties are far less desirable due to the lack of privacy demanded by those seeking a country house.

In terms of other uses, the report dismissed conversion to a care home due to regional oversupply. Boutique hotel development would not be considered suitable either because of the small size and inconvenient location far from the main routes. The report did not consider any other uses.

The market value of £650,000 for the property in its current condition is arrived at based on a number of considerations and by looking at comparators of properties in the region. The location of Shambellie House is attractive within close proximity of New Abbey and Dumfries, but is considered a secondary location due to its remoteness from the central belt. The condition of the House and lodge are considered ‘fair’ and ‘very poor’ respectively. The gardens are viewed as an attractive asset with good amenity value and privacy.

The projected market value of £800,000 is based on what the property could be expected to achieve once upgraded for residential use. Savills advise that a much lower budget cost

Shambellie House: Options Appraisal 68 March 2014

than £385,000 (the QS budget cost for a high-spec upgrade) could be spent on the House so that the venture did not result in a negative value.

The report concludes with the recommendation that, if Scottish Government needs to secure capital receipt with minimal cost exposure, the client would be advised to sell the entire property in its existing state as a single principal residential dwelling with gate lodge.

Once the cost of borrowing is taken into account, the surplus that the sale of the property following conversion (even based on the lower spec) is likely to be low, and may result in a loss, depending on how long it may take to find the right purchaser. This is therefore unlikely to be an attractive proposition for a commercial developer. Instead it is likely that a successful sale on the open market would depend on finding a specialist purchaser interested in acquiring the property for reasons other than purely short-term financial gain, more likely as a permanent family home.

As mentioned above, Shambellie House falls within the prime price bracket that is struggling most in the current climate and is located in the region of Scotland where there is already over-supply of similar properties for sale. In purely financial terms, the sale option therefore remains an uncertain one, regardless of its other, non-financial disadvantages – see options comparison in Section 14.

Shambellie House: Options Appraisal 69 March 2014

12. Revenue income and expenditure analysis A financial appraisal for revenue income and expenditure has been produced for Options 1a (Holiday Let & Community), 1b (Holiday Let - 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre). A financial appraisal has not been produced for Options 3a (Private House) and 3b (Two Private Houses), since they would be delivered through sale on the open market and transfer to a suitable buyer through the market; therefore issues of ongoing viability in terms of income and expenditure are not relevant.

The differences in income and expenditure owe to the different architectural configurations and different sets of uses for the options.

All options are residential: based on a combination of people staying in the House for weekend breaks, holidays or day trips. The number of bedrooms and capacity is shown below. While Option 2a (Cook School) has three more bedrooms than Option 2b (Art/Outdoor Centre), it only has capacity for 1 extra person because it is based on a higher number of single-occupancy double rooms (eight) and three double-occupancy double rooms.

All options: Number of bedrooms and capacity Option Bedrooms Maximum capacity Option 1a (Holiday Let & Community) 5 10 Option 1b (Holiday Let - 2 Apartments) 9 17 Option 2a (Cook School) 11 14 Option 2b (Art/Outdoor Centre) 8 13

The other way to compare the options is to look at the different uses per floor.

All options: Floor use Option Basement Floor Principle First Second Floor Floor Floor Option 1a Community / Living rooms Bedrooms Stores and shared (Holiday Let & studio space and kitchen space (games / Community) exhibition / interpretation) Option 1b Separate flat with Living rooms Bedrooms Stores and shared (Holiday Let - independent access and kitchen space (games / 2 Apartments) exhibition / interpretation)

Shambellie House: Options Appraisal 70 March 2014

Option 2a Bedrooms, lower Communal Bedrooms Bedrooms (Cook School) kitchen / rooms and preparation area teaching and stores kitchen Option 2b Interpretation / Communal Bedrooms Bedrooms (Art/Outdoor workshop space, rooms and Centre) changing and workshop showers, kitchen / room dining area and stores

This financial appraisal contains an analysis of expenditure and income streams for each of the options. It concludes with a comparison of the options in terms of their financial viability.

12.1 Expenditure 12.1.1 Categories Expenditure is divided into common categories (found in all the options) and option-specific categories. There are three common categories: 1. Marketing. These are the costs associated with marketing and promoting the property, including any commission payments. 2. Housekeeping Staff. These are the salaries of the housekeeper(s) and gardeners. 3. Property Expenses. This covers all expenses related to the upkeep and running of the House. The most important types of expenditure in this category are the utility bills (fuel, water etc.) and consumables: basic provisions.

In addition, Option 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) have a category for Central Office Management and Expenses to cover expenditure items paid centrally to cover the management of the property. For Option 1a , this amounts to 7% of the cost in Year 4; for Option 1b, the figure is 9%.

In both Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments), Property Expenses is the largest category of expenditure (41% and 66% respectively in Year 4). Finally, Option 1a has an additional category to cover the expenses associated with the staffing and running of a community/studio space in the basement. The cost for this category is 37% of the total expenditure cost in Year 4 for Option 1a. However, it only brings in 6% of income.

Options 2a (Cook School) and 2b (Art/Community Centre) have specialist staff and equipment necessary for the activities that will be hosted in the House (cookery, arts & crafts, outdoor pursuits). This category also includes the cost of catering for the course

Shambellie House: Options Appraisal 71 March 2014

attendees. For these options, this category makes up a very important proportion of costs: for Option 2a it amounts to 65% of costs in Year 4; and 67% for Option 2b. By comparison, property expenses are only 22% and 19% respectively.

12.1.2 VAT and inflation VAT is automatically included in most expenses items, which are based on the purchase cost of goods and services. However, as a contingency for those services where VAT has not been included, an allowance has been made for each option: £1,000 for Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments); £2,000 for Options 2a (Cook School) and 2b (Art/Community Centre).

For all expenses a standard annual inflation rate of 2.5% is assumed.

12.1.3 Marketing Marketing is an important budget item - if people do not know about the property, cannot find out about it or book it easily, it will remain empty. An annual budget starting at £500 has been used for Years 1 and 2, dropping to £300 from Year 3 for Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments). This is based on the assumption than an existing, established trust would take on the operation of the holiday let under these options, therefore allowing for much of the marketing to be conducted through existing web presence, brochures and other shared media. For the residential courses (Options 2a (Cook School) and 2b (Art/Outdoor Centre)), a higher budget of £2,000 has been allocated in Years 0 and 1, dropping to £1,500 in Year 2 and £1,000 from Year 3, to cover the cost of investing in new advertising platforms, both electronic and traditional.

In addition, for all options, an allowance starting at £200 a year has been included for commission. This covers an eventuality if a system is set up whereby former holiday makers are given a small commission if they recommend the House to friends. Commission may also work in other ways.

12.1.4 Staff All options require housekeeping and gardening staff. For Option 1a (Holiday Let & Community), which sleeps 10, the housekeeping budget is based on two housekeepers working for six hours between each changeover. This would cost £4,992 in Year 1. Housekeeping staff will be paid £8/hour. For Options 1b (Holiday Let - 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre), in which the whole House needs to be cleaned (including the basement), an additional allowance of half a staff member has been added. For these options, the cost is £6,240 in Year 1.

The gardener’s budget is the same for all options: one gardener paid £8/hour and working four hours/week, totalling £1,664 over the year. The gardener’s budget for equipment is

Shambellie House: Options Appraisal 72 March 2014

found at the “Ground Maintenance” item under Property Expenses. This is the same for all options at £1,000/year.

Options 2a (Cook School) and 2b (Art/Outdoor Centre) also include the cost of a Centre or House Manager, whose job it will be oversee activity on site and coordinate attendees, trainees, cleaners, maintenance and to deal with any issues arising on the ground. It will be a permanent position based on half time of a salaried post at £30,000. Taking in to account NI contribution the cost of this post would start at £16,950 in Year One.

12.1.5 Property expenses Property expenses is the biggest expenses category for Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) and second biggest expenses item for Options 2a (Cook School) and 2b (Art/Outdoor Centre). Some property expenses items are standard for all options. Others vary according to the options.

12.1.6 Standard items Pest control An annual budget of £50 has been estimated for pest control, which will cover minimal intervention.

Inspection costs Inspection costs are budgeted for the visit of tourist boards to the building for the purpose of inspection for accreditation. This has been estimated at an annual cost of £100 in Year 1, recurring every two years.

Decorating Internal decorations are a one-off budget item in Year 5 for each option. Options 1b (Holiday Let - 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre) have an allowance of £2,250 which covers the cost of internal re-decoration to the whole property. Option 1a (Holiday Let & Community) has a smaller allowance of £1,500 as the cost for decorations to the basement has been included in the budget for the Community/Studio space under ‘Internal Cleaning and Decorating’.

Ground maintenance The budget for ground maintenance covers equipment and plants required by the gardener for the upkeep of the grounds. A budget of £250 is allocated in Year 0 for preparation prior to opening, followed by a £1,000 budget in Year 1 rising yearly following inflation. A rise is shown in Year 5 for the purchase of new equipment if required.

Shambellie House: Options Appraisal 73 March 2014

Insurance It has been assumed that insurance will be the same across the four options, at an annual cost of £800 in Year 1, rising with inflation.

Repairs and maintenance Repairs and maintenance include: servicing alarms and securing systems, basic maintenance to mechanical and electrical services, basic building maintenance (windows, doors, cleaning gutters) and exterior decorating works. A budget of £800 has been estimated in Year 1, with an annual increase of 10% year on year. An extra £5,000 has been budgeted in Year 5 for more significant repairs work.

Telephone / broadband Telephone and broadband will be provided throughout the building for all options, budgeted at £300 in Year One, based on an assumption of a combined contract valued at £25/month, and rising with inflation.

Windows / chimney / cleaning equipment Shambellie has three chimneys, and a budget of £80 has been calculated to sweep them on an annual basis. Window cleaning has been budgeted at £17.50 per quarter, which comes to an annual total of £70. In addition there is an annual allowance for cleaning equipment starting at £50, which totals a combined annual budget starting at £200 for Option 1a (Holiday Let & Community) (this has been increased by 20% to £240 for Options 1b (Holiday Let - 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre) since they also include the basement). In addition, a one-off equipment (i.e. hoover) budget of £200 has been assumed in Years 0 and 5 for all options.

12.1.7 Varied Items Consumables This covers all the basic grocery and toiletries expenditure required to restock the House after each stay or course. For Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments), there is an £80 budget which includes a hamper that is waiting for guests when they arrive in the House with chocolates, sparkling wine, etc. per changeover.

The total budget is calculated by the number of stays throughout the year multiplied by the budget per changeover. For Option 1a (Holiday Let & Community), consumables total £1,840 in Year 1, rising to £2,924 in Year 4. For Option 1b (Holiday Let - 2 Apartments), which has two separate properties, two sets of consumables (i.e. two hampers etc.) will need to be purchased, which totals £3,120 for Year 1 and £4,576 in Year 4.

For Options 2a (Cook School) and 2b (Art/Outdoor Centre), the consumables allowance is calculated from the number of course-days throughout the year multiplied by the daily

Shambellie House: Options Appraisal 74 March 2014

consumables budget, which is £80 for Option 2a and £50 for Option 2b. For the Option 2a, it would be unaffordable to give a hamper to each guest, however, sufficient budget is required to cover a small welcome gift to each attendee, for basic groceries to support the cook school and for wine and other consumables to accompany dinners. For Option 2b, the budget will be lower and will include a modest welcome gift, toiletries and some wine.

Fuel / electricity and water There is a £5,000 lump sum allowance for fuel in Option 1a (Holiday Let & Community). This is based on the combined cost of oil for heating, logs for chimneys, gas for cooking and electricity for power and lighting. Option 1b (Holiday Let - 2 Apartments) and 2b (Art/Outdoor Centre) is a 20% higher than Option 1a (£6,000) to cover the additional costs in the basement. In turn, Option 2a (Cook School) is 10% higher than Option 2b to account for the additional gas and electricity requirements associated with running a cook school.

Water is a separate item. Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) start at an annual allowance of £800. Options 2a (Cook School) and 2b (Art/Outdoor Centre) are 10% higher due to the likely additional water use of showering / washing associated with use as an outdoor centre or for a cook school.

Business rates D&GC were consulted for Business Rates. The Council Tax Band for the property is £2,600 - £3,000. The rateable value is 46%. For Option 1a (Holiday Let & Community), this financial appraisal uses the lower figure of £1200/year, since the basement will be used for community use. For Options 1b (Holiday Let - 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre), the top end of the range (£1,400) is used.

TV licensing & purchase This item includes the license fee and TV purchase cost (in Years 0 and 5) for one TV for Options 1a (Holiday Let & Community), 2a (Cook School) and 2b (Art/Outdoor Centre), and for two TVs for Option 1b (Holiday Let - 2 Apartments).

Waste and recycling The Council’s rate of £4.04 per weekly collection of a bin for businesses is used as a basis for this item. Since each option has a different number of rooms and capacity, and different uses, a different number of bins are required. For Option 1a (Holiday Let & Community), two bins; option 1b (Holiday Let - 2 Apartments) and 2b (Art/Outdoor Centre), three bins and for option 2a (Cook School), four bins, the latter not only due to the larger capacity of the House but also because of the waste produced by the cooking school.

Shambellie House: Options Appraisal 75 March 2014

Other property expenses / sundry This is a contingency item based on 10% of Property Expenses plus specialist expenses for equipment and materials for the teaching schools. The calculation excludes ingredients (which are based on a fixed budget), as well as salaries, business rates and TV licencing fees which are fixed and known. In Year 1, the contingency sum is £1,403 for Option 1a (Holiday Let & Community); £1,656 for Option 1b (Holiday Let - 2 Apartments); £2,596 for Option 2a (Cook School); and £2,274 for Option 2b (Art/Outdoor Centre). It also includes any higher than expected expense for items such as pest control and cleaning.

12.1.8 Central office management and expenses This expenditure category is for Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) only. If, for example, Shambellie is taken on by an established national self-catering holiday home provider such as the Vivat Trust or the Landmark Trust, there may be management and expenditure incurred by the central office.

Items include: • Travel – for example by senior management or project staff to visit the property and deal with any issues that need resolving. • Postage & Delivery – costs if items need to be sent between head office and the property. • Management Fee – a fee to cover the cost of managing the good running of the property including dealing with staff issues, organising maintenance, repair, bills etc. • Other – a contingency annual allowance starting at £100.

Central Office Management and Expenses is the same for both options, starting at a total of £2,616 in Year One, rising to £3,221 in Year Four.

12.1.9 Community and studio space Option 1a (Holiday Let & Community) includes a category for community / studio space. The financial analysis assumes that the basement space in Option 1a will be divided into three studios or community rooms, with flexibility of use. The area will also have toilets, a kitchen and a common room for all users to share.

Many of the costs for this space are based on cost items for the holiday accomodation. However, they are listed separately, since it is envisaged that this space will be managed and let separately, based on WASPS artist studio model http://www.waspsstudios.org.uk/. • Marketing - Budget allowance of £200 in Years 0 and 1, then dropping to £150 in Year 2, to cover the cost of advertising and marketing the studio spaces. • Manager - This is the principal expenditure item. A part time manager is required to run the space. Duties will include managing bookings for the studios, managing use of common room and areas, and caretaker and security role. Based on an annual salary of

Shambellie House: Options Appraisal 76 March 2014

£22,000, together with national insurance contribution, this works out for a 2.5 day week at £12,430. A salary increase of 2.5% a year has been assumed. • Consumables - An annual budget of £200 has been assumed for basic consumables. • Internal Cleaning and Decorating - Assumes housekeeping staff for 5 hours per week at £8/hour. There is an annual cleaning equipment and materials budget of £50. In Year 4, this calculates to a total of £2,290. A redecorating budget of £500 has been included for the fifth year. • Utilities - It is assumed that the studios/community space will have their own contracts with the utility companies to cover the costs of electricity, water and gas usage. A calculation of 20% of the main House utilities costs has been assumed this equals £1160 in Year 1. • Telephone - The basement will have its own telephone contract, assumed to be a starting annual cost of £150. • Sundry / contingency - There is a contingency item calculated at 10% of all the above costs except staff costs.

It is estimated that the total cost of running the basement studio / community space will start at £16,654, rising to £18,805 by Year 5.

12.1.10 Specialist staff and equipment and catering Options 2a (Cook School) and 2b (Art/Outdoor Centre) have a category for specialist staff and equipment necessary to run the residential courses.

Option 2a - Cook School The Cook School will be run by two training staff who will reside on site for the duration of the course. These staff will be in charge of laying out breakfast, preparing a dinner on the evening before each course and for coordinating the work of the trainee cooks who will prepare their own lunch or lunch and dinner on the course days.

The two training staff assumed are one senior, experienced training cook at £250/day and one assistant training cook at £150/day. These assumptions are based on the equivalent day rate for a demonstration chef. The total staff cost is calculated by multiplying the combined day rate plus any expenses allowance by the total number of course days in a year – in other words, for each day of the course the centre would be properly staffed. The cost starts at £40,020 in Year 1 to cover the cost of 87 course days, £63,653 in Year 2 to cover the cost of 135 course days and £84,399 in Year 3 when the cook school will be operating with the maximum number of courses (179 course days).

Breakfast will be provided at the cook school and a budget of £2.50 per person has been allowed for breakfast. This calculates to £2,065 in Year 1; £3,763 in Year 2 and £5,448 in Year 3 once the cook school is fully operational.

Shambellie House: Options Appraisal 77 March 2014

There is a single daily budget allowance for ingredients at the cook school for participants to work with. This is assumed at £18/day: enough to use quality ingredients to cook a lunch and dinner. Note this daily budget also covers the cost of a dinner the night before the course starts and lunch the last day of each course. The £18 budget is multiplied by the number of “people-course-days”; that is the total number of course days through the year multiplied by the estimated number of people who attending each course. In turn, this calculated by multiplying the maximum capacity of each course by the percentage course take-up rate (see assumptions spreadsheet). The ingredients budget calculates at £14,868 in Year 2; £29,547 in Year 3 and £37,359 in Year 3 once the cook school is fully operational. Finally, an allowance has been made for specialist equipment and machinery based on an initial outlay of £5,000 in Year 0 with a budget of £1,250 (25%) for replacements and the purchase of new machinery or equipment thereafter. There is a budget for utensils and crockery etc. of £2,000 in Year 0 and an annual allowance starting at £1,000 from Year 1.

Option 2b - Art, craft and field/outdoor centre For Option 2b (Art/Outdoor Centre), the residential school will be a slightly different product from the cook school. No meals will be provided, instead it will be self-catering, and people will be encouraged to cook for each other and share food.

The principal costs for this option are therefore equipment and materials to support the activities. There is also a staff allowance – one trainee days’ time has been allocated for each course. A day’s fee of £225 has been given (based on fee plus expenses). This was estimated based on comparators of daily fees of artists and trainers who run arts and crafts courses in the region, for example felt workshops and wicker sculpting. In this option, different trainers will be employed in a range of disciplines including cycling, outdoor pursuits, foraging as well as other art and craft skills. Multiplying the fee by the number of days of courses gives the total staff costs for the year: £23,063 in Year 1; £50,794 by Year 4.

The other equipment costs are: • Equipment for fieldwork: £1,000 in Year 0; then £500 from Year 1 • Arts and Crafts Materials: £600 in Year 1 • Projector, Screen: £350 in Year 0 and £150 from Year 1.

For Option 2b (Art/Outdoor Centre), full board catering will be provided to those guests attending 2, 3, 4 or 5 day courses, including breakfast, lunch and dinner. It is assumed that for those attending the day courses, only lunch will be provided. However, those attending day courses will have the option of staying overnight before the course and will pay a supplement of £60 for this (see below). It is assumed that 50% of those attending day courses will stay overnight and need dinner and breakfast. The per person per meal budgets for breakfast, lunch and dinner are £2.50, £7 and £7 respectively. All meals will be hearty, healthy but relatively basic. The budget for breakfast calculates to £2,445 in Year 1 rising to

Shambellie House: Options Appraisal 78 March 2014

£6,119 in Year 3. Dinner will be £6,846 in Year 1 and £17,133 in Year 3. Lunch, taken by all course attendees, will be £7,772 in Year 1 and £19,217 in Year 3.

A cook will be employed to cook, prepare and set out the meals. It is assumed the cook will be paid on a daily basis as required at £180/day including expenses. This calculates at £18,450 in Year 1; £29,243 in Year 2 and £39,690 in Year 3.

12.1.11 Summary and comparison table of revenue expenditure The table below provides a summary of all revenue expenditure. Year 0 has been included to compare set-up costs. These are fairly low for Options1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments). Fit-out of the apartments has been included in capital costs, so this expenditure is only limited to modest purchases of cleaning equipment, television etc. in Year 0 in order to prepare the apartments to let from Year 1. Options 2a (Cook School) and 2b (Art/Outdoor Centre) have more substantial start-up costs (£11- 12,000) to cover the purchase of specialist cookery or outdoors equipment respectively. There would be no income in Year 1, so a loan would be required to cover this up-front expenditure.

Once up-and-running, Options 1a (Holiday Let & Community) and 1b (Holiday Let - 2 Apartments) will have similar levels of expenditure: around £50,000/year. The level of expenditure for Option 1a (Holiday Let & Community) is roughly £10,000 higher than Option 1b (Holiday Let - 2 Apartments), which is mainly due to the management costs of the community / studio space in the basement. In terms of revenue, Option 1b is the least expensive option.

The level of expenditure for Options 2a (Cook School) and 2b (Art/Outdoor Centre) is significantly higher than that for Option 1 (Holiday Let), due to the additional specialist equipment and staff. Costs are similar for both sub-Options; Option 2a being slightly more expensive at £207,500 in Year3 versus £204,000 for Option 2b.

The way this expenditure adds up is different for each sub-option: Option 2a (Cook School) has higher staff costs than Option 2b (Art/Outdoor Centre) because it has two training staff per course rather than one; it also has slightly higher general property costs since the utilities bill and cost of replacements and consumables is assumed to be slightly higher. Option 2b also has a slightly lower ingredients cost for meals, since the budget per meal is lower, however, most of these savings are needed to pay for the cost of a cook staff member to prepare all the meals.

Shambellie House: Options Appraisal 79 March 2014

Expenditure breakdown Year 0 Year 1 Year 4 Year 5 Option 1a (Holiday Let & Community) Cost (£) 500 713 523 535 Marketing % 24 2 1 1 Cost (£) 0 6,768 7,279 7,452 Housekeeping staff % 0 16 15 13 Cost (£) 1,162 16,271 19,666 28,236 Property expenses % 56 38 41 48 Central office management & Cost (£) 0 2,616 3,221 3,296 expenses % 0 6 7 6 Community/studio space Cost (£) 400 16,654 17,840 18,805 % 19 39 37 32 Cost (£) 2,062 43,022 48,529 58,325 Total % 100 100 100 100 Option 1b (Holiday Let - 2 Apartments) Cost (£) 500 713 523 535 Marketing % 24 2 1 1 Cost (£) 0 8,035 8,641 8,845 Housekeeping staff % 0 26 23 19 Cost (£) 1,550 19,908 24,412 34,017 Property expenses % 76 64 66 73 Central office management & Cost (£) 0 2,616 3,221 3,296 expenses % 0 8 9 7 Cost (£) 2,050 31,272 36,796 46,694 Total % 100 100 100 100 Option 2a (Cook School) Cost (£) 2,000 2,220 1,240 1,271 Marketing % 18 2 1 1 Cost (£) 0 24,985 26,862 27,490 Housekeeping Staff & Manager % 0 21 13 12 Cost (£) 2,078 29,100 47,432 57,107 Property expenses % 19 25 22 25 Cost (£) 7,000 61,203 138,823 142,052 Specialist Staff & Equipment % 63 52 65 62 Cost (£) 11,078 117,488 214,357 227,919 Total % 100 100 100 100 Option 2b (Art/Outdoor Centre) Cost (£) 2,000 2,200 1,240 1,271 Marketing % 17 2 1 1 Cost (£) 0 24,985 26,862 27,490 Housekeeping staff & Manager % 0 22 13 12 Cost (£) 2,035 25,862 40,935 50,455 Property expenses % 17 22 20 23 Cost (£) 7,850 62,475 140,101 142,336 Specialist Staff & Equipment % 66 54 67 64 Cost (£) 11,885 115,522 209,138 221,551 Total % 100 100 100 100

Shambellie House: Options Appraisal 80 March 2014

In sum, in terms of on-going revenue expenditure, Option 1b (Holiday Let & Apartment) is the cheapest option, followed by 1a (Holiday Let & Cook School). For Options 1a and 1b, the expenditure increases from Year 1 to Year 4/5 (when the holiday house is fully operational) by around 13%. For the cook school (Option 2a) and the art/outdoor school (Option 2b) the hike in expenditure between opening and Year 4 is much more significant, at over 80%. This again confirms the greater scale of operation and higher risks associated with Options 2a and 2b.

12.2 Income For each option there is one principal income stream: this is either the lettings fees or the course fees.

12.2.1 Option 1a (Holiday Let & Community) The letting fees for the five-bedroom self-catering unit have been calculated on the basis of an average weekly rental for each quarter.

Option 1a (Holiday Let & Community)

Average weekly rent Q1 (Jan-March) £1,235 Q2 (April-June) £1,653 Q3 (July-Sept) £1,693 Q4 (Oct-Dec) £1,273

The variation in weekly rental reflects the differential pricing of low to high season. The figures have been arrived at by calculating the average of weekly rentals in each quarter for three comparator properties: • Cloister House, sleeps 8; average weekly rental of £1,142 • Old Place of Monreith, sleeps 8; average weekly rental of £1,092 • Auchinleck House, sleeps 13; average weekly rental of £2,155.

Occupancy rates have been assumed based on discussions with the Landmark Trust and the Vivat Trust. They start at 45% in Year 1 and rise to 65% in by Year 3, after which it is assumed that occupancy rate will be flat.

For Option 1a (Holiday Let & Community), the holiday letting income starts at £34,246 in Year 1, rising to £53,176 by Year 4.

Shambellie House: Options Appraisal 81 March 2014

In Option 1a (Holiday Let & Community), income is supplemented by modest rental payments from the community / studio space in the basement. Income has been based on the assumption of monthly rental costs of £140 for Studios 1 & 2, and £190 for Studio 3. Occupancy rates are assumed to be low to start with (30%), since it is expected that it will take time to find artists or groups to let the studios. Occupancy is predicted to rise gradually by 5% a year, reaching 75% in Year 6.

In Year 1 the basement space is expected to generate a small income of £2,417, rising to £4,481 by Year 4 (income includes rental income and service charge contribution). However, running and management costs for this space are substantial (£16,654 in Year 1 and £17,840 in Year 4), resulting in a shortfall of £14,237 in Year 1 and £13,359 by Year 4. If this was a standalone operation, it would not be sustainable without subsidy or grants. However, this option assumes that the whole building is owned and run by the operator of the holiday lets, which would essentially absorb these loses and offset them against the income from the lets; this assumption is made in the summary tables in section 12.3.

12.2.2 Option 1b (Holiday Let - 2 Apartments) Option 1b (Holiday Let – 2 Apartments) is based on dividing Shambellie House into two units: one is exactly the same as for Option 1a (Holiday Let & Community) (five bedrooms; sleeps ten). The second is a basement flat consisting of four bedrooms which sleep seven.

Option 1b (Holiday Let – 2 Apartments) House: average Basement Flat: weekly rent average weekly rent Q1 (Jan-March) £1,235 £500 Q2 (April-June) £1,653 £650 Q3 (July-Sept) £1,693 £800 Q4 (Oct-Dec) £1,273 £650

The assumed rent for the House is exactly the same for Option 1a (Holiday Let & Community). The assumed average weekly rent for the basement flat is based on rental levels for comparator properties: • North Lees Hall, Derbyshire (Vivat); • Shore Cottage, Saddell, Argyll & Bute (Landmark); • Seawood Cottage, Borgue (Cottages 4 you); and • Rowan Cottage, New Galloway (Cottages 4 you).

The financial appraisal calculations are based on the units being separately let. However, large parties will have the option of hiring both units.

Shambellie House: Options Appraisal 82 March 2014

The more modest rental levels given to the basement flat are based on the assumption that it may be more difficult to market it given its basement location, and relatively smaller bedrooms and living space.

The occupancy rates for the main House are assumed to be the same as in Option 1a (Holiday Let & Community). The occupancy rates for the basement flat are assumed to be slightly lower: starting at 40% in Year 1, rising to 60% in Year 3, where the rate is predicted to remain.

Income from the basement flat is projected to be £10,173 in Year 1 and £21,801 in Year 4. Taken together, Option 1b (Holiday Let – 2 Apartments) produces an income stream of £44,481 in Year 1 and £75,075 in Year 4.

12.2.3 Sales income Options 1a (Holiday Let & Community) and 1b (Holiday Let – 2 Apartments) include a very small income allowance for sales of calendar and sundry items, potentially contributing £30- £100. This sum doesn’t make a difference to the financial projections, but it is an indication that there are additional revenue streams that can be used to supplement the principal lettings income.

12.2.4 Options 2a (Cook School) and 2b (Art/Outdoor Centre) The assumptions of cost, number and frequency of courses for Options 2a (Cook School) and 2b (Art/Outdoor Centre) is based on comparator properties including Higham Hall; The Coach House, Durhamhill; the Cook School, Broughton and River Cottage, Axminster. It is recognised that River Cottage is not a perfect comparator to Shambellie House because it is located in the south west of England; it is promoted by its connection to a celebrity chef and an established brand. However, it was a useful comparator model for how a residential cook school would be run and the length, number and popularity of courses.

A key assumption is that the number of courses for both options will be the same for Options 2a (Cook School) and 2b (Art/Outdoor Centre).

Table: Maximum number of course for both Options 2a (Cook School) and 2b (Art/Outdoor Centre) Day Course Weekend / 3day courses Four/five-day holiday course

Q1 (Jan-March) 9 13 1 Q2 (April-June) 9 13 3 Q3 (July-Sept) 8 13 5 Q4 (Oct-Dec) 9 13 1 Total 35 52 10

Shambellie House: Options Appraisal 83 March 2014

By Year 3, once the Cook School and the Art/Outdoor Centre are fully operational, there will be a total of 97 courses a year, over half of which will be weekend or 3-day courses (every weekend throughout the year); 35 will be day courses and 10 will be longer four or five day courses. It is anticipated that it will take some time for the residential schools to ramp up to full capacity. In Year 1, 50% of the courses are expected to run and in Year 2, 75% of the courses are expected to run.

It is assumed that the length of courses for the Art/Outdoor option will be slightly longer than those for the Cook School. This is because of the slightly different offer and audience the two schools are projected to attract. The Cook School will run weekend (2-day) courses and four-day courses. The Arts / Crafts / Outdoor School will run slightly more flexible length breaks, and so it has been assumed an average figure of 2.5 days for the shorter break and 4.5 days for the longer break. On the basis of these figures, it can be calculated that for the Cook School, courses are expected to be running on a total of 179 days a year by Year 3, and the Arts / Crafts / Outdoor School is expected to be running courses on a total of 210 days.

The cost of the courses will be different. Course cost Day course Weekend / Four / five three day day course course Cook School £120 £240 £400 Arts / Crafts / £40 £250 £360 Outdoor School

The final parameters are maximum group sizes and take-up rates.

For Option 2a (Cook School), the property has been designed with eleven bedrooms: eight will be single occupancy and three double with occupancy giving a capacity of 14 people. All courses are residential. For the day courses, the cost includes dinner for the night before the course and bed & breakfast.

Option 2b (Art/Outdoor Centre) has a residential capacity of eight bedrooms and 13 people. In this option the course are non-residential and the price of the course only includes lunch. However, guests are invited to pay a supplement of £60 (see below) to cover the cost of dinner, bed and breakfast if they arriving the night before the course. The maximum capacity of the day course is 18 people.

Shambellie House: Options Appraisal 84 March 2014

The formula used to calculate fee income is:

Number of courses multiplied by maximum number of people per course multiplied by take- up rate multiplied by course cost.

Course fees income from Option 2a (Cook School) is expected to be £96,768 in Year 1 and £257,626 in Year 4. Course fees income from Option 2b (Art/Outdoor Centre) is projected to be £92,341 in Year 1 and £233,168 in Year 4.

For Options 2b (Art/Outdoor Centre), a supplement of £60 will be charged to those guests wishing to stay the night before a day course. It is assumed that 50% of guests will want to stay the previous night. On this basis it is calculated that this supplementary night will bring additional income of £7,980 in Year 1 and £18,318 in Year 4.

12.3 Comparison of the options – income and expenditure The financial projections calculate total income, total expenditure, surplus / deficit and cash flow (balance) for each option.

Option 1a (Holiday Let & Community): Revenue income and expenditure, surplus/deficit and cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (£) (£) (£) (£) (£) (£) (£) (£) Income 0 36,695 46,017 55,749 57,705 61,004 61,393 62,787 Expenditure 2,062 43,022 45,205 47,394 48,529 58,325 51,169 52,549 Surplus/ -2,062 -6,327 817 8,358 9,180 2,684 10,232 10,246 deficit Cash flow -2,062 -8,389 -7,575 783 9,962 12,647 22,879 33,124 (balance)

Option 1a (Holiday Let & Community) begins to make a modest surplus from Year 2. The level of surplus increases up to Year 5, when there is a dip (to £2,864) due to higher expenditure to cover quinquennial maintenance and repair costs. The fact that surplus margin is so low in this year is significant and concerning, in that it does not leave much flexibility if maintenance costs turn out to be higher than expected. Surplus recovers in Year 6 and continues to contribute to a positive cash flow balance, but only reaches just over £33,000 by Year 7.

Option 1b (Holiday Let – 2 Apartments): Revenue income and expenditure, surplus/deficit and cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (£) (£) (£) (£) (£) (£) (£) (£)

Shambellie House: Options Appraisal 85 March 2014

Income 0 44,481 60,735 73,329 75,075 76,821 78,567 80,313 Expenditure 2,050 31,272 33,758 36,055 36,796 46,694 38,647 39,634 Surplus/ -2,050 13,209 26,979 37,274 38,279 30,127 39,920 40,678 deficit Cash flow -2,050 11,159 38,138 75,411 113,690 143,818 183,738 224,416 (balance)

Option 1b (Holiday Let – 2 Apartments) makes a surplus from Year 1, which at over £13,000 is sufficient to immediately cover any loss in Year 0. Surplus is thereafter expected to rise year-on-year, reaching c £40,000 from Year 6. Cash flow is very healthy, reaching well over £200,000 by Year 7.

Option 2a (Cook School): Revenue income and expenditure, surplus/deficit and cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (£) (£) (£) (£) (£) (£) (£) (£) Income 0 96,768 174,324 251,635 257,626 263,617 269,609 275,600 Expenditure 11,078 117,488 167,331 207,673 214,357 227,919 224,043 228,851 Surplus/ -11,078 -20,720 6,993 43,961 43,269 35,698 45,566 46,749 deficit Cash flow -11,078 -31,798 -24,806 19,156 62,425 98,123 143,688 190,438 (balance)

Option 2a (Cook School) makes an operating loss in Year 1. In Year 2, it posts a surplus, but it is not until Year 3 (when it is assumed the centre will be fully operational) that this option makes a comfortable surplus. However, once established, this surplus is reliable and contributes to a growing cash flow balance which is over £190,000 by Year 7.

Option 2b (Art/Outdoor Centre): Revenue income and expenditure, surplus/deficit and cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (£) (£) (£) (£) (£) (£) (£) (£) Income 0 100,321 166,687 245,637 251,486 257,334 263,183 269,031 Expenditure 11,885 115,522 159,660 203,866 209,138 221,551 219,093 222,384 Surplus/ -11,885 -15,201 7,026 41,771 42,347 35,783 44,090 46,647 Deficit Cash flow -11,885 -27,086 -20,060 21,711 64,058 99,842 143,931 190,578 (balance)

Overall, Option 2b (Art/Outdoor Centre) has a very similar financial model to Option 2a (Cook School). It also posts a loss in Year 1 (though not quite as steep as for Option 2a). By

Shambellie House: Options Appraisal 86 March 2014

Year 3, it is making a reliable annual surplus of over £40,000 which contributes to a positive cash flow, reaching over £190,000 in Year 7.

All options: Comparison of surplus/deficit and cash flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (£) (£) (£) (£) (£) (£) (£) (£) Surplus/deficit Option 1a -2,062 -6,327 817 8,358 9,180 2,684 10,232 10,246 (Holiday Let & Community) Option 1b -2,050 13,209 26,979 37,274 38,279 30,127 39,920 40,678 (Holiday Let – 2 Apartments) Option 2a -11,078 -20,720 6,993 43,961 43,269 35,698 45,566 46,749 (Cook School) Option 2b -11,885 -15,201 7,026 41,771 42,347 35,783 44,090 46,647 (Art/Outdoor Centre) Cash flow (balance) Option 1a -2,062 -8,389 -7,575 783 9,962 12,647 22,879 33,124 (Holiday Let & Community) Option 1b -2,050 11,159 38,138 75,411 113,690 143,818 183,738 224,416 (Holiday Let – 2 Apartments) Option 2a -11,078 -31,798 -24,806 19,156 62,425 98,123 143,688 190,438 (Cook School) Option 2b -11,885 -27,086 -20,060 21,711 64,058 99,842 143,931 190,578 (Art/Outdoor Centre)

The table above compares the options. All options are viable in the long-term. However, Option 1a (Holiday Let & Community) is the least financially favourable, only generating a relatively modest surplus of just around £9/10,000 from Year 3. The low surplus is due to the loss-making community / studio use in the basement, which eats into any surplus generated from the holiday home.

Option 1b (Holiday Let – 2 Apartments) is the most viable option overall. It is the only option that makes a surplus from year one and it is the first option to build up a comfortable cash flow of over £100,000 (by Year 4). It is notable that even though the scale of the operation of Option 1b is much smaller than that of Options 2a (Cook School) and

Shambellie House: Options Appraisal 87 March 2014

2b (Art/Outdoor Centre), generating roughly a third of the turnover, its level of surplus is not dissimilar. In other words this is a lower risk option with a higher rate of return for investment.

Options 2a (Cook School) and 2b (Art/Outdoor Centre) have a similar financial model, with Option 2a posting slightly higher initial loses, due to the marginally higher operating cost. By Year 2 both options make a surplus and both are in a positive cash flow by Year 3. Financially, the differences between these two options are in the details (number of specialist staff, structure of course income etc.).

Therefore, to better understand the implications of these models, more detailed business planning work would need to be carried out. However, given that Option 2a (Cook School) is a more specialist model, whereas Option 2b (Art/Outdoor Centre) is more flexible, it could be argued that Option 2a is higher risk

Shambellie House: Options Appraisal 88 March 2014

13. Long-term management and financial implications The following section outlines the key issues, raised through the Options Appraisal process, that need to be considered when investigating these options in more detail.

13.1 Sinking fund Shambellie House is currently in a good condition and will benefit from capital investment during its renovation and adaptation to new uses. However, it is still important to understand that this is a historic building which requires ongoing maintenance and upkeep, and for which an allowance should be made for future expenditure on more substantial repair work. It is therefore essential to factor into any comparison of the financial viability of the options the cost of contributing to a maintenance sinking fund.

While a sinking fund has not formally been included in the financial appraisal, the income and expenditure projections can be compared to draw some basic conclusions about the provision for a sinking fund in each of the options, as set out below.

Option 1a (Holiday Let & Community) does not produce sufficient surplus to contribute to a proper sinking fund. Option 1b (Holiday Let – 2 Apartments) generates enough surplus to contribute to a sinking fund from Year 3, when there is a sufficient balance built up a contribution of around £30,000 annually. Options 2a (Cook School) and 2b (Art/Outdoor Centre) would also be able to contribute to a sinking fund but only from Year 4, at a similar rate as for Option 1b, at £30,000/year. From this perspective, Options 1b, 2a and 2b may be sustainable whereas Option 1a would be unable to meet the cost of future major repair and conservation work to the building.

13.2 Endowment fund This fundamental requirement for a sinking fund raises the question of an endowment. In order to guarantee the long-term maintenance of the historic building, it should ideally be transferred to an existing or new charitable trust with an endowment, which can be used as an investment payment for the sinking fund. This is particularly important for Option 1a (Holiday Let & Community), but it would also be prudent for the other options to allow for the establishment of a sinking fund from Year 1. This would also allow for any unforeseen fluctuations to the financial projections, which means that in some years an operator may not be able to meet its obligation to contribute to a sinking fund.

One possible way to secure this endowment would be through the sale of land within the site for enabling development. This could include, for example, the development of new build residential units on the car park, from which part of the profit could be transferred to the trust as an endowment.

Shambellie House: Options Appraisal 89 March 2014

13.3 Community / studio use Option 1a (Holiday Let & Community) has been shown to be least financially viable of all the options investigated, likely to generate insufficient surplus to contribute to a sinking fund. The financial weakness of this model owes to the discrepancy between the cost of running the community/studio space in the basement and the income that it is likely to generate. Employing a part time manager for this element of the scheme is essential in order to coordinate different community groups, artists or individuals using this space and oversee its operation.

The only way to make this option properly viable is for this annual cost (starting at £12,430) to be covered: 1. Through D&GC subsidy. 2. By cross-subsidy from the holiday let operator. 3. Through the establishment of sufficient endowment to cover the salary of the manager.

Whichever solution is chosen, setting up the community/studio space will require considerable effort and dedication by the project team delivering the main renovation scheme.

13.4 Disposal strategy From our assessment, two routes are open to the Government for the disposal of this asset: • Transfer to a trust, or • Sale on the open market.

The financial appraisals for Options 1a (Holiday Let & Community), 1b (Holiday Let – 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre) have been undertaken on the basis that the property is transferred to an existing or new trust at no cost, however the guidance in the Scottish Public Finance Manual must also be taken into account. All options have initial set up costs in Year 0, and only Option 1b would make a modest surplus in the first year of operation. This means that for these four options to be viable any prospective trust would need to begin operation without any debt or mortgage repayments.

If this first route of disposal is chosen, the transfer to a trust should be undertaken at no cost and it should be on the condition that a trust has sufficient number of years (suggested 5 years) to operate the property according to the agreed use and try to achieve financial viability. These options could be run either by an existing trust, such as the Vivat or Landmark Trust, or by a new trust set up for this purpose. Any trust would be non-profit making with charitable objects, meaning that it would run the property for public benefit.

Shambellie House: Options Appraisal 90 March 2014

The second route should only be taken as a fall-back position. If the first route is not successful (if for whatever reason a trust is unable to achieve viability after the initial period), the property could be transferred back to Scottish Government and subsequently sold on the open market.

13.5 Grant funding Some of the options considered, notably Option 1a (Holiday Let & Community), may be eligible for grant funding. This is an important consideration, since it may alleviate the capital cost of renovating and equipping the property – in particular the community and studio space – and may even make a contribution to the revenue costs.

A project at Shambellie House may be eligible for statutory funding. For example, the Heritage Lottery Heritage Enterprise programme is for projects that seek to achieve economic growth by investing in heritage. It is primarily for enterprising community organisations to help them rescue neglected historic buildings and sites and return them to a viable productive use. Applications are open for grants from £100,000 to £5million. It is important to note that any grant request over £2million is decided on by the Heritage Lottery Fund (HLF) Board of Trustees. These applications will compete against other applications from across the UK. Priority will be given to projects that are located within areas of the UK experiencing economic disadvantage and are in buildings which are formally designated and ‘at risk’.

Heritage Enterprise is designed to bridge the funding gap that prevents a historic asset in need of repair from being returned to a beneficial and commercial use. There must be a conservation deficit which must be proved. By closing the gap (i.e. meeting the conservation deficit) HLF hopes to encourage greater private sector involvement with many Heritage Enterprise projects, working in partnership with community organisations to deliver commercially viable projects. The involvement of the private sector is not mandatory, but it is encouraged. Alternatively, an application could be made to the Heritage Grants programme for over £100,000. This is an open programme for any type of project related to national, regional or local heritage in the UK.

It may also be possible to apply to the Big Lottery Fund for funding, for example Awards for All Scotland which distributes grants up to £10,000. Awards for All Scotland aims to help people become actively involved in projects that bring about change in their local communities, funding could be sought to provide the community with adequate space to come together.

As the executive agency for the historic environment in Scotland, Historic Scotland offers financial help to meet the cost of high-quality repairs to buildings of special architectural and historic interest. In order to meet minimum requirements, the heritage site must be of

Shambellie House: Options Appraisal 91 March 2014

sufficient historic or architectural interest and the need for repair must be demonstrated. The project itself should show a high level of community benefits and the promotion of quality and development of knowledge and skills. The Building Repair Grants offered by the Historic Scotland range from £10,000 to £500,000.

Fundraising from trusts and foundations means that far greater flexibility with match funding can be achieved. Trusts and foundations can support capital works, but also revenue such as activities or even staff posts. The Esmee Fairbairn Foundation supports staff posts and the Robertson Trust also supports revenue and core costs.

Further investigation should establish which options are eligible for grant funding and what impact this might have the financial projections. It should also be noted, however, that grant funding brings with it a number of management and operational obligations, including, for example, public access requirements, specific required outcomes (for example learning goals or skills or employment) as well as the possibility of a principal funder holding a charge over the property.

13.6 Management structure Each of the options has a number of potential management models. The most straight forward is probably Option 1b (Holiday Let – 2 Apartments), which could be run by one of the established holiday home operators such as the Vivat Trust or Landmark Trust. If this was the case, Shambellie House would slot into an existing portfolio neatly, and the House could be managed on the same basis as other properties in the area, hence the relatively low level of central office management costs required. However, if Shambellie were to be set up by a newly created trust as a holiday home on an independent basis or without an existing operational structure, it may incur higher management fees.

The residential school market is less developed than the holiday home market in south-west Scotland. It would therefore be more of a challenge to find a suitable operator for this use. Again, if a national operator could be found, this would lower the risk and allow for cost savings. The financial appraisal has assumed that any school would be independently run and would need a centre manager on site.

Finally, the proposed management structure for the community/studio space in Option 1a (Holiday Let & Community) has not yet been clearly defined. It is assumed that the holiday let operator will own the whole building and be responsible for freehold-type responsibilities including maintenance and insurance. However, it is not clear whether the community space could be run at arm’s length by the holiday let operator itself, by a volunteer group, a charity, or by a business, such as Wasps. Again there are costs and savings attached to different management models. Finding a stable and sustainable management solution for the community space will be key to the success of Option 1a. If a

Shambellie House: Options Appraisal 92 March 2014

financially sustainable and secure management arrangement cannot be found, this could adversely affect the financial viability of the option.

13.7 State Aid It is essential that if Options 1a or 1b are selected, that a robust assessment is made to ensure that the transfer would abide by State Aid regulations and that Scottish Government would legally be able to do so. State Aid regulations aim to protect fair and open competition within the European Union (EU) by preventing public money from creating unfair advantage. Whether in the form of a subsidy, credit or grant, public money should not distort competition between individual businesses or member states.

State Aid is likely to apply where: public subsidy is provided directly by the state or through state resources over the de minimis threshold, currently set at €200,000 over three years; projects supported by public subsidy risk impacting negatively on other businesses by distorting competition; and projects affect trade between member states. There are, however, a number of areas where the EU has created exemptions to the State Aid rules, two of which are likely to be relevant to heritage projects: grants that promote culture and heritage conservation; and grants that promote economic development in areas of deprivation.

There are several options that could be investigated:

Long Lease: The value of a lease on the commercial part of the property could fall under the de minimis threshold over three years. The part that is used for community purposes would not need to be in the calculation as this is classed as non-economic activity, the calculation could also consider occupancy of the property during off-peak season and whether using it for non-economic activity during this period would further lower the calculation.

State Aid Scheme: investigate whether there is a State Aid Scheme which the activities could fall under. The aid given by Scottish Government could fall under new State Aid Schemes being developed. It is through these exemptions to State Aid, known as State Aid Schemes, that heritage projects can receive public subsidy. Schemes will usually be restricted to subsidies specifically relating to the heritage element of the project and can only be awarded where the cost of repairing the heritage asset exceeds the expected increase in end value, making it an otherwise an unfeasible project. This gap is often referred to as the “Conservation Deficit”.

No State Aid Issue: State Aid rules recognise that not all public sector assistance is State Aid, and for State Aid to apply all five test criteria should be made. An assessment needs to be made as to whether the asset transfer could be justified, and whether it would distort competition. Attention should be drawn to criteria four and five of the test criteria, it

Shambellie House: Options Appraisal 93 March 2014

should be noted: “for there to be a (potential) distortion of competition there needs to be a competitive market locally in the goods or services concerned – and this may not always be the case. Furthermore, there needs to be a realistic prospect that the proposed activity would adversely impact on the local competition, rather than simply a remote theoretical possibility”10. It should also be noted that there is a conservation deficit on the project any initial aid given to the community in the cost of sale would be spent on plugging the conservation deficit to repair and convert the property to make it fit for purpose.

10 Development Trusts Association Scotland, EC State Aid Rules & Community Asset Transfers, Briefing Note, Jan 2013.

Shambellie House: Options Appraisal 94 March 2014

14 Options comparison and preferred options In order to compare options we have developed an assessment matrix based on the criteria derived from the project brief and in response to the issues outlined in the previous sections of this report.

14.1 Comparison table ID Criteria Option 1a Option 1b Option 2a Option 2b Option 3a Option 3b (Holiday Let & (Holiday Let – (Cook (Art/ (Private (Two Private Community) 2 Apartments) School) Outdoor House) Houses) Centre) Building Issues 1 Likelihood of consents 4 4 4 4 3 3

2 Preservation of historic 5 5 3 4 5 4 buildings and setting

Subtotals 9 9 7 8 8 7

Financial Considerations 3 Budget costs 3 5 1 1 5 3

4 Financial viability (in 1 4 3 3 N/A N/A operation) 5 Ability to attract grant 4 1 2 3 N/A N/A funding for capital works 6 Capital / tax receipts 2 2 2 2 4 4

10 12 8 9 9 7 Subtotals

Local Community Benefits

7 Level of public access 4 1 2 3 0 0

8 Scope for community 5 1 1 3 0 0 participation 9 Cultural and 3 1 3 5 0 0 educational activities 10 Fit with Dumfries & 3 3 3 5 0 0 Galloway tourism profile 11 Direct employment 4 2 5 5 0 0 opportunities 12 Wider economic 4 3 4 4 2 2 benefits Subtotals 23 11 18 25 2 2 Other Considerations

13 Deliverability 2 3 1 1 4 4 Total Score 44 35 34 43 23 20 Average Score 3.38 2.69 2.62 3.31 2.09 1.82 Key: 0 = fails to meet criteria; 1 = poor; 3 = good; 5 = excellent

Shambellie House: Options Appraisal 95 March 2014

14.2 Description of criteria and scores Below is a description of the criteria used to asses and score the options, together with some further clarifications regarding the specific marks.

1. “Likelihood of consents” reflects the ease with which planning and listed buildings consents are likely to be obtained for the proposed options i.e. how closely they reflect the priorities and views outlined by D&GC’s planning team (at the PRT run workshop in October 2013 and summarised in Sections 7 and 8.2 of this report). With that in mind, we do not anticipate any problems related to obtaining permissions for Options 1a (Holiday Let & Community), 1b (Holiday Let – 2 Apartments), 2a (Cook School) or 2b (Art/Outdoor Centre). While Options 2a and 2b will require more detailed consideration of parking and access issues, Options 1a and 1b may be less attractive to planners because of their lesser contribution to the area’s economy. We therefore gave all four options the same mark. Options 3a (Private House) and 3b (Two Private Houses) are likely to bring the least significant economic benefit to the area and would therefore be expected to receive the least preferential planning treatment.

2. “Preservation of historic buildings and setting” marks reflect the impact the options will have on the significant historic features and integrity of Shambellie’s historic fabric, with Options 1a (Holiday Let & Community), 2b (Holiday Let – 2 Apartments) and 3a (Private House) scoring highest (with relatively little impact) and Options 2a (Cook School) and 2b (Art/Outdoor School) (with more significant interventions related to division into rooms, installment of a lift and, in the case of 2a, a bigger kitchen), and 3b (2 Private Houses) scoring lowest. Disability Discrimination Act requirements have been taken into account and necessary alterations incorporated when the architectural schemes were produced.

3. “Budget costs” marks are based on the capital costs provided in Section 10 and Appendix E, with higher marks given to option with lower capital cost.

4. “Financial viability” marks are based on the level of surplus that the options are likely to generate, as detailed in Section 12.

5. “Ability to attract grant funding for capital works” marks reflect the fact that Options 1a/b and 2a/b, based on transfer of ownership to an existing or new trust, are likely to be able to attract capital grant funding, as mentioned in Section 13. Any applications for grants, particularly to bodies such as the Heritage Lottery Fund, are likely to be more successful for schemes that include a strong element of community support and generate / encourage community activities, preserve / enhance the historic fabric and setting and attract more public access to the site. The gradation of marks given to Options 1a/b and 2a/b reflects this.

Shambellie House: Options Appraisal 96 March 2014

6. “Capital / tax receipts” criterion is introduced in order to reflect the financial gain that Scottish Government is likely to have with each option. Options 3a (Private House) and 3b (Two Private Houses) will generate capital receipts and are therefore scored highest. Options 1a (Holiday Let & Community) and 2b (Holiday Let – 2 Apartments), and 2a (Cook School) and 2b (Art/Outdoor Centre), are scored lower marks, based on the long-term gain in the form of tax receipts through employment and increased spending in the area.

7. “Level of public access” marks reflect the number of people that may be able to access the building and the site, with Option 1a (Holiday Let & Community, with its community centre) and Option 2b (Arts/Outdoor Centre, including public arts & crafts events) scoring highest. The options under which the building will be open only to those paying for courses (e.g. 2a (Cook School)) or renting the holiday units (e.g. 1b (Holiday Let – 2 Apartments)) have lower marks. It is assumed that Options 1a/b and 2a/b would be open to the public during Heritage Open Days. Options 3a (Private House) and 2b (Two Private Houses) will not be accessible to the public.

8. “Scope for community participation” marks reflect the degree to which the options will encourage and facilitate local community activities and engagement. One of the main purposes of Option 1a (Holiday Let & Community) is to do just that, therefore this options scores the highest mark. The only other option that scores relatively high is 2b (Art/Outdoor Centre), because it includes an element of community engagement through events, the relationship with other organisations in the area related to outdoor, arts & crafts and the Walled Garden.

9. “Cultural and educational activities” have been the main use of Shambellie House since it was gifted to Scottish Government by the original owners. Reinforcing the Stewart family’s legacy through the continued use of the building and its surroundings for cultural and educational uses is therefore seen as an important criterion for assessing the options. The highest scoring is Option 2b (Art/Outdoor Centre), given the nature of the residential courses proposed under this option. Similar activities are part of the range envisaged for the community centre under Option 1a (Holiday Let & Community). Option 2b also includes educational uses, but none of the remaining options include such uses.

10. “Fit with Dumfries & Galloway tourism profile” - it is important to assess whether / how the options reflect the needs and aspiration outlined in tourism strategies for the wider area, as described in Section 3. In this context, Option 2b provides the best fit, although the holiday let options (1a and 1b) and Option 2b also score relatively high.

Shambellie House: Options Appraisal 97 March 2014

11. “Direct employment opportunities” marks reflect the number of new jobs / people in employment under the different options.

12. “Wider economic benefits” criterion relates to the impact the options will have on New Abbey, Dumfries and the region, in terms of bringing increased spending and indirect business opportunities. The residential course options (2a (Cook School) & 2b (Art/Outdoor Centre)), attracting bigger groups of visitors, score higher than the holiday let options (1a (Holiday Let & Community) & 1b (Holiday Let – 2 Apartments)), while the private sale options are considered to have minimal positive impact.

13. “Deliverability” criterion is related to the complexity of / the time it will take to complete capital works, find a suitable operator / set up a trust or, in terms of Options 3a (Private House) & 3b (Two Private Houses), sell the property on the open market.

14.3 Total scores and results Scores for the six options have been added up and averaged based on the number of applicable criteria (13 for Options 1a (Holiday Let & Community), 1b (Holiday Let – 2 Apartments), 2a (Cook School) and 2b (Art/Outdoor Centre) and 11 for Options 3a (Private House) and 3b (Two Private Houses)). The following Section 14.4 provides a summary of the options’ performance against the criteria.

The assessment resulted in the following order of preference from highest to lowest: 1. Option 1a (Holiday Let & Community) (3.38) 2. Option 2b (Art/Outdoor Centre) (3.31) 3. Option 1b (Holiday Let – 2 Apartments) (2.69) 4. Option 2a (Cook School) (2.62) 5. Option 3a (Private House) (2.09) 6. Option 3b (Two Private Houses) (1.82)

Two options - 1a (Holiday Let & Community) and 2b (Art/Outdoor Centre) - scored significantly higher than the rest. We recommend these two options for further consideration by the client group.

14.4 Preferred options 1a (Holiday Let & Community) and 2b (Art/Outdoor Centre) Despite its low score related to the financial surplus that it would generate, Option 1a (Holiday Let & Community) scores overall highest, due to the multiple social and economic benefits its brings to the area and the potentially straight forward delivery. With a budget cost of £430,000, and an annual surplus reaching £10,000 by Year 7 it is a less financially attractive scheme than 1b (Holiday Let – 2 Apartments). This is mainly due to the increased expenditure associated with the management of the community uses. This could

Shambellie House: Options Appraisal 98 March 2014

be mitigated by seeking external funding for the community centre manager, as outlined in Section 13. Securing a reliable end-user for the basement space would be necessary – we recommend that community uses related to visual arts, craft, landscape natural heritage and horticulture should be encouraged, to tie in with existing resources and established markets in the area. There may also be perceived issues about compatibility between up-market holiday use in the house and community use below, though this would depend on the type, duration and intensity of use. A well-established existing trust - The Vivat Trust - is interested in this option, so the realisation of the project could be relatively straight forward.

Option 2b (Art/Outdoor Centre) closely follows Option 1a (Holiday Let & Community) – it is an attractive proposition from an economic perspective and fits well with the area’s tourism strategy and offer. This option has a high budget cost of £635,000. By Year 7, it is projected to yield an annual surplus of over £46,000. This option provides ideal scope for creative activity, education and learning, and would be highly desirable given Shambellie’s artistic history and the desire for this type of use to continue, as stated in the client brief.

Option 2b depends, of course, on securing an end-user with the capital to invest in conversion and confidence in the market for specific types of residential courses. Given Dumfries & Galloway’s demonstrated strengths in environmental art, landscape, craft, sculpture and other visual arts, Shambellie House could be very attractive to such an operator. Similarly, residential courses related to the outdoors, to walking, cycling, horticulture, or field study of natural heritage would be equally well-suited in this location. Such courses could make the most of the surrounding countryside and wildlife, not to mention Shambellie Walled Garden and Shambellie Wood on the doorstep and historically linked to the House.

14.5 Other options Options 1b (Holiday Let – 2 Apartments) and 2a (Cook School) have notably similar scores.

Option 1b is an attractive option due to the lower budget cost of conversion at £385,000, relative ease of conversion and suitable use of the building. There is interest from potential end-users already, demonstrating that this could be a realistic option. It would also prove more profitable than giving over the basement to community use (as in Option 1a (Holiday Let & Community)). By Year 7 this option could potentially yield an annual surplus of over £40,000. However, the socio-economic benefits of this option, together with its ability to attract grant funding, are not as significant as those of Options 1a and 2b (Art/Outdoor Centre).

On the other hand, Option 2a is likely to be the most expensive, with a budget cost of £670,000, but it brings in a good annual surplus of over £46,000 by Year 7. Even though it

Shambellie House: Options Appraisal 99 March 2014

does include educational uses, its benefits for the community are limited and the potential impact on the historic fabric of the building higher than the above options, due to the relatively more complex interventions to the building’s fabric. Finding a suitable end user / operator for this option may be more difficult too.

Option 3a (Private House) is probably the quickest option. It should achieve a capital receipt for Scottish Government of around £650,000 through sale of the entire, unrestored property on the open market as a single principal dwelling with lodge. With an investment in upgrading (the level of which varies significantly between the estimates provided by Savills and Armour), its value is estimated to reach £800,000. It is not expected that Scottish Government would pay for such improvement works prior to the sale, and the purchaser would carry out this investment.

This option would unfortunately remove all public access to Shambellie House, and would not bring shared benefits, jobs or cultural activity. This would be likely to disappoint local people and stakeholders, given Shambellie House was gifted to the nation for cultural and educational purposes.

Option 3b (Two Private Houses) is the least favourable option because, on top of the negative aspects mentioned in relation to Option 3a (Private House) above, it will be unlikely to appeal to buyers. Typically, people looking for such a property want privacy and sufficient amenity in the form of garden and grounds, which this option will not provide.

If Scottish Government decides to proceed with either Option 3a or 3b, the proceeds from the sale could be used to further already established community projects in New Abbey and the wider Nithsdale and Stewarty region. D&GC would be best placed to identify potential groups or initiatives for the proceeds from the sale to be assigned, given their knowledge of the local area. This option would be likely to require Ministerial approval.

Shambellie House: Options Appraisal 100 March 2014

15. Conclusions and recommendations Shambellie House is a good building of its type, relatively unaltered and in a very attractive setting. The character of the House and the setting should be preserved and both preferred options in this appraisal would secure this, as well as preservation of the plan and overall character of the House. Through progressing conversations with stakeholders further, there is the opportunity to develop either of the two preferred options to a positive conclusion.

In the short-term, we recommend to Scottish Government the following next steps: • Liaise with potential end users/operators and investigate suitable asset transfer arrangements in line with the relevant procurement rules; • Draw up and carry out a maintenance plan for the House, lodge and grounds; • Continue to heat, maintain and keep secure the House and grounds with on-site security presence until acquisition by end-user; • Commission a desk-based assessment of the Collection, with assistance from D&GC and Lou Greenshields, to identify key artefacts for retention, interpretation and display at Shambellie; • Encourage ‘meanwhile uses’ in partnership with D&GC, to keep the building ‘active’ and in low-level use until works can begin on site; • Explore and support the development of related community uses (in conjunction with community /studio space in Option 1a (Holiday Let & Community)) with assistance of D&GC, New Abbey Community Council and other local stakeholders. This could include organising a one-day follow-up event at Shambellie House to identify members of the community interested in forming a charitable trust to take on the basement space; • Discuss further with agents for both Shambellie Estate and Shambellie Walled Garden how best to enable development of compatible activity and courses for residential centre; • Liaise with D&GC’s Planning Department on preferred options and necessary consents in due course; and • Further investigate the implications on the valuation done by Savills of developing the car park site for residential use and the possibility of establishing an endowment fund based on the proceeds of sale of this site, to help run the House and pay for its long-term maintenance.

Shambellie House: Options Appraisal 101 March 2014

2. A trust-based solution would guarantee continued public access. This would be highest for the preferred Options 1a (Holiday Let & Community) and 2b (Art/Outdoor Centre). Options 1b (Holiday Let – 2 Apartments) and 2a (Cook School) would also guarantee some public access, at least for Heritage Open Days and other special public or community events. Alternatively, if the House is sold to a private individual, public access would be terminated.

It is important that the preferred (non-sale) options are given the maximum chance of success, because of the social and economic benefits they bring to the area. Crucially, they should be supported by the raising of an endowment to cover the on-going long-term maintenance and repair costs which might not be met through the business. However, should enough interest not be identified within twelve months of the publication of this Options Appraisal, Scottish Government could reasonably consider the sale of the building on the open market.

Shambellie House: Options Appraisal 102 March 2014

Appendix E – QS Reports THE PRINCES REGENERATION TRUST SHAMBELLIE HOUSE, DUMFRIES

OPTION APPRAISAL BUDGET COSTS

SHAMBELLIE HOUSE OPTIONS: -

SCHEME 1a: HOLIDAY LET AND COMMUNITY USE £ 430,000 (£436/sq.m)

SCHEME 1b: HOLIDAY LET £ 385,000 (£390/sq.m)

SCHEME 2a: COOK SCHOOL £ 670,000 (£679/sq.m)

SCHEME 2b: RESIDENTIAL OUTDOOR CENTRE £ 635,000 (£644/sq.m)

SCHEME 2c: CRAFT CENTRE £ 630,000 (£639/sq.m)

SCHEME 3a: PRIVATE HOUSE £ 385,000 (£390/sq.m)

SCHEME 3b: CONVERSION INTO TWO HOUSES £ 495,000 (£502/sq.m)

SITE HOUSING OPTIONS: -

OPTION 1: HOUSES ON CAR PARK SITE £ 900,000 (£1487/sq.m)

OPTION 2: HOUSES AND ASSOCIATED STUDIO/WORKSHOP £ 825,000 (£1329/sq.m)

LODGE: -

REFURBISHMENT OF LODGE £ 85,000 (£607/sq.m)

COMMON FABRIC REPAIRS TO SHAMBELLIE HOUSE (NON-URGENT )

REPAIRS TO EXTERNAL WALLS AND ROOFS £ 60,000 (£61/sq.m)

Note: Please refer overleaf for all basis of costs, risks, and exclusions (All costs above exclude loose fittings and furniture)

11 Clairmont Gardens Reported GLASGOW G3 7LW

25th November 2013 Chartered Quantity Surveyors SHAMBELLIE HOUSE, DUMFRIES NOTES: - GENERALLY

(A) DATA BASE

The above costs have been prepared from the undernoted: - 1. Architects Drawings: - Scheme 1a: Holiday Let and Community Use Scheme 1b: Holiday Let Scheme 2a: Cook/Fabric School Scheme 2b: Residential Outdoor Centre Scheme 2c: Craft Centre Scheme 3a: Private House Scheme 3b: Conversion into Two Houses Shambelie House Condition Shambelie House Elevations Showing Repairs Shambelie House Roof Plan Showing Repairs Site Plan as Existing Site Plan - Option 2: Houses and Associated accomodation Option 1: Houses on Car Park Site Scheme 1a: Holiday Let and Community Use

(B) EXCLUSIONS

The Cost Excludes: - 1. Site acquisition costs 2. Abnormal groundworks or abnormal substructure requirements 3. Removal of any contaminated material or Asbestos 4. Diversion of existing underground services. 5. Loose equipment, furniture and fittings. 6. Variation in labour and material costs beyond the base date (Nov 2013). 7. Where Utility Connections have assumed to be necessary, these have been costed on the basis of a normal connection charge being levied by the Utility Provider. 8. Professional fees. 9. Topograpical Survey fees, Site Investigation and Statuatory Fees 10. VAT on Construction Costs and fees.

Significant Risks that could affect the accuracy of the Cost include: 1. Abnormal groundworks or substructure requirements following site investigations 2. Market conditions / inflation 3. Onerous Statuatory requirements in terms of Utility upgrades/ diversions/ new connections 4. Development of M&E requirements (no details available at date of this report) 5. Development of Structural requirements (no details available at date of this report) 6 Changes or deviation from the assumed scope of works SHAMBELLIE HOUSE, DUMFRIES ADDITIONAL NOTES

The backup costs for each Scheme has been attached to allow the basis of the costs to be clear and to assist in future design development.

Each cost has been based on an assumed scope of work as described in each individual Scheme backup.

1. Note on Scheme 1a 'Holiday Let with Community Basement': - Assumed new Utility connections will be requried.

2. Note on Scheme 1a & Scheme 1b 'Holiday Let/ Holiday Let and Community Basement': - We have been advised by the Vivat Trust that loose fittings and furnishings to an approximate value of £70,000 should be added to the contruction costs. Please note this £70k is not included in the construction costs noted on the Summary.

3. Note on Scheme 3a 'Private House': - We have assumed generally that the Private House will receive a similar level of finishes and decoration as that of the Holiday Let Scheme.

4. Note on Option 1 'Houses on Car Park Site': - We have assumed that the external car park finishes will be able to be re-used as an external hard road surface in the new development. The development has been costed using an all-in rate per m2 with some elemental changes commensurate with Simpson & Browns initial floor plan layout.

5. Note on Option 2 'Houses and Associated Accomodation': - We have assumed that the external car park finishes will be able to be re-used as an external hard road surface in the new development. The development has been costed using an all-in rate per m2 with some elemental changes commensurate with Simpson & Browns initial floor plan layout. The artist workshop is based on a GIFA of 275m2 (no drawing ldetails available at the time of the report) and a one storey 'clad-barn/shed' type construction.

6. Note on Lodge Cost: - There are no proposed drawings available for the lodge refurbishment. We have therefore based our costs on a GIFA of 140m2 (approximate measurement from the site plan drawing which indicates the lodge footprint) and have used elemental rate per m2 from similar projects to generate an overall indicative cost. SHAMBELLIE HOUSE SCHEME 1a - INDICATIVE COST APPRAISAL - HOLIDAY LET AND COMMUNITY USE Scheme 1a Holiday Let and Community Use ASSUMED WORK/BASIS GIFA ELEMENT 0 DEMOLITION £ 14,790.00 General Downtakings/strip out £ 2,500.00 Structural Downtakings £ 3,000.00 Additional downtakings - for basement partition removals 1 SUBSTRUCTURE £ 5,000.00 Allowance for re-tanking boiler room £ - 2A FRAME £ 5,000.00 Structural works- allowance for isolated steelwork (new openings etc) 2B UPPER FLOORS £ 1,000.00 Sum 2C1 ROOF STRUCTURE £ 1,000.00 Sum - assumed tanks remain 2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ - N/A 2D1 STAIR STRUCTURE £ - N/A 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ - £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 5,000.00 Allowance for new/alterations to exisitng external doors to create 2nr dwellings 2G INTERNAL WALLS AND PARTITIONS £ 12,000.00 Allowance for separating walls (circa 40m - allow for high partitions circa £275m) £ 4,500.00 Additional partitions for community use basement 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors £ 5,000.00 Additional doors for community use basement 3A WALL FINISHES £ 14,790.00 Sum 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 40,000.00 Sum allowance for 1nr main kitchen and 1nr community kitchen and sundry fittings £ - 5A SANITARY APPLIANCES £ 12,000.00 Allow £2k per bathroom/WC £ 4,000.00 Additional 2nr WC rooms on community area 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 2,400.00 allow £300 per bathroom and kitchen and utility £ 600.00 Additional 2nr WC rooms on community area 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 3,200.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water £ 800.00 Additional 2nr WC rooms on community area 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE House A £ 2,000.00 Allow for Alterations to existing boiler Community basement floor £ 2,500.00 New boiler etc for new community basement (new tank etc?...) £ - 5F SPACE HEATING AND AIR TREATMENT £ - House A £ 5,000.00 Alterations to heating pipework, re-locating radiators - allowance Community basement floor £ 7,500.00 More substantial alterations however, new pipework etc. - new rads £ - 5G VENTILATING SYSTEMS £ 4,000.00 Allow local Mech. Ventilaton to each bathroom/kitchen and WC £ 1,000.00 Additional 2nr WC rooms on community area 5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board Community basement floor £ 1,000.00 New Consumer unit £ - 5H2 ELECTRIC POWER SUPPLIES £ 19,720.00 Allowance for re-wiring, minor changes to luminaries (less substantive than complete split although may need to be upgraded to de-comercialise) Community basement floor £ 5,000.00 Extra over above for likely re- wiring due to more substantive alterations 5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 1,500.00 allowance for alterations to serve new gas boiler in Community Basement and general other alterations in House 5J LIFT AND CONVEYOR INSTALLATIONS £ - Assumed N/A 5K PROTECTIVE INSTALLATIONS £ 4,930.00 Sum allowance 5L COMMUNICATION INSTALLATIONS £ 9,860.00 Supply and installation of telephone outlets, satellite TV provision, additional smoke and fire detection installations 5M SPECIAL INSTALLATIONS £ - N/A 5N BUILDERS' WORK IN CONNECTION £ - WITH SERVICES £ 2,958.00 Sum 5O BUILDERS' PROFIT AND ATTENDANCE £ - £ - £ - 6A1 SITE PREPARATION £ 2,500.00 Sum 6A2 SURFACE TREATMENT £ 10,000.00 New road/pavings etc? 6A3 SITE ENCLOSURE AND DIVISION £ 2,500.00 Sum 6A4 FITTINGS AND FURNISHINGS £ 2,500.00 Sum 6B DRAINAGE £ 5,000.00 Allowance for alterations to below ground drainage 6C1 WATER MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works £ 3,000.00 Potential new Scottish water connection? Tracks etc.? For Community Basement 6C4 GAS MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works £ 3,000.00 Potential new Gas connection? Tracks etc.? For Community Basement 6C5 ELECTRIC MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works £ 3,000.00 Potential new Electricity connection? Tracks etc.? For Community Basement 6C6 SITE LIGHTING £ 2,500.00 Sum 6C7 OTHER MAINS AND SERVICES £ - 6D1 ANCILLARY BUILDINGS £ - 6D2 ALTERATIONS TO EXISTING BUILDINGS £ -

BUILDING WORKS £ 350,348.00

8 PRELIMINARIES 12% £ 42,041.76

9 CONTINGENCIES 10% £ 39,238.98

£ 431,628.74

INDICATIVE COST SCHEME 1a (TOTAL INCLUDING COMMON REPAIRS) EXCL. VAT £ 430,000.00 SHAMBELLIE HOUSE SCHEME 1b - INDICATIVE COST APPRAISAL - HOLIDAY LET Scheme 1b Holiday Let ASSUMED WORK/BASIS GIFA ELEMENT 0 DEMOLITION £ 14,790.00 General Downtakings/strip out £ 2,500.00 Structural Downtakings 1 SUBSTRUCTURE £ 5,000.00 Allowance for re-tanking boiler room £ - 2A FRAME £ 5,000.00 Structural works- allowance for isolated steelwork (new openings etc) 2B UPPER FLOORS £ 1,000.00 Sum 2C1 ROOF STRUCTURE £ 1,000.00 Sum - assumed tanks remain 2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ - N/A 2D1 STAIR STRUCTURE £ - N/A 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re- painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ - £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 5,000.00 Allowance for new/alterations to exisitng external doors to create 2nr dwellings 2G INTERNAL WALLS AND PARTITIONS £ 12,000.00 Allowance for separating walls (circa 40m - allow for high partitions circa £275m) 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors 3A WALL FINISHES £ 14,790.00 Sum 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 40,000.00 Sum allowance for 1nr main kitchen and 1nr caretaker kitchen and sundry fittings £ - 5A SANITARY APPLIANCES £ 12,000.00 Allow £2k per bathroom/WC 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 2,400.00 allow £300 per bathroom and kitchen and utility 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 3,200.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE House A £ 2,000.00 Allow for Alterations to existing boiler Caretaker Flat £ 2,000.00 New boiler etc for new flat (new tank etc?...) £ - 5F SPACE HEATING AND AIR TREATMENT £ - House A £ 5,000.00 Alterations to heating pipework, re-locating radiators - allowance Caretaker Flat £ 3,000.00 More substantial alterations however smaller flat, new pipework etc. - new rads? £ - 5G VENTILATING SYSTEMS £ 4,000.00 Allow local Mech. Ventilaton to each bathroom/kitchen and WC 5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board Caretaker Flat £ 1,000.00 New Consumer unit and alterations £ - 5H2 ELECTRIC POWER SUPPLIES £ 19,720.00 Allowance for re-wiring, minor changes to luminaries (less substantive than complete split although may need to be upgraded to de-comercialise) 5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 1,500.00 allowance for alterations to serve new gas boiler in Caretaker Flat and general other alterations in House 5J LIFT AND CONVEYOR INSTALLATIONS £ - Assumed N/A 5K PROTECTIVE INSTALLATIONS £ 4,930.00 Sum allowance 5L COMMUNICATION INSTALLATIONS £ 9,860.00 Supply and installation of telephone outlets, satellite TV provision, additional smoke and fire detection installations 5M SPECIAL INSTALLATIONS £ - N/A 5N BUILDERS' WORK IN CONNECTION £ - WITH SERVICES £ 2,958.00 Sum 5O BUILDERS' PROFIT AND ATTENDANCE £ - £ - £ - 6A1 SITE PREPARATION £ 2,500.00 Sum 6A2 SURFACE TREATMENT £ 10,000.00 New road/pavings etc? 6A3 SITE ENCLOSURE AND DIVISION £ 2,500.00 Sum 6A4 FITTINGS AND FURNISHINGS £ 2,500.00 Sum 6B DRAINAGE £ 5,000.00 Allowance for alterations to below ground drainage 6C1 WATER MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C4 GAS MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C5 ELECTRIC MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C6 SITE LIGHTING £ 2,500.00 Sum 6C7 OTHER MAINS AND SERVICES £ - 6D1 ANCILLARY BUILDINGS £ - 6D2 ALTERATIONS TO EXISTING BUILDINGS £ - BUILDING WORKS £ 312,448.00

8 PRELIMINARIES 12% £ 37,493.76

9 CONTINGENCIES 10% £ 34,994.18

£ 384,935.94

INDICATIVE COST SCHEME 1b (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 385,000.00 SHAMBELLIE HOUSE SCHEME 2a - INDICATIVE COST APPRAISAL - CONVERSION TO COOK SCHOOL Scheme 2a Conversion to Cook School ASSUMED WORK/BASIS

ELEMENT 0 DEMOLITION £ 24,650.00 General Downtakings/strip out £ 12,500.00 Structural Downtakings (for lift etc.) £ - 1 SUBSTRUCTURE £ 5,000.00 Allowance for re-tanking boiler room £ 7,500.00 Allowance for lift pit

£ - 2A FRAME £ 5,000.00 Structural works- allowance for isolated steelwork (new openings etc) £ 7,500.00 Structural works associated with new lift openings - allow £2,500 per affected floor £ 10,000.00 Allowance for additional structural alterations on first floor- substantial slab throughs

2B UPPER FLOORS £ 3,000.00 work to upper floors in respect of repairs/ alterations for lift £ 5,000.00 Additional work to first and second floors where floor extended over previous stair

2C1 ROOF STRUCTURE £ 5,000.00 Allowance for removal of tanks

2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ 7,500.00 Allowance for rooflights 2D1 STAIR STRUCTURE £ 7,000.00 Allowance for new stair flights at first floor 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ 4,000.00 New balustrades and handrails to stair flights £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 2,500.00 Allowance for alterations to existing external doors 2G INTERNAL WALLS AND PARTITIONS £ 15,000.00 Allowance for separating walls at lift (circa 50m - allow for high partitions circa £275m) £ 8,400.00 Allowance for standard high separating partitions (allow circa £120/m) 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors £ - 3A WALL FINISHES £ 19,720.00 Sum- increased for skim coat repairs etc. 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 60,000.00 Sum allowance for 1nr full catering training kitchen, prep kitchen, appliances and sundry fittings £ 7,500.00 Sum allowance for laundry 5A SANITARY APPLIANCES £ 20,000.00 Allow £2k per bathroom/WC £ 8,000.00 Allow £4k for communal bathrooms £ 7,000.00 Allowance for cubicle partitions and IPS etc. 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 3,000.00 allow £300 per bathroom £ 1,000.00 allow £1,000 for training kitchen £ 300.00 allow £300 for laundry £ 1,000.00 allow £500 per communal toilet 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 5,600.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE £ 2,500.00 Allow for Alterations to existing boiler £ - 5F SPACE HEATING AND AIR TREATMENT£ 29,580.00 Substantial alterations to heating pipework

5G VENTILATING SYSTEMS £ 6,500.00 Allow local Mech. Ventilaton to each bathroom/laundry and WC £ 5,000.00 Allowance for ventilation for training kitchen

5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board £ 2,000.00 New db - 3-phase for lift??

5H2 ELECTRIC POWER SUPPLIES £ 29,580.00 Allowance for substantive re- wiring

5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 3,000.00 allowance for extending gas supply for training kitchen hobs etc.

5J LIFT AND CONVEYOR INSTALLATIONS £ 30,000.00 Allowance for 1nr passenger lift- substructure elsewhere 5K PROTECTIVE INSTALLATIONS £ 4,930.00 Sum allowance 5L COMMUNICATION INSTALLATIONS £ 14,790.00 Supply and installation of door entry, telephone outlets, satellite TV provision etc. 5M SPECIAL INSTALLATIONS £ - N/A 5N BUILDERS' WORK IN CONNECTION £ - WITH SERVICES £ 9,860.00 Sum- increased to cover potentially 'sensitive' routes through cornicing/feature areas 5O BUILDERS' PROFIT AND ATTENDANCE £ - £ - £ - 6A1 SITE PREPARATION £ 2,500.00 Sum 6A2 SURFACE TREATMENT £ 10,000.00 New road/pavings etc? 6A3 SITE ENCLOSURE AND DIVISION £ 2,500.00 Sum 6A4 FITTINGS AND FURNISHINGS £ 2,500.00 Sum 6B DRAINAGE £ 10,000.00 Allowance for alterations to below ground drainage- increased to cover potential additional below ground drainage to serve increased toilet capacity 6C1 WATER MAINS £ 500.00 assumed can be served off existing mains - allowance only for sundry works 6C4 GAS MAINS £ 500.00 assumed can be served off existing mains - allowance only for sundry works 6C5 ELECTRIC MAINS £ 500.00 assumed can be served off existing mains - allowance only for sundry works 6C6 SITE LIGHTING £ 2,500.00 Sum 6C7 OTHER MAINS AND SERVICES £ - 6D1 ANCILLARY BUILDINGS £ - 6D2 ALTERATIONS TO EXISTING BUILDINGS£ -

BUILDING WORKS £ 543,210.00

8 PRELIMINARIES £ 65,185.20 9 CONTINGENCIES £ 60,839.52

£ 669,234.72

INDICATIVE COST SCHEME 2a (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 670,000.00 SHAMBELLIE HOUSE SCHEME 2b - INDICATIVE COST APPRAISAL - RESIDENTIAL OUTDOOR CENTRE Scheme 2B Residential Outdoor Centre ASSUMED WORK/BASIS

2B UPPER FLOORS £ 3,000.00 work to upper floors in respect of repairs/ alterations for lift £ 5,000.00 Additional work to first and second floors where floor extended over previous stair

2C1 ROOF STRUCTURE £ 5,000.00 Allowance for removal of tanks

2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ 7,500.00 Allowance for rooflights 2D1 STAIR STRUCTURE £ 7,000.00 Allowance for new stair flights at first floor 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ 4,000.00 New balustrades and handrails to stair flights £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 2,500.00 Allowance for alterations to existing external doors 2G INTERNAL WALLS AND PARTITIONS £ 15,000.00 Allowance for separating walls at lift (circa 50m - allow for high partitions circa £275m) £ 8,400.00 Allowance for standard high separating partitions (allow circa £120/m) 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors £ - 3A WALL FINISHES £ 19,720.00 Sum- increased for skim coat repairs etc. 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 33,000.00 Basement kitchen, workshop and locker room fit out £ 7,500.00 Sum allowance for laundry room 5A SANITARY APPLIANCES £ 20,000.00 Allow £2k per bathroom/WC £ 8,000.00 Allow £4k for communal bathrooms £ 7,000.00 Allowance for cubicle partitions and IPS etc. 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 3,000.00 allow £300 per bathroom £ 1,000.00 allow £1,000 for training kitchen £ 300.00 allow £300 for laundry £ 1,000.00 allow £500 per communal toilet 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 5,600.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE £ 2,500.00 Allow for Alterations to existing boiler £ - 5F SPACE HEATING AND AIR TREATMENT£ 29,580.00 Substantial alterations to heating pipework

5G VENTILATING SYSTEMS £ 6,500.00 Allow local Mech. Ventilaton to each bathroom/laundry and WC £ 5,000.00 Allowance for ventilation for training kitchen

5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board £ 2,000.00 New db - 3-phase for lift??

5H2 ELECTRIC POWER SUPPLIES £ 29,580.00 Allowance for substantive re- wiring

5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 3,000.00 allowance for extending gas supply for training kitchen hobs etc.

BUILDING WORKS £ 516,210.00

8 PRELIMINARIES £ 61,945.20 9 CONTINGENCIES £ 57,815.52

£ 635,970.72

INDICATIVE COST SCHEME 2b (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 635,000.00 SHAMBELLIE HOUSE SCHEME 2c - INDICATIVE COST APPRAISAL - CRAFT CENTRE Scheme 2C Craft Centre ASSUMED WORK/BASIS

2B UPPER FLOORS £ 3,000.00 work to upper floors in respect of repairs/ alterations for lift £ 5,000.00 Additional work to first and second floors where floor extended over previous stair

2C1 ROOF STRUCTURE £ 5,000.00 Allowance for removal of tanks

2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ 7,500.00 Allowance for rooflights 2D1 STAIR STRUCTURE £ 7,000.00 Allowance for new stair flights at first floor 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ 4,000.00 New balustrades and handrails to stair flights £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 2,500.00 Allowance for alterations to existing external doors 2G INTERNAL WALLS AND PARTITIONS £ 15,000.00 Allowance for separating walls at lift (circa 50m - allow for high partitions circa £275m) £ 8,400.00 Allowance for standard high separating partitions (allow circa £120/m) 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors £ - 3A WALL FINISHES £ 19,720.00 Sum- increased for skim coat repairs etc. 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 30,000.00 Basement kitchen and workshop fit out £ 7,500.00 Sum allowance for laundry 5A SANITARY APPLIANCES £ 20,000.00 Allow £2k per bathroom/WC £ 8,000.00 Allow £4k for communal bathrooms £ 7,000.00 Allowance for cubicle partitions and IPS etc. 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 3,000.00 allow £300 per bathroom £ 1,000.00 allow £1,000 for training kitchen £ 300.00 allow £300 for laundry £ 1,000.00 allow £500 per communal toilet 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 5,600.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE £ 2,500.00 Allow for Alterations to existing boiler £ - 5F SPACE HEATING AND AIR TREATMENT£ 29,580.00 Substantial alterations to heating pipework

5G VENTILATING SYSTEMS £ 6,500.00 Allow local Mech. Ventilaton to each bathroom/laundry and WC £ 5,000.00 Allowance for ventilation for training kitchen

5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board £ 2,000.00 New db - 3-phase for lift??

5H2 ELECTRIC POWER SUPPLIES £ 29,580.00 Allowance for substantive re- wiring

5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 3,000.00 allowance for extending gas supply for training kitchen hobs etc.

BUILDING WORKS £ 513,210.00

8 PRELIMINARIES £ 61,585.20 9 CONTINGENCIES £ 57,479.52

£ 632,274.72

INDICATIVE COST SCHEME 2c (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 630,000.00 SHAMBELLIE HOUSE SCHEME 3a - INDICATIVE COST APPRAISAL - Private House Scheme 3a Private House ASSUMED WORK/BASIS

ELEMENT 0 DEMOLITION £ 14,790.00 General Downtakings/strip out £ 2,500.00 Structural Downtakings 1 SUBSTRUCTURE £ 5,000.00 Allowance for re-tanking boiler room £ - 2A FRAME £ 5,000.00 Structural works- allowance for isolated steelwork (new openings etc) 2B UPPER FLOORS £ 1,000.00 Sum 2C1 ROOF STRUCTURE £ 1,000.00 Sum - assumed tanks remain 2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ - N/A 2D1 STAIR STRUCTURE £ - N/A 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ - £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 3,000.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 1,000.00 General alterations 2G INTERNAL WALLS AND PARTITIONS £ 10,500.00 Allowance for separating walls (circa 40m - allow for high partitions circa £275m) 2H INTERNAL DOORS £ 18,000.00 Sum for replacement internal doors 3A WALL FINISHES £ 14,790.00 Sum 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 40,000.00 Sum allowance for 1nr main kitchen and 1nr caretaker kitchen and sundry fittings £ - 5A SANITARY APPLIANCES £ 12,000.00 Allow £2k per bathroom/WC £ 2,000.00 extra showerroom 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 2,700.00 allow £300 per bathroom and kitchen and utility 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 3,600.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE House A £ 2,000.00 Allow for Alterations to existing boiler £ - 5F SPACE HEATING AND AIR TREATMENT£ - House A £ 6,000.00 Alterations to heating pipework, re-locating radiators - allowance £ - 5G VENTILATING SYSTEMS £ 4,500.00 Allow local Mech. Ventilaton to each bathroom/kitchen and WC 5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board £ - 5H2 ELECTRIC POWER SUPPLIES £ 19,720.00 Allowance for re-wiring, minor changes to luminaries (less substantive than complete split although may need to be upgraded to de-comercialise) 5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 500.00 allowance for general alterations 5J LIFT AND CONVEYOR INSTALLATIONS £ - Assumed N/A 5K PROTECTIVE INSTALLATIONS £ 4,930.00 Sum allowance 5L COMMUNICATION INSTALLATIONS £ 9,860.00 Supply and installation of telephone outlets, satellite TV provision, additional smoke and fire detection installations 5M SPECIAL INSTALLATIONS £ - N/A 5N BUILDERS' WORK IN CONNECTION £ - WITH SERVICES £ 2,958.00 Sum 5O BUILDERS' PROFIT AND ATTENDANCE £ - £ - £ - 6A1 SITE PREPARATION £ 2,500.00 Sum 6A2 SURFACE TREATMENT £ 10,000.00 New road/pavings etc? 6A3 SITE ENCLOSURE AND DIVISION £ 2,500.00 Sum 6A4 FITTINGS AND FURNISHINGS £ 2,500.00 Sum 6B DRAINAGE £ 5,000.00 Allowance for alterations to below ground drainage 6C1 WATER MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C4 GAS MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C5 ELECTRIC MAINS £ 500.00 assumed both can be served off existing mains - allowance only for sundry works 6C6 SITE LIGHTING £ 2,500.00 Sum 6C7 OTHER MAINS AND SERVICES £ - 6D1 ANCILLARY BUILDINGS £ 8,000.00 Refurbish store; provide lighting, garage doors; 6D2 ALTERATIONS TO EXISTING BUILDINGS£ -

BUILDING WORKS £ 310,148.00

8 PRELIMINARIES £ 37,217.76 9 CONTINGENCIES £ 34,736.58

£ 382,102.34

INDICATIVE COST SCHEME 3a (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 385,000.00 SHAMBELLIE HOUSE SCHEME 3b - INDICATIVE COST APPRAISAL - CONVERSION TO TWO HOUSES Scheme 3b Conversion to Two Houses ASSUMED WORK/BASIS

ELEMENT 0 DEMOLITION £ 19,720.00 General Downtakings/strip out £ 7,500.00 Structural Downtakings

1 SUBSTRUCTURE £ 5,000.00 Allowance for re-tanking boiler room £ - 2A FRAME £ 7,500.00 Structural works- allowance for isolated steelwork (new openings etc) 2B UPPER FLOORS £ 7,500.00 Repairs/infilling upper floors 2C1 ROOF STRUCTURE £ 5,000.00 Sundry allowance for roof structure alterations (removal of steel beams for tank supports etc.) 2C2 ROOF COVERINGS £ 5,000.00 Allowance for insulation upgrade 2C3 ROOF DRAINAGE £ - 2C4 ROOFLIGHTS £ 7,500.00 Allowance for introduction or renewal of rooflights 2D1 STAIR STRUCTURE £ 10,000.00 Allowance for new stair structure - basement to GF 2D2 STAIR FINISHES £ 25,000.00 (Assumes new nosings, finishes to treads and risers and re-painting) - say £2,500 per floor per stair) 2D3 BALUSTRADES AND HANDRAILS £ 3,000.00 new balustrade- basement £ 7,500.00 repairs and decoration to remainder 2E EXTERNAL WALLS £ - 2F1 WINDOWS £ 2,500.00 Assumed existing windows in good state of repair (allowance for isolated changes such as obscure glazing? And minor repairs) 2F2 EXTERNAL DOORS £ 5,000.00 Allowance for new/alterations to exisitng external doors to create 2nr dwellings 2G INTERNAL WALLS AND PARTITIONS £ 30,000.00 Allowance for separating walls (circa 100m - allow for high partitions circa £275m) 2H INTERNAL DOORS £ 20,000.00 Sum for replacement internal doors £ - 3A WALL FINISHES £ 14,790.00 Sum 3B FLOOR FINISHES £ 29,580.00 Sum 3C1 FINISHES TO CEILINGS £ 19,720.00 Sum 3C2 SUSPENDED CEILINGS £ - £ - 4 FITTINGS AND FURNISHINGS £ 40,000.00 Sum allowance for 2nr kitchens and sundry fittings 5A SANITARY APPLIANCES £ 18,000.00 Allow £2k per bathroom/WC 5B SERVICES EQUIPMENT £ - incl 4A1 5C1 INTERNAL DRAINAGE £ 3,600.00 allow £300 per bathroom and kitchen and utility 5C2 REFUSE DISPOSAL £ - 5D1 MAINS SUPPLY £ 4,800.00 allow £400 per bathroom/kitchen/WC/Utility for hot and cold water 5D2 COLD WATER SERVICE £ - 5D3 HOT WATER SERVICE £ - 5D4 STEAM AND CONDENSATE £ - 5E HEAT SOURCE House A £ 2,000.00 Allow for Alterations to existing boiler House B £ 2,000.00 New boiler etc for new flat (new tank etc?...) £ - 5F SPACE HEATING AND AIR TREATMENT£ - House A £ 5,000.00 Alterations to heating pipework, re-locating radiators - allowance House B £ 6,000.00 More substantial alterations however smaller flat, new pipework etc. - new rads? £ - 5G VENTILATING SYSTEMS £ 6,000.00 Allow local Mech. Ventilaton to each bathroom/kitchen and WC

5H1 ELECTRIC SOURCE AND MAINS £ - House A £ 1,500.00 Alterations to existing consumer unit/board House B £ 1,000.00 New Consumer unit £ - 5H2 ELECTRIC POWER SUPPLIES £ 24,650.00 Allowance for re-wiring (likely to be reasonably substantive? Due to alterations and split 5H3 ELECTRIC LIGHTING £ - incl 5H2 5H4 ELECTRIC LIGHTING FITTINGS £ - incl 5H3 5I GAS INSTALLATION £ 3,000.00 allowance for alterations to serve new gas boiler in House B and general other alterations in House A 5J LIFT AND CONVEYOR INSTALLATIONS £ - Assumed N/A 5K PROTECTIVE INSTALLATIONS £ 4,930.00 Sum allowance 5L COMMUNICATION INSTALLATIONS £ 9,860.00 Supply and installation of telephone outlets, satellite TV provision, additional smoke and fire detection installations 5M SPECIAL INSTALLATIONS £ - N/A 5N BUILDERS' WORK IN CONNECTION WITH SERVICES £ 2,958.00 Sum 5O BUILDERS' PROFIT AND ATTENDANCE £ - N/A

6A1 SITE PREPARATION £ 2,500.00 Sum 6A2 SURFACE TREATMENT £ 10,000.00 New road/pavings etc? 6A3 SITE ENCLOSURE AND DIVISION £ 2,500.00 Sum 6A4 FITTINGS AND FURNISHINGS £ 2,500.00 Sum 6B DRAINAGE £ 5,000.00 Allowance for alterations to below ground drainage 6C1 WATER MAINS £ 5,000.00 New incoming water mains serving House B 6C4 GAS MAINS £ 3,000.00 New incoming gas mains serving House B 6C5 ELECTRIC MAINS £ 3,000.00 New incoming electric mains serving House B 6C6 SITE LIGHTING £ 2,500.00 Sum 6C7 OTHER MAINS AND SERVICES £ - 6D1 ANCILLARY BUILDINGS £ - 6D2 ALTERATIONS TO EXISTING BUILDINGS£ -

BUILDING WORKS £ 403,108.00

8 PRELIMINARIES (Allowance at 12%) £ 48,372.96 9 CONTINGENCIES (Allowance at 10%) £ 45,148.10

£ 496,629.06

INDICATIVE COST SCHEME 3b (TOTAL EXCLUDING COMMON REPAIRS) EXCL. VAT £ 495,000.00 Appendix F - Stakeholder Workshop Report

Future options for Shambellie House, New Abbey

Stakeholder Workshop, 8 October 2013

Contents

1.0 Executive Summary 2

2.0 Background 3

3.0 Shambellie House, its history & setting 3

3.1 David Bryce & Shambellie House

3.2 Shambellie House and the National Museum of Costume

3.3 Shambellie House and Estate

3.4 New Abbey

4.0 The Shambellie House Stakeholder Workshop 7

4.1 The Prince’s Regeneration Trust & Stakeholder Workshops

4.2 Shambellie House Stakeholder Workshop attendees

4.3 Specialist Expertise

4.4 Presentations

5.0 Results of the break-out groups 15

5.1 SWOT analysis results

5.2 Process for identifying potential uses and users

5.3 Users & uses

5.4 Preferred uses

6.0 Conclusion 23

Appendices

A List of attendees 24

B Stakeholder workshop programme 27

1.0 Executive summary

This report summarises the outcomes of a stakeholder workshop facilitated by The Prince’s Regeneration Trust (PRT), held as part of our work towards the production of an Options Appraisal for Shambellie House, New Abbey, Dumfries & Galloway, Scotland. The day was attended by a wide cross-section of stakeholders including members of the local community, national and regional public bodies, and national and regional businesses with an interest in the site’s redevelopment.

The event confirmed the significance of Shambellie House as a good example of Victorian Scottish Baronial architecture, and as a key asset to the New Abbey community and the wider Dumfries & Galloway region. It was clear that there was a drive amongst stakeholders to see a sustainable and viable future found for the House, ideally for the benefit of the local community, and for the economy of the village and the wider region.

The scope of change that could be considered was outlined and some of the key issues explored. A wide range of potential uses and users were identified and a select few recommended to be developed in more detail in the full Options Appraisal.

The purpose of this report is to draw together the findings of the day and help inform the subsequent work that will be undertaken to identify future options for Shambellie House, as well as acting as a record for attendees of the workshop.

2.0 Background

In July 2013, Dumfries & Galloway Council (D&GC), in conjunction with the Scottish Government (SG) and National Museums Scotland (NMS), invited tenders for the production of a feasibility study to help scope future options for Shambellie House. PRT proposed to conduct a thorough investigation of all feasible options through the production of an Options Appraisal.

As part of the work towards the Options Appraisal, PRT proposed a Stakeholder Workshop, to bring together all of the principal parties in order to:

• establish the aspirations of the local community and wider stakeholders for the future of Shambellie House

• develop issues around possible viable and sustainable future uses.

Following tender interviews in August 2013, PRT was appointed to carry out the work. After the initial background research and preparation, PRT held the Stakeholder Workshop at New Abbey Village Hall on the 8th October 2013. This report summarises:

• the background to the day

• the information provided and issues raised during the morning presentations and the Q&A session that followed

• the results of the afternoon breakout sessions, focusing on SWOT analysis and discussions on the potential new uses for Shambellie House and its immediate surroundings

• key recommendations to inform the full Options Appraisal.

3.0 Shambellie House, its history & setting

3.1 David Bryce & Shambellie House

Shambellie House was built by William Stewart (1815-74) and completed in 1858. Stewart’s architect was David Bryce, born in Edinburgh in 1803. Bryce learnt his trade firstly through training at an architectural academy established by his older brother, William, and later in the practice of William Burn, the most successful country house architect of the 19th century in Scotland. In 1844, Burn took Bryce into partnership, partly because Bryce was now attracting commissions of his own right, and partly to allow Burn to move his office to London to concentrate on his English and Irish clients, leaving Bryce to deal with the practice’s Scottish business. Through this partnership and his later career, Bryce came to refine and promote the Scottish Baronial style in domestic architecture, and in his partnership with Burn promoted an architectural style for large country houses which depended on the history of

Scottish houses between the 15th and 17th centuries. The houses built by Bryce during his career ranged from relatively small estate houses, such as Shambellie, through villas to some of the largest country houses built in Scotland during the 19th century.

When Bryce received the commission for Shambellie, he designed a much larger house that Stewart could afford. The house that was eventually built was a smaller version of the same layout, but shorn of some detail; however, the work still came in over budget, and Bryce’s failure to meet the cost restrictions led to a difficult relationship between himself and Stewart, leading Bryce to resign from the project on two separate occasions. The building was left without finished attics in order to reduce costs. The completion of these in 1866 was undertaken by James Barbour, an architect based in Dumfries, who also designed the gate lodge in 1864.

David Bryce (1803 – 1876)

Shambellie acted as a private residence for the Stewart family until 1977, at which time William’s great grandson, Charles Stewart, donated the House and gardens to the Secretary of State for the Environment. Charles, who made his career as a book illustrator, is known for his remarkable collection of over six thousand costumes collected over the course of his life, spanning over three centuries. His collection was separately gifted to the National Museums Scotland in 1977, and forms part of the national costume and textile collection, now largely stored at the National Museums Collection Centre in Edinburgh.

Shambellie was given a Category B listing in 1971, with the lodge and gatepiers being granted the same listing in 1986. The House also sits within the Nith Estuary National Scenic Area, which is managed by D&GC.

3.2 Shambellie House and the National Museum of Costume

NMS maintained Shambellie House from 1978 and first opened it as the Shambellie House Costume Museum in 1982. It was subsequently renamed the National Museum of Costume as part of a brand review in 2006. The museum presented a series of core exhibitions

examining fashion and social etiquette from the 1870s to the 1950s, with pieces from Charles’ costume collection forming the centrepieces of the displays, augmented by a loan collection of over 100 local and family history items from relatives of the Stewart family. In addition to the main exhibition, the museum put on a special exhibition each year focusing on a particular period or movement in history.

Poster for the Shambellie House ‘Off the Peg’, 2012 special exhibition

The museum opened to the public seasonally, from 10am to 5pm, April to October. In 2012, it attracted 15,800 visitors, 9,500 of which visited the museum itself, with the remaining 6,300 visiting the shop, on-site café or the wider estate only. A number of studies done on the visitor profile of the museum concluded that its core audience consisted of visitors over 45, and that the majority were female.

For a number of factors, NMS decided not to re-open the museum for the 2013 season. The reasons for this are discussed in more detail in section 4.4.1.

3.3 Shambellie House and Estate

The site of Shambellie House site consists of 2.3 hectares of land immediately around the house, along with the drive, lodge and a 25m tree belt running around the exterior. Beyond this lies the Shambellie Estate, approximately 2,000 acres of agricultural and amenity land, and commercial woodland. The Estate is managed by GM Thomson & Co on behalf of the estate Trustees, and is open to the public for walking and cycling. It contains areas of broadleaf

woodland of high amenity value, conifer woodland of high silvicultural value, and a 200-year- old lime avenue.

Historical map of Shambellie House and grounds

3.4 New Abbey

The village of New Abbey lies 300m south of Shambellie House, and has a population of around 300. New Abbey has a number of historical sites, most notably the ruined Cistercian Sweetheart Abbey, founded by Lady Devorgilla in 1273 in memory of her husband John Balliol. The village also contains the New Abbey Corn Mill, an 18th century water-powered mill built by the Stewarts of Shambellie House, restored to full working order by Historic Scotland. Other attractions in the village include the Shambellie Walled Garden, which sits inside the Shambellie Estate, brought back to life in 2005 having been abandoned in the 1960s, the New Abbey Tea Rooms, two pubs, an antiques business and the local village shop.

Sweetheart Abbey, New Abbey

4.0 The Shambellie House Stakeholder Workshop

4.1 The Prince’s Regeneration Trust and Stakeholder Workshops

PRT supports and strengthens communities by rescuing and reusing important British buildings at risk of being lost through demolition or decay. Our priority is to work in areas of deprivation; the places that will benefit most from the regeneration and economic growth we deliver.

Our projects unlock an area’s potential through new employment, training and educational opportunities and by simply allowing the community and key stakeholders to engage and enjoy their surrounding environment. We work collaboratively with community groups, building owners, developers, local authorities and other organisations to save Britain’s heritage. We form cross-sector partnerships with schools, universities and businesses to ensure regeneration is inclusive and far-reaching. We also work with the other Prince’s Charities in areas such as the built environment, education, enterprise, creativity, business and the community.

A stakeholder workshop is one of the tools PRT uses to deliver its aims. It is usually a one- day event for members of the local community and key stakeholders to discuss and develop ideas for reusing a building or site of historic significance. The day consists of a site visit, followed by presentations where key stakeholders, including the local authority and members of the local community, are invited to set out their aspirations for the building. Technical presentations on the building’s significance and regeneration are explained together with an

understanding of any relevant constraints. Group sessions are then held to discuss strengths, weaknesses, opportunities and threats (SWOT), to develop potential uses and users and suggest next steps. The importance of the event is to understand stakeholders’ requirements for the site or building and to potentially identify end users from the community and beyond who may be prepared to deliver the options that have been identified.

4.2 Shambellie House Stakeholder Workshop attendance

50 people were invited to the Shambellie House stakeholder workshop, with 32 attending. A list of attendees is attached as Appendix I.

Attendance included representatives of each of the following groups and interests: • The Scottish Government • National Museums of Scotland • Historic Scotland • Dumfries & Galloway Council • New Abbey Community Council • Dumfries & Galloway Chamber of Commerce • Destination Dumfries & Galloway • Scottish Natural Heritage • Southern Uplands Partnership • The Stewart family & the Shambellie Estate • Local and national businesses • Members of the local community & community groups. Before the event, attendees were given the opportunity to visit Shambellie House to familiarise themselves with the building, with John Sanders of Simpson & Brown Architects leading as a guide.

4.3 Specialist Expertise

The day was chaired by Biljana Savic, Interim Operations Director at PRT. Biljana has over twenty years of professional experience gained in a number of roles related to the built environment, which includes experience of stakeholder consultation and engagement during her time at The Prince’s Foundation for Building Community and The Commission for Architecture and the Built Environment.

In order that the stakeholder workshop would be grounded in ideas that are likely to be achievable, expert leadership was brought in for the break-out groups. Biljana chaired one of these groups, with the others being led by:

• Pauline Megson, Projects Adviser, PRT; Pauline is the project lead for the Shambellie House Options Appraisal, and took the lead role in organising the Stakeholder Workshop. Pauline has gained considerable experience at PRT of developing and delivering projects to reuse redundant historic buildings throughout Scotland, including Flagstone Cottages in Castletown, Caithness, which have been repaired and converted for reuse for specialist holiday let; Perth City Hall, where Pauline is co-ordinating the Steering Group to advance the project and agree a development proposal; and John O’Groats Mill, where Pauline organised a successful stakeholder’s workshop.

• John Sanders, Partner, Simpson & Brown Architects; John is the lead architect for the Shambellie House Options Appraisal. He has significant personal experience of working on the repair and restoration of important Scottish Country Houses at Auchendennan, Blairesk Hall, Lews Castle and House of Falkland. John’s particular areas of expertise include establishing the development potential of historic buildings, carrying out condition assessments and undertaking options appraisals.

4.4 Presentations

During the morning session, attendees heard presentations from a range of stakeholders in order to provide a thorough background to the project and the opportunities and challenges it would face.

4.4.1 Peter Williamson, Head of Enterprises, National Museums Scotland

Peter began by providing an outline of why NMS chose to close the National Museum of Costume. A range of reasons were quoted, including:

• The Museum was run at a cost of £220,000 in 2012. Income from the shop and café only provided £20,000, which meant that NMS was required to cover the shortfall of £200,000. This proved particularly difficult during recent years with the challenging economic climate for all public institutions.

• Visitor numbers were reported to increase an extra 10-15% once NMS began to put on special exhibitions from the mid-2000s; however, the extra cost of between £10- 15,000 nulled the financial benefits.

• NMS spent £30,000 annually marketing the site, which is a large amount given its size. This equated to £2.80 per visitor; with entry to the museum charged at £3.50, this was seen as a highly disproportionate spend.

• Attracting a wider demographic of visitors, and therefore an increase in visitor numbers, proved difficult. Attracting school visits proved a particular problem; only 154 schoolchildren visited the site in 2012.

• The building and grounds were small for a national museum. This created a number of problems. Firstly, it limited the number of pieces of Stewart’s collection that could be displayed on site, with the large majority being held in storage in Edinburgh. Secondly, the small size of the grounds meant that coach parties were unable to park at the House, instead having to use the car park at the bottom of the hill. The museum also looked into holding events in the house and grounds in order to generate extra income, but this proved impossible inside the house due to its size and the existence of the collections. The two weddings that did take place in the grounds weren’t profitable, and were beset by logistical problems for those servicing the wedding, such as the caterers, due to the lack of space.

• The nature of the site, with the House sitting at the top of a hill, set back from the road where the car park was located, meant disabled visitors often struggled to reach the museum. In addition, there was no disabled access to the first floor of the house, where a large proportion of the museum display and the special exhibition were on show.

• The on-site café struggled financially, with a different operator taking on the site each year following the 2005 rebrand. Inconsistent visitor numbers meant that planning for each day was impossible, and special events held by each contractor did little to bring in sufficient income. NMS ran the franchise itself in 2007, and this still had to be subsidised.

Peter concluded that, whilst the National Museum of Costume had the highest satisfaction rating of all the NMS sites and was rated as a 5* visitor attraction by Visit Scotland, it was simply not financially viable for NMS to continue running the museum in its current guise.

4.4.2 Peter Barrett, Member, New Abbey Community Council

Peter spoke representing the views of the local community as to what they would like to see for Shambellie House’s future. The community saw the house as an integral part of the three main attractions in New Abbey, along with Sweetheart Abbey and the Corn Mill. The departure of the museum has been seen to put pressure on the other attractions in the village. The museum was seen as an important employer for the area, providing a number of full and part time jobs for local residents.

Peter went on to describe how the village is considered to be thriving in general, and noted that last year it won the 2012 Best Small Village in Scotland award. It is home to a number of clubs and societies, and holds an annual garden safari, which draws in over 100 visitors. With the attractions the village has to offer, and the pride the local community has for New

Abbey, the Community Council believe that ‘something’ has to be done with Shambellie House; the worst eventuality is that nothing happens. Any attraction would need to complement those that already exist in the village, and therefore in turn would need to involve, at least if only in the planning stage, members of the community.

4.4.3 John Sanders, Partner, Simpson & Brown Architects

John focused on the architectural history of Shambellie House, detailing its construction under Bryce to the present day. Bryce’s overspend shows in the history of the house, as very little has been done to it since. This helps to give the house its unique character. In 1897 there were plans drawn up by James Barbour to add a tower to the side of the house for billiards, but this was never realised.

Shambellie was built in order to provide its residents with views over the landscape to the east, and this is evidenced by the important rooms facing eastwards. Bryce intended his house to sit in the landscape in a way which imitated the quality of Scottish houses at the centre of a country estate, and this historical aspect lends weight to the importance of the surrounding woodland and Estate to the house.

John noted that it was in a way fortunate for the house that NMS took ownership when it did. Many houses of Shambellie’s period required major works around a century after construction due to the types of materials used. Upon taking ownership, NMS carried out a substantial package of repair, conservation and minor alterations, which addressed a number of pressing structural issue. Because of this, the house stands today in remarkably good condition, with relatively little needing to be done to bring it back into use. A key aspect is that there are no significant signs of damp in the building.

John finished by outlining a number of potential options that he had sketched out as a prompt for the afternoon session of the workshop and to illustrate the challenges related to the building’s envelope, its spatial arrangement and historic features. The options were;

• Conversion into a six bed holiday let, with relatively minor internal alterations and no requirement for a lift

• Conversion into a centre for residential training, including accommodation for up to 10 people and a lift providing public access to upper levels - John highlighted the house’s size as an issue, as well as the significant alterations to the fabric of the building and costs associated with the introduction of a lift

• To return to the building’s original use as a private residence

4.4.4 Carolyn Howarth, Senior Planner, Development Planning, Dumfries & Galloway Council

Carolyn’s presentation outlined the planning framework for Shambellie House. D&GC is currently producing a Local Development Plan (LDP), which will replace a number of local plans across the county. The draft version of the LDP was published in January 2013 and is currently open for public consultation. D&GC are hoping to have the LDP approved in Summer 2014. Therefore, any proposals for planning permission will depend upon which plan they are being assessed against; however, Carolyn believes that aspects against which proposals for Shambellie would be measured are unlikely to change significantly.

Major factors that will affect any proposals for Shambellie from a planning perspective are:

• The new LDP has seen a change to the development boundary for New Abbey, and Shambellie now sits outside this boundary

• D&GC would like to see the woodland maintained as much as possible at the site

• As it’s a listed building, any proposals would need to retain those special qualities that contribute to its listed status

• The site is adjacent to a conservation area, which any development must respect

• The site lies within both a national and regional scenic area

• The site is a non-inventory garden area.

4.4.5 Janice Kay, Area Planning Manager, Dumfries & Galloway Council

Janice spoke about the consents that would be required for any proposed scheme at Shambellie House. She relayed a message from Steven Rodgers, Head of Planning and Building Standards, stating the Council’s support for appropriate developments in the area, particularly those that incorporate imaginative uses and designs. Janice suggested the Council would look at any re-use scheme as favourably as they could against its policies. In addition, the Council might allow some flexibility in its policies providing the scheme contributes to economic growth in the area.

Other points Janice raised were:

• Any scheme would be likely to require planning permission

• Any like-for-like repair work would not require listed building consent; however, major alterations (such as an interior lift) would

• A change of use application shouldn’t be an issue

• Pre-application enquiries are advisable

• Any new build would depend on how it would fit with the eventual use and within the landscape

• The Council would potentially need to look at the issues of access to the site depending upon the proposed change of use.

Janice concluded by stating that, from the planning perspective, there were no options for the future of Shambellie House that should be ruled out at this stage.

4.4.6 Eric Brown, Economic Development Officer, Dumfries & Galloway District Council

Eric stressed the importance of the tourism sector to Dumfries & Galloway. In 2012, it was estimated to have a value of £287 million to the area, attracting 2.5 million people and actively employing 7,000. Eric reiterated that he had no strong views as to what the final scheme should be, but that the Council would be looking for a scheme which would contribute to the visitor economy, and be financially viable and sustainable. It was also reiterated that the Council would support a tourism-based venture, due to its key role in bringing jobs and income to the area, and that a good level of time and marketing is put towards promoting tourism related enterprises by D&GC.

Eric gave some figures for tourism in the local area:

• The average length of stay in Dumfries & Galloway is 4.3 nights

• The average size of a visiting party is 2.8 people

• The average spend is £46 per head per stay.

Eric concluded by noting that Dumfries & Galloway has a high proportion of non-serviced visitor accommodation and that larger holiday home/self-catering accommodation is lacking in the area.

4.4.7 Cathy Agnew, Project Director, Peter Pan Moat Brae Trust

Cathy Agnew was invited to speak at the workshop to tell attendees about her experiences as project director of the Peter Pan Moat Brae Trust (PPMBT), which is restoring Moat Brae House in Dumfries and creating a centre for children’s literature. Cathy explained that it is important to not be set upon one idea too soon - it wasn’t until 18 months into the project that the PPMBT settled on the final vision for their project. However, she encouraged the group to consider all possible options for Shambellie House, whilst at the same time thinking about how those ideas would be sustainable.

Other points Cathy raised were:

• It helps to have project patrons/ambassadors, who can provide media coverage and help attract sponsors and supporters

• It is imperative to carefully consider funding requirements when assessing a scheme’s viability

• A solid governance structure is essential for a successful project.

4.4.8 Open discussion

Following the formal presentations, attendees were given the opportunity to contribute any other thoughts they wished to at this stage which they felt would be useful to inform the afternoon’s discussions. Points raised were:

• Lou Greenshields, Nick Stewart and Lea Wilson spoke on behalf of the Shambellie Estate and the Stewart family. They suggested that they would be pleased if the future use of Shambellie House incorporated the wishes of Charles Stewart from when he gifted the property to the public. In addition, they would like any scheme to be sympathetic to the current building and the site, and would wish to see a project which drew economic value to the village. Lou also mentioned that the family would like to see the collection from the House incorporated into the final use in some way.

• George Hering spoke for Historic Scotland and the New Abbey Corn Mill. He said that Sweetheart Abbey is seen to be the main attraction in New Abbey, but that the Corn Mill and National Museum of Costume were seen as part of the offer; people were still asking at the Mill when the museum would be open. George would like to see a formal link between the attractions in New Abbey, and is also keen to find a way to attract more schoolchildren to the area; it was noted that HS have a grant aid project to try and attract children to their sites. He also noted that 62% of visitors to Dumfries & Galloway were return visitors.

• Sheila Cameron spoke as a representative of the Shambellie Walled Garden. Shelia would be interested in linking the Walled Garden to a project at Shambellie House, commenting that this would be fairly easy due to their proximity. Shelia also spoke as a representative of the community, and suggested that the proposed scheme should have strong local links and focus, unlike the costume museum which had a national focus .

• A number of attendees, including Sheila Cameron and Morag McKee from the New Abbey Tea Rooms, commented that there was a lack of parking facilities in the village, and this has worsened since the closure of the museum and its attached car park. The car park near Sweetheart Abbey is the only substantial car park remaining

in the village, and occasionally motorhomes and caravans will use it, restricting space. Should an end use be decided upon for Shambellie that would require a lot of visitors, it was suggested that options for another car park be sought. Lea Wilson commented that the Estate may be able to allocate some land for this purpose.

• Ed Forrest from the Southern Uplands Partnership suggested that New Abbey was well located for nature tourism in relation to the wider area, and that links could be forged with nearby attractions and areas.

• Gordon Mann spoke as a representative of Destination Dumfries & Galloway, and suggested that whilst it is worrying that tourism is generally declining in the area, there are signs that it is also diverging from traditional patterns of ‘older’ visitors, and that younger tourists are visiting the area for weekend breaks and for attractions such as the 7stanes at Glentrool.

• Luke Moloney spoke from the Dumfries Historic Buildings Trust, and noted that there was a need to diversify the holiday accommodation currently available in Dumfries & Galloway.

• Simon Green from the Vivat Trust commented that he could see a role for the Trust in a project at Shambellie House, and envisage a holiday accommodation option for 12 people, with the basement used for community use.

• A large number of attendees commented that there were a large number of cyclists passing through the area.

5.0 Results of the break-out groups

The break-out groups undertook two exercises during the afternoon session:

1. a SWOT analysis - to identify Shambellie House’s strengths, weaknesses, opportunities and threats, which any proposals for reuse would have to address

2. a brainstorm of potential new uses, responding to the results of the SWOT and the presentations given in the morning.

The objective was to build on the identified strengths and maximise opportunities, while managing the weaknesses and threats.

5.1 SWOT analysis results

Strengths

• The building is in a good condition • It’s close location to New Abbey is positive, • There is support from the Council, and any new scheme can build upon the including the planning department strong links between Shambellie House and • The building is of a manageable size the village, including the current attractions • The building is in a good location, including • The local community is supportive the quality of the natural environment, the • Dumfries & Galloway has a strong arts & woodland, and its location within a National heritage background which can be drawn Scenic Area upon • The support of the family, and the oral • Links can be made with the Walled Garden history they bring, can be utilised which sits within the Estate • The Shambellie Estate is supportive • The large numbers of cyclists visiting the • There is scope for appropriate limited local area can be encouraged to use any development on the site future scheme • There are good transport links to both the House (A710) and Dumfries and Galloway

Weaknesses

• The area’s remote location could be an • The issues with access to the site could issue; Dumfries & Galloway is sometimes limit the possible uses seen as the ‘forgotten corner’ of Scotland • There is a lack of car parking in the village • The size of the building could limit the already, and an increase in visitors would possible end uses put pressure on these existing facilities if • There is a lack of hotels in the area, and new car parks were not built this could be an issue should the final • The amount of spend per head for tourists scheme not include accommodation has reduced in recent years due to the • The existing plan of the building could be recession, and this could be an impact if difficult to work with in terms of the final use incorporates a ‘high quality’ alterations for accessibility scheme • The building is ‘only’ Category B listed, and • There is currently no obvious delivery this could have an impact when the project vehicle within the village to take on a looks to secure funding project of this size • There is currently poor physical links to • The population of New Abbey is an ageing New Abbey, with visitors to the House one, and there may be a lack of interest having to walk along a main road to reach amongst residents to join a delivery the village vehicle

Opportunities

• There is the opportunity to improve access, • There is the opportunity to link the new both within the site and to the New Abbey. attraction with the existing attractions in A new footpath could be created between New Abbey and the wider Dumfries & the House and the village Galloway area • The attraction could act as a gateway to the • The quiet location could be appealing to natural heritage in the area, and a scheme visitors wishing to ‘get away’ could incorporate nature based tourism and • The number of repeat visitors to the area is education encouraging • There is the opportunity to build upon the • There is the opportunity to link with the established arts and craft scene that is strong Shambellie Estate, who have expressed in Dumfries & Galloway willingness to be involved with the project • The project could create jobs for local • The project could link with and complement residents the existing businesses in New Abbey • The project could become an attraction to • The project could address the lack of high- the large number of cyclists using the area end holiday accommodation in Dumfries & • There is the chance for the project to Galloway contribute to the local economy • The Vivat Trust/Landmark Trust could • The project can link in with and build upon become involved in a residential scheme the existing tourist infrastructure in the area • The project can create synergies with • The project could look to take up the drive Charles Stewart’s interests in the community to see something happen • The house could be converted back to its with the building original purpose – private accommodation

Threats

• The recession and uncertain economic • A use linked with the arts/crafts scene climate could have a big impact on the comes with a number of threats; the project’s ability to attract funding, as well project could produce unwelcome as the willingness of visitors to spend competition in the area, it could duplicate money at the final attraction existing offers, and the culture is very • An attraction may bring increased traffic vulnerable to changes in the economy to the area, which would have a number • The project would need to ensure it is of implications, including a strain on sustainable existing car parking, more vehicles • There is the threat that no end user can travelling through the village, and a need be found and the building will then be at to assess the access to the site. threat from theft/vandalism/decay • Scottish Government disposal rules may • The attraction could be seen as prevent a community trust from taking competition to established businesses in ownership of the building the area.

5.2 Process for identifying potential uses and users

When asked to identify potential uses and users for the Shambellie House, attendees were encouraged to think outside the box and not be afraid of putting any ideas on the table, from which a longlist of ideas was created. In reporting back, each group was asked to identify three preferred new uses.

The membership of each group was designed to include a mix of skills and experience, to ensure that heritage, commercial and regeneration issues, as well as local/community views and knowledge are taken into account when discussing ideas for new uses.

5.3 Users & uses

5.3.1 Uses

Long term uses • High-end holiday accommodation • Residential courses • Centre for arts/crafts/design/music • Private residential • Weddings • Day courses • Museum • ‘Be a Victorian’ experience • Natural heritage centre • Film/TV post production

Meanwhile uses • Art gallery • Creative studio workspaces • Photography exhibition • Corporate events • Private let • Artists studios • Musicians studios

5.3.2 Users • Local community; either the New Abbey Community Council or a newly established New Abbey Community Trust

• Vivat/Landmark Trust or similar • Dumfries & Galloway Council • University of West of Scotland • Scottish Agricultural College • Southern Uplands Partnership • Dumfries & Galloway College • Shambellie Walled Garden • The National Trust for Scotland

5.4 Preferred uses

Of the uses discussed on the day, the following were singled out as the preferred three uses:

Preferred new Details uses

Mixed use – high This option would comprise a scheme in which the house is split between end holiday ‘plus’ the upper floors and the basement. The upper floors would be used as a holiday let. The basement would then be used for community use, such as artists’ workshops, flexible space for children’s activities and events, or for natural heritage workshops that would incorporate the wider estate, as well as accommodate the wishes of Charles Stewart.

This proposed holiday accommodation use is considered viable and sustainable. At the same time the use of the basement as a community space would fit with the wishes of the community and reinforce local links, as well as appeal to funders. It was envisioned that such a scheme could be developed by a user such as the Vivat Trust.

Residential This option would see the house transformed into a space for a potentially education centre, wide range of themes, with ideas ranging from a cookery school, a field potentially with study centre or a residential centre for arts and crafts. The latter was enabling particularly highlighted as an option, as it would be able to draw on the development already well-established arts and crafts scene in Dumfries.

It was suggested that enabling development could be required as a revenue engine, which would also free up more room within the house for the education aspects of the scheme. This could either consist of sympathetic new build, or conversion of a number of outbuildings on the estate.

Private residential It was noted by each of the break-out groups that Shambellie’s original purpose was as a private residence, and that the minimal intervention that has taken place over the years would mean that returning it to this use would require little change to the building’s fabric. Transferring the property privately would also null any problems caused by government asset transfer rules, and would avoid the need to fundraise for purchase of the property. This could also be a solution if no viable delivery body could be found for the other proposed options.

It was agreed that this option should be sought only if alternative uses were found to not be viable and sustainable.

6.0 Conclusions

This report has set out the significance of Shambellie House and has summarised the presentations given on the day. It has distilled the discussions held in the three break-out groups about the strengths, weaknesses, opportunities and threats, and has listed the potential new uses and users discussed. Finally, it has outlined in detail three of the preferred uses identified on the day.

The conclusion was that the worst thing that could happen would be for Shambellie House to remain empty and for it to deteriorate. There was an agreement that there is a genuine drive from the community and wider stakeholders to find a new use for Shambellie, and that uses that involve a community aspect and are able to contribute to the local economy should be prioritised. There is also a desire from the family for the collection to be looked after and for some of the artefacts and paintings to be incorporated into the new use if possible.

It is recommended that the options appraisal looks into the three preferred uses highlighted in this report. In doing so, the value of the tourist economy within Dumfries & Galloway should be seen as an important factor, as should the arts and crafts community which could play an important role in two of the preferred uses identified. It will be important to keep engaging with the range of key stakeholders that attended the event, as all were willing to continue to be consulted going forward and lend their expertise to the project.

In particular, it will be important to continue to have input from Dumfries & Galloway Council and Historic Scotland, and to consult with the Scottish Government to fully understand their rules on the transfer of public assets. Organisations such as the Vivat Trust should also continue to be consulted in order to assess the viability of the holiday accommodation option proposed, as should members of the New Abbey community, as links with other attractions and businesses could be key in making the project viable.

Overall, it was agreed that Shambellie House remains a major heritage asset with potential to contribute to the New Abbey community and the wider area, bringing both economic and social benefits.

18th October 2013

APPENDICES

APPENDIX A – List of attendees The Prince’s Regeneration Trust

Biljana Savic, Interim Operations Director

Pauline Megson, Projects Adviser

Alex Hatt, Projects Assistant

Simpson & Brown Architects

John Sanders, Partner

Scottish Government

Duncan Mackay, Culture & Heritage

Fiona Kimber, Property

National Museums Scotland

Peter Williamson, Head of Enterprises

Historic Scotland

Barbara Cummins, Director of Heritage Management

George Hering, Monument Manager

Louisa Humm, Senior Inspector of Historic Buildings

Dumfries & Galloway Council

David Lockwood, Service Manager, Arts, Museums & Events

Rebecca Coggins, Principal Officer, Arts, Museums & Events

Siobhan Ratchford, Museums Curator, Arts, Museums & Events

Eric Brown, Economic Development Officer

Carolyn Howarth, Senior Planner, Development Planning

Janice Kay, Area Planning Manager

Kayleigh Scott, Museums Intern

New Abbey Community Council

Peter Barrett, Member

Chamber of Commerce / Destination Dumfries & Galloway

Gordon Mann OBE, Chief Executive / Chairman

Stewart Family / Shambellie Estate

Nick Stewart, Stewart Family

Lou Greenshields, Trustee, Shambellie Estate

Lea Wilson, Trustee, Shambellie Estate

G M Thomson & Co

Charles Grieve, Factor, Shambellie Estate

Shambellie Walled Garden & Nursery

Sheila Cameron

New Abbey Cottage Tearoom

Morag McKee, Owner

Peter Pan Moat Brae Trust

Cathy Agnew, Project Director

Abbey Ward Councillors

Cllr Rob Davidson, Scottish National Party

Cllr Ian Blake, Conservative & Unionist

Scottish Natural Heritage

Trevor Godden, Operations Officer

Southern Uplands Partnership

Ed Forrest, Project Officer

The Vivat Trust / RCAHMS

Simon Green, Trustee

AHSS Dumfries / Dumfries Historic Buildings Trust

Luke Moloney, Chair

APPENDIX B – Stakeholder workshop programme SHAMBELLIE HOUSE, NEW ABBEY Stakeholders Workshop

Thursday 3rd October, 10:00am to 15:45pm New Abbey Village Hall, New Abbey, Dumfries, DG2 8BY

9:30 Shambellie House open for viewing for one hour

10:00 Registration and coffee/tea

10:30 Purpose of the workshop The Prince’s Regeneration Trust

Setting the scene

10:40 Background The Prince’s Regeneration Trust

10:55 The National Museum of Costume National Museums Scotland

11:05 Community Perspective New Abbey Community Council

11:15 Architecture & Building Condition Simpson & Brown Architects

11:35 Planning & Development Context Dumfries & Galloway Council

11:45 Tourism & Economic Context Dumfries & Galloway Council

12:00 Case Study: Moat Brae House Peter Pan Moat Brae Trust

12:15 General Q & A

12:45 Sandwich lunch provided

Workshop

13:15 SWOT Analysis Groups

14:00 Summing up Group Leaders

14:30 Brainstorm – potential uses and users Groups

15:00 Summing up Group Leaders

15:20 Quick coffee/tea break

15:25 Next steps and round up All/Biljana Savic

15:45 Close

Appendix G - Pre-application Enquiry Response Your Ref: Planning and Environment Services Development Management Our Ref: 13/F/3/0225 Kirkbank English Street 16 December 2013 Dumfries DG1 2HS Pauline Megson Any enquiries please contact The Prince's Regeneration Trust 14 Buckingham Palace Road Andrew Robinson London Telephone – 01387 260825 SW1W 0QP Mobile – 07825 974894 E-mail – [email protected] Website – www.dumgal.gov.uk/planning

Dear Ms Megson

PRE-APPLICATION ENQUIRY - INTERNAL ALTERATIONS AND CHANGE OF USE OF MUSEUM, AND DEVELOPMENT OF HOUSING IN FORMER CAR PARK AT SHAMBELLIE HOUSE, NEW ABBEY, DUMFRIES

I refer to your pre-application enquiry for the above development, which was received on 19 November 2013. Your enquiry relates to Shambellie House with options for changing the use of the property as well as erecting a new development, primarily for housing, in the former car park. The proposal is to establish an appropriate and sustainable new use for Shambellie House which is redundant and the pre-application request is seeking feedback on the proposals and an indication of any potential issues in terms of planning or listed building consent.

When assessing development proposals, planning legislation requires the planning authority to make decisions in accordance with policies in the adopted development plan for an area. There are two adopted development plans that would be relevant to consider for this proposal, being the Dumfries and Galloway Structure Plan and the Nithsdale Local Plan. Both of these plans contain planning policies that are used to assess the suitability of development proposals and the most relevant policies to consider for the proposals (although not necessarily restricted to these) would primarily be Dumfries and Galloway Structure Plan Policies D6, D23, E1, E9, and E11 and Nithsdale Local Plan General Policies 1, 2, 3, 9, 17, 33, 41, 51, 53a, 76, and 80.

It is possible to view the full wording of these policies online by using the following web links from the Council's web site: http://www.dumgal.gov.uk/CHttpHandler.ashx?id=344&p=0 - Structure Plan http://www.dumgal.gov.uk/CHttpHandler.ashx?id=428&p=0 - Nithsdale Local Plan -2-

Following approval by the Full Council in September 2013, the Council’s Proposed Local Development Plan (LDP) is now a material consideration of some considerable weight although does not override the adopted development plan. The relevant LDP policies are considered to be OP1, ED10, H4, HE1, HE6, NE1, NE7, and CF1. The proposed LDP can be accessed via the following weblink: http://www.dumgal.gov.uk/index.aspx?articleid=11907

In order to respond to your enquiry, the proposals for the change of use of the house and the car park development will be taken in turn.

Change of Use Submitted information proposes to change the use of the property from a museum to either: · a dwelling to be let as holiday accommodation also comprising a community use (scheme 1a); · two residential properties to be let as holiday accommodation (scheme 1b); · a residential centre comprising 11 bedrooms for a cook/fabric school (scheme 2a); · a residential outdoor centre comprising 8 bedrooms (scheme 2b); · a residential craft centre comprising 9 bedrooms (scheme 2c); · a single dwellinghouse for private use (scheme 3a); · a subdivision forming two dwellinghouses for private use (scheme 3b);

Essentially, scheme 1 would involve changing the use of the property to a dwellinghouse, falling under class 9 of the Town and Country Planning (Use Classes) (Scotland) Order 1997, to be let as holiday accommodation with a community use also attached in scheme 1a. Scheme 3 relates solely to changing the use of the property to either a single dwellinghouse or subdivision involving two separate dwellinghouses for private use. Again, these would fall within a class 9 use.

Structure Plan Policy D6 has a presumption in favour of brownfield sites and reuse of buildings within towns and villages. Likewise, Structure Plan Policy E9 encourages the re-use and renovation of vacant listed buildings. The change of use of the property to a dwellinghouse for either private or tourist use is unlikely to conflict with development plan policy and the principle of this is likely to be supported by officers. The use of the property to be let as tourist accommodation would also comply with Structure Plan Policy D23, which supports the development of visitor attractions as part of tourist development. It is unlikely that a community use would raise any strong reservations given that the site was previously used as a museum, which falls within class 10 of the use classes order and a community use is likely to be considered to fall within the same use class.

With regard to scheme 2, similar policies as stated above would apply with regard to supporting the re-use of the building although the change of use of the building to a residential.../ -3- residential institution would primarily need to satisfy the requirements of Nithsdale Local Plan General Policy 80 (GP80), which permits the development of new residential institutions providing certain criteria are met. Parking and access arrangements in particular would require further scrutiny as scheme 2 would involve a greater intensity of use of the building. It would have to be demonstrated that the site has sufficient on-site parking to serve the development and the access to the site is suitable to ensure that criterion c) of this policy is complied with. It is likely that the current access arrangements to the site would require upgrading for a more intense use. In order to comply with criterion b) of GP80, it would be beneficial to assess whether other similar uses exist within the area.

All proposals that involve internal alterations to the building to bring about a change of use, such as removing any walls or erecting new partitions, would have to ensure that no architectural features inside the building are adversely affected. This would include ensuring that any decorative features, such as cornicing or other detailing, are not affected.

Please note that it is not possible to apply for planning permission in principle for a change of use and a full planning application would be required.

Notwithstanding the factors to consider above, a material planning consideration is assessing the economic benefit that these proposals would bring resulting in the re-use of this important listed building and these factors would be a material consideration in the assessment of these proposals that would be given significant weight. Generally, the Council would look upon proposals for the re-use of this property positively, especially where the economic benefits that support the building's retention are evident. Once a use has been decided, the Council would be willing to assist and advise further.

Car Park Development In the current adopted local plan, the proposed site lies within the settlement boundary of New Abbey just outwith the New Abbey Conservation Area. The proposed site is a former public car park associated with Shambellie and two options to redevelop this piece of land involve either erecting five dwellinghouses to let or erecting a barn for an artists studio with the erection of three dwellinghouses to let.

To establish whether the principle of either of these development options are acceptable, the relevant development plan policies are considered to be Structure Plan Policy D6 and Nithsdale Local Plan General Policy 17 (GP17) which also refers to GP9. GP17 will only consider residential development on sites not allocated for such a use favourably if it is not of a scale to adversely affect the overall development strategy of the plan, it would not prejudice or restrict the development of an allocated or long term site, and conforms with the criteria in GP9. Other factors such as the design and visual appearance of the development and its potential effect on the landscape will ascertain whether the scale would affect the overall development.../ -4- development strategy of the plan. However, the development of this site is unlikely to prejudice or restrict the development of an allocated or long term site.

Criteria in GP9 requires development not to conflict with adjoining or adjacent land uses, conform with or enhance the inherent character and layout of the locality, not constrain the potential to develop any adjacent site allocated for development purposes, and not result in overdevelopment of the site. The site is located on the boundary of the New Abbey Conservation Area and is situated within a National Scenic Area, a Non-Inventory Designed Landscape and an Ancient Woodland. The site is also situated in a prominent location on the entrance to New abbey from the north.

Given the location of the site in a prominent position and set within an attractive woodland setting, the key factor to determine the suitability of this site as a built housing development will very much depend on the design quality of the build and its relationship to its setting and wider surroundings. In order for either development to comply with development plan policy, the scale, design and overall appearance of the development would have to be of a very high standard. It is noted from the submitted information that a traditional design is proposed in the form of a steading type layout as well as the buildings being traditional in style. It is considered that this would be a more favourable approach in order for the development to appear in keeping with its surroundings, relate positively to the character and appearance of New Abbey and Conservation Area as well as the National Scenic Area.

With regard to the proposed artists studio, there is no relevant policy in order to establish whether the principle would be acceptable in this location and therefore only general policies would apply, which are considered to Nithsdale Local Plan GPs 1, 2, 7, and 41. As with the houses, the scale, design and overall appearance of this building would have to be of a high quality design so that it does not detract from the character and appearance of the locality and no land use conflict would occur to adjoining properties and land uses.

It should also be taken into account that the existing access is likely to be required to be upgraded to accommodate these options although the exact requirements would have to be discussed further with the Council's roads service once an exact approach for the development has been decided. Given the sensitive appearance of this location, the appearance of any upgraded access would have to be carefully considered bearing in mind the rural nature of the site. Further discussions between yourselves, planning officers and roads officers on any proposed access arrangements are recommended in order to establish appropriate requirements.

In the proposed Local Development Plan, which is now a material consideration of some considerable weight although does not override policies in the adopted development plan at this stage, the site is located outwith the settlement boundary of New.../ -5-

New Abbey and therefore a different policy criteria would apply to assessing the development. Policy H4 would be the relevant policy to consider, which assesses housing development immediately outside settlement boundaries. In order for this site to be considered for housing, a shortfall has to be identified by the Council through the housing land audit with regard to the provision of an effective 5 year housing land supply. Should a shortfall be identified, proposals for housing must represent a logical extension to the built up area, be of an appropriate scale, not prejudice the character or natural built up edge of the settlement, and not cause any significant adverse impact on landscape or natural and cultural heritage. As explained above, to comply with this policy's requirements would require the scale, design and overall appearance of the development to be of a very high standard.

It should be noted that were the houses to be for tourist use only, there maybe a degree more flexibility regarding the principle of the dwellings in this location under policy ED10, which supports the provision of tourist accommodation with preference given to developments that are physically associated with existing settlements. In all cases there will be a presumption against tourist accommodation being used for permanent residence. Notwithstanding this policy, the development would still have to be of a high quality design to satisfy other policy requirements highlighted above.

Should you wish to apply for a full planning permission, please note that it will be a statutory requirement to submit a design statement to accompany the application as the site is situated in a National Scenic Area. Although it is not a statutory requirement to submit this for a planning permission in principle application, given that the appearance and design of the development will be an important consideration in its suitability, it is advised that similar information is submitted.

You will appreciate that this letter constitutes advice only and is made without prejudice to any decision which the Council as planning authority may choose to make in respect of any future planning application. Furthermore, it should not be assumed that every issue which might impact on any such application has been addressed in this letter. It should also be noted that other issues may come to light as a result of consultation with other relevant bodies in relation to any future planning application.

Should you wish to discuss the content of this letter further, please do not hesitate to contact Andrew Robinson at the above contact details.

Yours sincerely

Janice Kay

Janice Kay Area Planning Manager New Abbey Cornmill

2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Visitor Mix 2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Visitors 4,659 4,124 -11% 4,640 13% -0.4% Walk Up 1021 954 -7% 1,224 28% 20% Admissions £4,691 £4,515 -4% £6,442 43% 37% Friends Entry 1569 1,246 -21% 1,545 24% -2% Retail £4,295 £4,400 2% £4,376 -1% 2% SEP Entry 1237 1,160 -6% 1,177 1% -5% Total Income £8,986 £8,915 -1% £10,818 21% 20% Free 832 764 -8% 694 -9% -17% Admissions SPV £1.01 £1.09 9% £1.39 27% 38% Total Visitors 4,659 4,124 -11% 4,640 13% 0% Retail SPV £0.92 £1.07 16% £0.94 -12% 2% Overall SPV £1.93 £2.16 12% £2.33 8% 21% Walk Up Friends Entry SEP Entry Free Visitor Mix 2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Adult Admissions 495 417 -16% 577 38% 17% Concession Admissions 385 445 16% 477 7% 24% 100% Child Admissions 141 92 -35% 170 85% 21% Friends Entry 1569 1,246 -21% 1,545 24% -2% 80% SEP Entry 1237 1,160 -6% 1,177 1% -5% Free 832 764 -8% 694 -9% -17% 60% Total Visitors 4,659 4,124 -11% 4,640 13% 0% 40%

20%

0% 2010/11 2011/12 2012/13 2010/11 2011/12 2012/13 Visitor Origin Visitors % of Total Visitors % of Total Vol YOY % YOY Visitors % of Total Polled Vol YOY % YOY Vol +/- % +/- Polled Polled 2010/11 2010/11

AUSTRALIA/NEW ZEALAND 135 3% 114 3% -16% 0% 103 2% -10% -0.7% -24% -1% CANADA 64 2% 62 2% -3% 0% 69 2% 11% 0% 8% 0% CHINA 0 0% 0 0% 0% 11 0% 0% 0% ENGLAND 1,399 36% 1,423 38% 2% 2% 1558 35% 9% -3% 11% -1% FRANCE 99 3% 90 2% -9% -0.1% 103 2% 14% 0% 4% 0% GERMANY 327 8% 303 8% -7% 0% 319 7% 5% -1% -2% -1% INDIA 1 0% 7 0% 600% 0% 0 0% -100% 0% -100% 0% ITALY 78 2% 74 2% -5% 0% 90 2% 22% 0% 15% 0% REST OF EUROPE 231 6% 184 5% -20% -1% 221 5% 20% 0% -4% -1% REST OF THE WORLD 78 2% 45 1% -42% -1% 43 1% -4% 0% -45% -1% REST OF UK 54 1% 57 2% 6% 0.1% 60 1% 5% -0.2% 11% 0% RUSSIA 5 0% 2 0% -60% 0% 1 0% -50% 0% -80% 0% Scotland 1,319 34% 1,262 33% -4% -0.1% 1756 39% 39% 5% 33% 5% SPAIN 36 1% 40 1% 11% 0% 60 1% 50% 0% 67% 0% USA 107 3% 108 3% 1% 0% 113 3% 5% 0% 6% 0% Total Polled 3,933 100% 3,771 100% -4% 4507 100% 20% 15% Actual Visitors 4,659 4,124 -11% 4,640 13% 0% % Polled 84% 91% 8% 97% 6% 15%

Visitor Origin 2010/11 2011/12 2012/13 UK 70% 73% 75% 100% Europe 20% 18% 18% 80% Intercontinental 10% 9% 7% 60% 40% 20% 0% 2010/11 2011/12 2012/13

UK Europe Interconnental Sweetheart Abbey

2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Visitors 9,823 7,621 -22% 5,313 -30% -46% Admissions £17,515 £13,600 -22% £9,001 -34% -49% Retail £3,976 £4,250 7% £3,644 -14% -8% Total Income £21,491 £17,850 -17% £12,646 -29% -41% Admissions SPV £1.78 £1.78 0% £1.69 -5% -5% Retail SPV £0.40 £0.56 38% £0.69 23% 69% Overall SPV £2.19 £2.34 7% £2.38 2% 9%

Visitor Mix 2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Visitor Mix 2010/11 2011/12 YOY 2012/13 YOY +/- 2010/11 Adult Admissions 3274 1726 -47% 1110 -36% -66% Walk Up 5285 3052 -42% 1928 -37% -64% Concession Admissions 1447 1038 -28% 677 -35% -53% Members 1817 1720 -5% 1460 -15% -20% Child Admissions 564 288 -49% 141 -51% -75% SEP 1504 1740 16% 1156 -34% -23% Friends Entry 1817 1720 -5% 1460 -15% -20% Free 1181 1094 -7% 738 -33% -38% SEP Entry 1504 1740 16% 1156 -34% -23% VIP Entry 36 15 -58% 31 107% -14% Free 1181 1094 -7% 738 -33% -38% Total 9823 7621 -22% 5313 -30% -46% VIP Entry 36 15 -58% 31 107% -14% Total 9823 7621 -22% 5313 -30% -46% Walk Up Members SEP Free VIP Entry

2010/11 2011/12 2012/13 Visitor Origin Visitors % of Total Visitors % of Total Visitors % of Total Vol YOY % YOY Polled Polled Polled 100%

AUSTRALIA/NEW ZEALAND 78 4% 175 3% 125 2% -29% -0.1% 80% CANADA 35 2% 145 2% 105 2% -28% 0% CHINA 0 0% 0 0% 2 0% 0% 60% ENGLAND 845 47% 2,768 40% 1967 38% -29% -2% FRANCE 16 1% 251 4% 188 4% -25% 0% 40% GERMANY 73 4% 524 8% 410 8% -22% 0% 20% INDIA 0 0% 0 0% 2 0% 0% ITALY 7 0% 183 3% 93 2% -49% -1% 0% REST OF EUROPE 35 2% 398 6% 202 4% -49% -2% 2010/11 2011/12 2012/13 REST OF THE WORLD 18 1% 90 1% 66 1% -27% 0% REST OF UK 15 1% 110 2% 67 1% -39% 0% RUSSIA 2 0% 9 0% 5 0% -44% 0% Scotland 595 33% 1,822 26% 1603 31% -12% 5% SPAIN 5 0% 89 1% 44 1% -51% 0% USA 68 4% 328 5% 282 5% -14% 1% Total Polled 1,792 100% 6,892 100% 5161 100% -25% Actual Visitors 9,823 7,621 5,313 -30% % Polled 18% 90% 97% 7%

Visitor Origin 2010/11 2011/12 2012/13 UK 81% 68% 71% 100% Europe 8% 21% 18% Intercontinental 11% 11% 11% 50%

0% 2011/12 2012/13

UK Europe Interconnental Appendix I - Valuation for Shambellie House

Report and Valuation Prepared for

Shambellie House, New Abbey, Dumfries DG2 8HQ December 2013

Page

Executive Summary Overleaf

CONTENTS

1.0 INSTRUCTIONS AND TERMS OF REFERENCE...... 1 2.0 LOCATION AND SITUATION ...... 3 3.0 DESCRIPTION ...... 3 4.0 TENURE AND OCCUPATION ...... 5 5.0 ENVIRONMENTAL CONSIDERATIONS ...... 6 6.0 PLANNING POLICY AND DEVELOPMENT POTENTIAL ...... 6 7.0 COUNCIL TAX & BUSINESS RATES ...... 8 8.0 HIGHWAYS AND ACCESS ...... 8 9.0 RESIDENTIAL PROPERTY MARKET OVERVIEW ...... 8 10.0 POTENTIAL OTHER USES ...... 12 11.0 VALUATION METHODOLOGY ...... 13 12.0 ANALYSIS OF COMPARABLE EVIDENCE ...... 13 13.0 PRINCIPAL VALUATION CONSIDERATIONS ...... 14 14.0 VALUATION SUMMARY ...... 15 15.0 STANDARD CONDITIONS AND GENERAL ASSUMPTIONS ...... 15 16.0 VERIFICATION ...... 17 17.0 CONFIDENTIALITY ...... 17

APPENDICE

1. Copies of Letter of Instruction and Terms of Engagement 2. Location Plan 3. Site Plan 4. Floor Plans 5. Photographic Schedule

EXECUTIVE SUMMARY

Shambellie House, New Abbey, Dumfries DG2 8HQ

THIS EXECUTIVE SUMMARY MUST BE READ IN CONJUNCTION WITH THE MAIN BODY OF THE REPORT WHICH SUMMARISES THE TERMS, CONDITIONS AND ASSUMPTIONS UPON WHICH OUR VALUATION HAS BEEN UNDERTAKEN AND TAKES PRECEDENCE

Background and Savills have been instructed by the Scottish Government to provide a valuation of the Proposal above property for a strategic review of the potential future uses of the Property.

Location and The Property is located within Dumfries and Galloway, approximately 0.5 miles from Situation New Abbey and approximately 8 miles south of Dumfries. The surrounding land uses are predominantly agriculture and forestry.

Description and The Property comprises Shambellie House, Shambellie Gate Lodge and Accommodation approximately 5.7 acres of garden grounds and woodland.

Building Condition The main house is in fair condition and appears to benefit from ongoing maintenance. The gate lodge is in very poor condition and is uninhabitable.

Town Planning Further research should be carried out to review the potential for a house site within the old car parking area. No value has been attached to this element currently.

Tenure The valuation is provided on the basis of vacant possession.

Principal Please refer to section 14. Valuation Considerations

17 December 2013 1-4-224 Valuation Report - Final

Scottish Government SPCD: Property Division Sian Robinson MRICS Area 3G-N E: [email protected] Victoria Quay DL: +44 (0) 141 222 4107 Edinburgh F: +44 (0) 141 248 7343 EH6 6QQ 163 West George Street Glasgow G2 2JJ T: +44 (0) 141 248 7342 For the attention of Fiona Kimber savills.com

Dear Sirs

THE CLIENT: Scottish Government THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

1.0 INSTRUCTIONS AND TERMS OF REFERENCE

1.1 Instructions

In accordance with the instructions contained in your letter to us dated 25 November 2013, we have made all relevant enquiries in order to provide you with our opinions as to:

The Market Value of the heritable interest in the Property, as described in this report, with the benefit of vacant possession.

The Projected Market Value if the Property were converted to a residential property.

Copies of your instruction letter and our confirmation of instruction letter and terms of engagement are reproduced at Appendix 1.

1.2 Date of Valuation

Our opinions of value are as at the date of this report.

The importance of the date of valuation must be stressed as property values can change over a relatively short period.

1.3 Extent of Due Diligence Enquiries and Information Sources

The extent of the due diligence enquiries we have undertaken and the sources of the information we have relied upon for the purpose of our valuation are stated in the relevant sections of our report below.

Our valuation has been carried out in the absence of the following definitive information:

• Report on title

Offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.

Savills (UK) Limited. Chartered Surveyors. Regulated by RICS. A subsidiary of Savills plc. Savills (UK) Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activity. Registered in England No.2605138. Registered office: 20 Grosvenor Hill, London W1K 3HQ

a • Measured floor plans of Shambellie House

Where we have been provided with certain information we have summarised the relevant details in our report. We do not accept responsibility for any errors or omissions that may exist in such information, nor for any consequences that may flow from such errors or omissions.

1.4 Purpose of Valuation

You have instructed us that our valuation is required for a strategic review of the potential future uses of the Property.

1.5 Royal Institution of Chartered Surveyors’ (“RICS”) Compliance

This report has been prepared in accordance with the RICS Valuation – Professional Standards – (“The Red Book”) published in March 2012 (incorporating the International Valuation Standards), in particular in accordance with the requirements of UK Valuation Standard 6 entitled Valuation reports.

1.6 Conflicts of Interest

We are not aware of any conflict of interest that prevents us from providing you with an independent valuation of the Property.

We have accordingly valued The Property as External Valuers.

1.7 Standard Conditions and General Assumptions

Our valuations have been carried out on the basis of the Standard Conditions and General Assumptions, which are set out later in this report.

1.8 Knowledge and Skills of the Valuer

The valuation and due diligence has been conducted by Sian Robinson MRICS, an Associate of Savills (UK) Limited and Hugo Struthers MRICS a Director of Savills (UK) Limited. The valuation has also been reviewed by Peter Gillespie a Director of Savills (UK) Limited, within the residential sales department.

All three are experienced in the valuation of this type of property in this location and have the necessary knowledge, skills and understanding to carry out a valuation of this nature competently.

1.9 Date and Extent of Inspection

The Property was inspected by Sian Robinson MRICS and Peter Gillespie on 04 December 2013. We were able to inspect the whole of the Property, both externally and internally, but limited to those areas that were easily accessible or visible.

The weather on the date of our inspection was dry and sunny.

1.10 Basis of Valuation

In accordance with your instructions, we have provided our opinion of the Market Value of The Property.

In doing so, we have adopted the RICS’ standard definition as follows:

Market Value (MV)

THE CLIENT: Scottish Government Page 2 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Projected Market Value (PMV)

The estimated amount for which an asset is expected to exchange at a date, after the valuation date and specified by the valuer, between a willing buyer and a willing seller, in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

2.0 LOCATION AND SITUATION

Shambellie House is located 0.5 miles north of New Abbey, within the district of Dumfries and Galloway in the southwest of Scotland. The largest town in the county, Dumfries, is located 8 miles to the north of the Property.

Everyday conveniences such as primary school and post office can be found within New Abbey, however a larger range of retailers, education and employment opportunities and entertainment can be found within Dumfries along with the railway station providing links to the north and south. We attach at Appendix 2 a location plan.

The Property is within a predominantly rural area and the surrounding land uses are agriculture and forestry.

A site plan of The Property, with the boundaries outlined in red, for identification purposes, is attached at Appendix 3.

3.0 DESCRIPTION

3.1 Overview

The Property comprises Shambellie House, approximately 5.7 acres of garden grounds and woodland, the driveway providing access to the Property and Shambellie Gate Lodge.

3.2 Main House Construction & Accommodation

The main house is a Scottish Baronial mansion house constructed with solid stone walls under a pitched slate roof. According to Historic Scotland the Property dates back to 1856 and is grade B listed. The property benefits from many original features such as working window shutters, original fireplaces, cornicing and timber framed single glazed sash and case windows.

The main house has most recently been used as a museum and therefore the accommodation within is currently non-standard for a residential dwelling but can be summarised as follows:

Basement Floor

Kitchenette & Tea Room Toilets Boiler Room Kitchen Various Stores

Principal Floor THE CLIENT: Scottish Government Page 3 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

Shop Office Morning Room Dining Room Drawing Room

First Floor

Storage Room Toilet Bedroom Dressing Room Bedroom Dressing Room Nursery Bedroom Bathroom

Second Floor

Attic Rooms

The existing floor plan is included within Appendix 4. The Property is currently lacking a kitchen and bathrooms but proposed refurbishment plans have been prepared addressing this issue which are also included within Appendix 4.

3.3 Shambellie Lodge Construction & Accommodation

The Lodge is a Scottish Baronial gate lodge constructed with solid stone walls under a pitched slate roof. According to Historic Scotland the Property dates back to 1863 and is grade B listed, this listing includes the gate piers.

The accommodation within the lodge is over one floor and is set out below. This information has been obtained from our onsite inspection:-

Entrance Hall (1.33m x 1.75m) Lounge (3.53m x 6.32m) Kitchen (3.82m x 3.09m) Inner Hallway (1.29m x 3.11m) + (2.51m x 1.81m) + (1.74m x 0.94m) Bathroom (3.38m x 1.82m) Bedroom 1 (4.59m x 2.93m) Bedroom 2 (6.05m x 3.48m)

From the above dimensions, we have estimated that the gross internal area of the gate lodge to be 87 m².

3.4 Services

We have been advised that mains water, electricity and telecommunications are all available to the Property. We assume drainage is to individual septic tanks for the main house and lodge. From our inspection we observed the main house has oil fired central heating, the Lodge would appear to be without heating currently. No tests have been undertaken on any of the services.

3.5 Gardens and Grounds THE CLIENT: Scottish Government Page 4 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

The Property benefits from a total of approximately 5.7 acres of ground surrounding the main house and lodge, predominantly mixed broadleaf and conifer woodland although both houses benefit from garden ground laid to lawn. To the south of the Property is an area that was utilised for car parking when the main house was used as a museum.

3.6 Condition

We are unable to comment on the structural condition of the Property since this is beyond the scope of our instructions, nor have we commissioned building surveys. Our comments in relation to condition are relative to decorative condition of the Property and an overall impression gained from our visual inspection only.

Apart from any matters specifically referred to in this report, we have assumed that the Property is free from hidden defects, structural faults, rot, infestation or other defects. The report is prepared on this assumption.

The main house has until earlier this year been used as a museum with tearoom and shop and is generally in fair condition. It is ingood decorative order with evidence of ongoing maintenance throughout. There appeared to be very little evidence of damp with exception of some isolated patches on the ground floor and in the attic area however and we assume this can be remedied without undue expense. It was noted during our inspection that there was an infestation of flies within the nursery and adjacent bedroom on the first floor, this does not impact on our value but remediation should be considered in order to prevent spread of infestation.

Evidence of recent works included replacement floorboards in the attic space, replacement skylights and evidence of a damp proof course in some areas of the ground floor.

The lodge is in very poor condition with evidence of significant water ingress from the roof space and from what would appear to be burst water pipes. The extension to the cottage, we understand undertaken in 1991, is of poor build quality with evidence of blocked gutters causing damp problems internally. The lodge is currently uninhabitable and significant expenditure is required to remediate this Property which is reflected in the valuation.

Photographs of the exterior and interior of the Property taken on the date of our inspection are attached at Appendix 5.

4.0 TENURE AND OCCUPATION

We have valued the heritable interest in the Property as outlined in red on the Site Plan at Appendix 3.

The Property is currently vacant and therefore our valuation is provided on the basis of vacant possession.

We have not been provided with a copy of a Report on Title and have not seen a copy of the Title Deed. We have assumed that full rights of access are enjoyed, and that no third parties enjoy any rights over the Property.

Your solicitors should confirm that there are no onerous restrictions or obligations that bind the Property as part of their due diligence process. It is assumed for valuation purposes that the Property is not subject to any onerous or unusual covenants which are likely to affect the valuations herein provided.

THE CLIENT: Scottish Government Page 5 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a We would strongly advise that your legal advisors confirm our understanding to be correct and ensure that there are no further elements, restrictions or charges contained which are likely to have a detrimental effect upon the valuations as herein reported.

Public Rights of Way

The Property is not crossed by any Public Rights of Way although as with all land in Scotland it is affected by the Land Reform Act and the reasonable right to roam with the guidance of the Access Code.

5.0 ENVIRONMENTAL CONSIDERATIONS

5.1 Informal Enquiries

As instructed, we have not carried out a soil test or an environmental audit and our enquiries have been limited to our visual inspection and an internet based search.

Following informal enquiries, we understand that the Property was used as a museum between 1982 and 2013 and previously used for residential purposes from construction until approximately 1976. On the basis of these informal enquiries, it would appear unlikely that land contamination exists. This comment is made without liability.

5.2 Assumption

As our informal enquiries have suggested that land contamination is unlikely, or insignificant, we have valued the Property on the basis that it has not suffered any land contamination in the past, nor is it likely to become so contaminated in the foreseeable future. However, should it subsequently be established that contamination exists at The Property, or on any neighbouring land, or that the Property has been, or is being put to a contaminative use, then we may wish to review our valuation advice.

We have assumed there to be no adverse ground or soil conditions and that the load bearing qualities of the site are sufficient to support the building constructed thereon.

5.3 Flooding

We have made enquiries with regard to potential flooding at the Scottish Environment Protection Agency website, www.sepa.org.uk and note that there is no risk of flooding at the Property.

6.0 PLANNING POLICY AND DEVELOPMENT POTENTIAL

6.1 Local Plan

We have inspected the website of the Local Planning Authority, Dumfries and Galloway Council, which states that the statutory plan covering planning policy and development control for the area is the Nithsdale Local Plan, which was adopted in September 2006. In accordance with recent changes to planning legislation, Dumfries & Galloway Council's invitation for sites to include in the Dumfries & Galloway Local Development Plan ended on 4 June 2010. The Main Issues Report was published for consultation from 18 March to 13 May 2011. A further consultation period commenced on 12 December 2011 and ended on 9 March 2012. The Proposed Plan was published in January 2013 and there was a consultation period of 6 weeks. The Supplementary Guidance documents were consulted over the same period as representations to the Proposed LDP. Adoption is anticipated in Autumn/Winter 2014.

THE CLIENT: Scottish Government Page 6 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a The Property is identified within the Adopted Local Plan as being within the New Abbey settlement boundary but out with the New Abbey conservation area.

As stated earlier both the main house and gate lodge and piers are listed however the Property is out with the New Abbey Conservation Area.

We are not aware of any planning enforcement notices against The Property.

6.2 Planning Consents

We have inspected the website of the Local Planning Authority to ascertain the planning history of the Property. Details of relevant planning decisions are:

Application Decision Description Decision Number Date 05/P/3/0654 06/01/2006 Formation of fire escape on lower Granted ground floor Conditionally 05/P/3/0655 06/01/2006 Formation of fire escape on lower Granted ground floor Conditionally 05/P/3/0253 15/08/2005 Demolition of part of wall to form Granted entrance to allow vehicular works Conditionally access 04/P/3/0137 18/10/2004 Formation of disables access ramp with Granted handrails (amendment to detailed Conditionally approved under 03/P/30662 03/P/3/0663 26/01/2004 External alterations to museum (to Granted provide disabled ramps) and alterations Conditionally to car parking area and path resurfacing works 03/P/3/0662 26/01/2004 Internal and external alterations to Granted museum (to provide disabled ramps, Conditionally toilets and stair lift) 01/P/30160 17/05/2001 Siting of oil tank Granted Conditionally 91/P/30026 07/05/2001 Planning and listed building consent for Granted alterations repairs and extension to Conditionally existing gate lodge

All of the above planning consents are granted subject to conditions however we have not had sight of any of these conditions but would assume they are standard with no material impact on the Property.

We are not aware of any further outstanding or pending planning applications on the subject site or any in the immediate vicinity, which are likely to have an adverse affect on the Property.

6.3 Development Potential

Our review of the local plan has highlighted that the majority of Shambellie House is within the New Abbey settlement boundary and all out with the conservation area therefore we would highlight the potential for creation of a house site within the area utilised for car parking for the museum. We have not attached value to this element due to the lack of planning consent but would recommend further investigation.

THE CLIENT: Scottish Government Page 7 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a 7.0 COUNCIL TAX & BUSINESS RATES

The Council Tax banding for the residential element of the Property and the charge levied by Dumfries and Galloway Council for 2013/14 is set out below:

Property Council Tax Band Charge Gate Lodge D £1236.20 The most recent use of the main house was as a museum, tea room and shop and therefore business rates have been paid:

Property Description Rateable Value Shambellie House Museum £9,950

8.0 HIGHWAYS AND ACCESS

We have made informal enquiries of Dumfries and Galloway Council Highways Department and understand that the A710 is an adopted highway and maintained at public expense. We are informed that the Highways Authority is not aware of any proposals or schemes likely to adversely affect The Property.

In reporting our opinions, we have assumed that there are no third party interests between the boundary of The Property and the adopted highways, and accordingly The Property enjoys unfettered vehicular and pedestrian access.

9.0 RESIDENTIAL PROPERTY MARKET OVERVIEW

9.1 National Residential Market Comment

From a statistical and analytical point of view, the residential market across Scotland has turned. The market as a whole is being boosted by increasing consumer confidence and improved mortgage lending. There is no doubt that the Scottish market faces some significant challenges, such as the Independence Referendum and Stamp Duty changes. Furthermore, different parts of Scotland are recovering at different speeds. However, we believe that the foundations have been laid for a sustained period of housing market growth, boosted by government initiatives and an improving economy over the next few years. House purchase activity across Scotland has been robust this year, with a 10% increase in transactions during the last four quarters, led by a 11% increase in mortgage lending between October 2012 and September 2013. The Funding for Lending scheme (FLS) has made a positive contribution to mortgage availability across the UK. We expect healthy recovery in transactions as a whole during 2013.

THE CLIENT: Scottish Government Page 8 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

House purchase lending and residential transactions in Scotland per quarter

Residential transactions in Scotland Number of loans for house purchasing in Scotland 45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 2007Q3 2008Q3 2009Q3 2010Q3 2011Q3 2012Q3 2013Q3

Source: Council of Mortgage Lenders / Registers of Scotland

On a more local level, we are seeing continued strong performance in core markets including Aberdeen City, Aberdeenshire, Edinburgh, East Renfrewshire and East Dunbartonshire and also secondary markets including Angus, Midlothian and Renfrewshire.

We estimate between 300,000 and 400,000 house purchases across the UK and around 20,000 in Scotland alone, between 2014 and 2016, could be facilitated by the two Help to Buy schemes. The Shared Equity element, aimed at supporting the new build sector, has already led to over 15,000 reservations in England in the first six months of the scheme. The equivalent scheme in Scotland has commenced with a price ceiling of £400,000 and has already received over 700 applications, according to Homes for Scotland. The Mortgage Guarantee element which started in October 2013, has the capacity to ease purchases across the UK over the next three years, assuming mortgage lenders have a moderate appetite for the scheme.

The Help to Buy launch into an improving market has triggered concerns that it will provoke another property bubble. However, given the strict lending criteria, its primary impact is likely to be increased demand leading to modest price growth. We forecast average values will rise by 4.5% next year in Scotland. We expect a slight slowdown in the rate of residential value growth and transactions across the mainstream markets in Scotland as the Help to Buy government stimuli come to an end, particularly during the years 2017 and 2018. However, we expect the economy to be a much better shape during that period, which will help underpin the housing markets towards the end of this decade.

Residential market forecasts across Scotland

Mainstream Residential Year value change transactions

2014 4.5% 88,000

THE CLIENT: Scottish Government Page 9 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a 2015 4.5% 94,160 2016 3.5% 99,746 2017 3.5% 101,741 2018 2.0% 102,000

Source: Savills Research

The Scottish housing market and independence - Demand not impacted by uncertainty

The question mark over whether Scotland will remain part of the UK following the Referendum in September 2014 does not seem to be impacting demand for Scottish property. “Edinburgh” remains the most searched for location outside London on savills.co.uk, closely followed by “Scotland”, and the number of applicants registered to buy north of the border has doubled in 2013. Political elections of any type often cause uncertainty and a subsequent pause in market activity, and it will be interesting to see how buyers and sellers react as the referendum date draws nearer.

Stamp Duty changes - Introducing the Land and Building Transaction Tax

From April 2015, Stamp Duty for Scottish residential and non-residential property sales will be replaced by a new tax, which will be collected within Scotland. It will be known as the Land and Building Transaction Tax (LBTT), which could favour residential sales at £180,000 or less under the proposed structure. Sales above £200,000 will incur a higher rate of tax than at present. Should this progressive form of Stamp Duty be applied, it will introduce positive results for 72% of buyers in the Scottish residential market, provided the market remains exactly the same. However, more than a quarter of house buyers will be hit with higher taxes.

There are no plans to reform Stamp Duty in the rest of the UK. Whilst we welcome a progressive new system, the proposed structure is likely to increase the costs to families and professionals looking to move up the housing ladder. The majority of housing suitable for these markets in the main cities of Scotland is priced at more than £200,000. LBTT will see the tax due on properties increase by an average of 34% in price bands from £180,000 to £1.5 million. Therefore, the LBTT is going to add to the cost of moving for those living in Scotland’s key cities. Reducing the ability of potential house buyers to move can create a static market, just as the restrictions on mortgage lending has done.

This presents problems for buyers and sellers alike and could lead to reduced market activity. Whilst the principles of a progressive tax allows a more realistic price curve and helpfully provides a tax free allowance to help those at the lower end of the market, the system needs to be fair for everyone. Our analysis indicates the proposed rates have not been sufficiently researched and do not take into consideration the composition of the Scottish housing market.

Second hand residential transactions at £400,000 and above

Year to Year to Year to Year to Area Sep10 Sep11 Sep12 Sep13 SCOTLAND 2,308 2,224 2,135 2,266 Edinburgh 764 674 757 759 Aberdeen area 384 459 423 479 Greater Glasgow 458 426 362 402 Tayside 157 145 137 164 East Lothian 108 85 107 97 THE CLIENT: Scottish Government Page 10 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a Fife 93 107 86 82 Stirlingshire 56 67 58 61 Ayrshire 70 63 48 57 Borders 51 52 45 46 Dumfries & Galloway 37 30 23 31 Highlands 59 49 31 31 West Lothian 30 30 21 23 Argyll and Bute 26 24 25 18 Midlothian (excluding Edinburgh) 13 13 10 14

Table source: MyHousePrice.com / Savills Research

Savills StockWatch - Second hand properties advertised at £400,000 and above in Scotland

Fresh stock -number of prime properties newly launched on to the market in Scotland All prime stock -total number of prime properties available to purchase in Scotland 1,800 1,572 1,600 1,462 1,400 1,292 1,325 1,548 1,165 1,151 1,395 1,200 1,268 1,282 1,000 1,021 1,072 800 955 674 690 606 600 456 415 428 392 423 400 367 245 183 178 205 200

0 A ug) - 2 0 1 Q1 2 0 1 Q2 2 0 1 Q3 2 0 1 Q4 2010 Q3 2010 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q 3 ( J ul Source: Savills Research

9.2 Local Residential Market Comment

As graph 1 above shows, the prime market in Dumfries and Galloway is very restrictive mainly as a result of its remote location. According to Registers of Scotland, the average sale price last year was approximately £136,000 which was a decrease of 2.1% from the previous year. The annual number of transactions is relatively static for the area at around 1700 over the last 3 years, this is almost half the number of transactions pre the property market crash.

Shambellie House is of significantly better quality and larger than the average Dumfries and Galloway property and therefore of higher value than the regional average, however it is within the prime price bracket that is struggling most in the current climate. Over supply of stock of this type is a significant issue and many vendors have to reduce prices in order to secure a sale.

THE CLIENT: Scottish Government Page 11 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

10.0 POTENTIAL OTHER USES

As requested by you, we have considered potential alternative uses including the following:

10.1 Residential Development to Two Dwellings

In principal this option would not be viable for the following reasons:

• We do not believe there is a strong demand in this location for a country house development in to multiple occupancy. Creating two properties detracts from the draw of a private country dwelling, most buyers looking for property in the countryside seek privacy which would be wiped out by the creation of two dwellings. • The residual valuation creates a negative value of approximately – £160,000 based on the following assumptions: - Two dwellings having a combined end value of circa £700,000; - A conversion rate of £50 per sq ft. (The £50 per sq ft is in line with costs provided to Scottish Government by Armour Construction Consultants); - A contingency of 5% of build costs, professional fees at 10% of build costs and marketing costs of £10,000 plus a further 1.75% further legal and professional fees in relation to the conveyancing.

10.2 Care Home Development

Our healthcare have reviewed the Property with a view to providing advice on it’s suitability as a care home – essentially it is not a suitable site for a healthcare development as a result of the following findings:

• Demographics

We have carried out a demographic analysis which shows that within a 15 minute drive time of the site, there is a high proportion of people being over the age of 65. However, despite being located in a very rural area, there are currently 11 homes within the catchment area. This results in a significant oversupply of bed spaces and therefore we would expect limited demand for new homes in the catchment area.

• Planning Applications

We have searched the ABI database for planning applications submitted within a 10 mile radius in the last two years for all medical related planning applications. This has identified that planning permission has been granted for one care home extension to provide an additional seven bedrooms and a new day room at an existing facility. In addition, three applications have been granted for new medical centres and plans under the NHS framework for various refurbishments and new builds throughout Dumfries and Galloway. We are also aware that planning permission is being sought for one nursery application. On this basis, it would appear that the oversupply referred to above may continue.

10.3 Hotel Development

An alternative use for the Property could be as a hotel and on the basis of the size it would be most appropriate for small, boutique hotel conversion however the following factors limit the viability of this option:

• Location – Although the Property is within an attractive location, it is not conveniently accessible from the main roads of the M74 and A75.

THE CLIENT: Scottish Government Page 12 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a • Size – On brief review of the Property plans, it is unlikely to be converted to a boutique standard hotel (e.g. all ensuite bedrooms) whilst keeping enough bedrooms / bathrooms to make a viable business.

11.0 VALUATION METHODOLOGY

We have adopted the comparable method of valuation in the preparation of our valuation which is the most common method of valuation of residential property. In preparing our valuation we have made enquiries of our own and public databases, local sales offices and our own local sales office and have had regard to recent transactions.

Our Projected Market Value is based on the following assumptions:

• The main house is converted back to residential use with the addition of a family kitchen, cloak rooms on the ground and principal floors, sufficient bathrooms on the first floor for number of bedrooms, general redecoration and renovation to bring the property to a modern standard; • The damp issues are remediated within the gate lodge and a full renovation is carried out including but not limited to a new kitchen; • That the works in order to achieve the above are completed by August 2014. • The market remains consistent as it is at time of reporting and with the projections in section 19 above.

We have also considered the comparables outlined within section 13.

12.0 ANALYSIS OF COMPARABLE EVIDENCE

Below is a Schedule of Sales Evidence that we have had regard to in reaching our opinion of the Property’s value. We would highlight the following transactions, which we consider to be particularly relevant to our valuation:

• Kirkennan Estate, Palnackie, Castle Douglas DG7 1PE sold for £891,500 in July 2013

The property comprised the main house with 4 reception rooms and 7 bedrooms (758m²), gate lodge, 3 courtyard cottages and 74 acres of gardens and land.

Kirkennan House is a larger property but in similar condition to the subject property, albeit it was already in residential use. The gate lodge and 3 courtyard cottages were in significantly better condition than Shambellie Lodge. There is significantly more land included in the comparable sale however more than wodl generally be considered necessary for a residential purchaser. Conclude that the sale price should be reduced for comparable purposes.

• Crawfordton House, Moniaive, Dumfriesshire DG3 4HG sold for £450,000 in October 2013

The property comprises a large main house extending to 21,317 sq ft, extensive outbuildings, a cottage and approximately 23.8 acres of grounds and land.

Comparable is significantly larger than subject property and in significantly poorer condition and therefore conclude that sale price should be increased for comparable purposes.

• Hensol Estate, Mossdale, Castle Douglas DG7 2NE sold for £4,092,000 in May 2012

The property comprised a large main house with 3 reception rooms and 10 bedrooms (1282m²) and ancillary cottage, 10 cottages/farmhouses and 2264 acres of farmland and forestry.

THE CLIENT: Scottish Government Page 13 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a The main house, courtyard cottage and approximately 12 acres of policies was analysed from the sale price as £750,000 however this house was in better condition than the subject property, the cottage was habitable and there was more land providing privacy to the Property. Conclude the sale price should be reduced for comparable purposes.

• Luce House, Brydekirk, Annan DG12 5LP sold for £790,000 in April 2012

The property comprised a substantial Victorian mansion house with 5 reception rooms and 8 bedrooms (545m²), 1 bedroom coach house and approximately 22.57 acres of policies.

The main house is in better condition and larger than the subject property and the sale included a larger area of land. Conclude that the sale price should be reduced for comparable purposes.

13.0 PRINCIPAL VALUATION CONSIDERATIONS

13.1 Location and Situation

The Property is within an attractive rural location within close proximity to the small hamlet of New Abbey and the larger town of Dumfries within Dumfries and Galloway. Dumfries and Galloway is a secondary location due to its remote situation away from the central belt.

13.2 The Main House

The main house has most recently been used as a museum, tea room and shop and although it is in reasonable decorative order and appears to be in fair condition. Significant expenditure is required to bring the house in to modern day residential standard such as creation of a kitchen and adding bathrooms.

13.3 Ancillary Accommodation

The Property benefits from the gate lodge to the east, however this property is in very poor condition and currently not habitable. We consider that this property would be included with the main house when selling the Property.

13.4 Gardens and Grounds

The Property extends to approximately 5.7 acres in total, predominantly woodland. The main house benefits from formal gardens which are attractive and the gate lodge has a small garden to the rear. Generally the Property has an appropriate area to provide both privacy and amenity.

13.5 Tenure

The Property is valued with the benefit of vacant possession.

13.6 Other Uses & Recommendation

As instructed, we have considered other uses for Shambellie House, however we believe that due to the location and size of property that uses other than residential are not viable. If the Scottish Government are looking to secure optimum value with minimal cost exposure our recommendation would be to sell the entire Property in it’s existing state as a single principal residential dwelling with a gate lodge.

13.7 The Residential Market

Please refer to comments within section 10. THE CLIENT: Scottish Government Page 14 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a 14.0 VALUATION SUMMARY

14.1 Existing Market Value

Having had regard to our comments and assumptions detailed within this report and in light of the comparable evidence, we are of the opinion that the Market Value of the heritable interest in the Property, on the basis of full vacant possession, as at date of report, is:

£650,000 (SIX HUNDRED AND FIFTY THOUSAND POUNDS)

14.2 Projected Market Value

Having had regard to our comments and assumptions detailed within this report and in light of the comparable evidence, we are of the opinion that the Projected Market Value of the heritable interest in the Property, on the basis of full vacant possession and as described within section 11 above, as at date of report, is:

£800,000 (EIGHT HUNDRED THOUSAND POUNDS)

15.0 STANDARD CONDITIONS AND GENERAL ASSUMPTIONS

Standard Conditions

Our valuation has been carried out on the basis of the following standard conditions:

1. We have made no allowance for any Capital Gains Tax or other taxation liability that might arise upon a sale of the property.

2. Our valuation is exclusive of VAT (if applicable).

3. No allowance has been made for any expenses of realisation.

4. That inspection of those parts which have not been inspected, or a survey inspection would not reveal material defects or cause the valuer to alter the valuation materially.

5. Excluded from our valuation is any additional value attributable to goodwill, or to fixtures and fittings which are only of value in situ to the present occupier.

6. No allowance has been made for rights, obligations or liabilities arising under the Defective Premises Act 1972, and it has been assumed that all fixed plant and machinery and the installation thereof complies with the relevant UK and EEC legislation.

7. Energy Performance Certificates (EPCs) are required for the sale, letting, construction or alteration of all residential buildings, on non-domestic residential buildings over 538 sq ft (50 sq m) in England and Wales and on all buildings in Scotland. The effect of EPCs on value is as yet unknown, given that the market has yet to respond to their introduction. Therefore, we have not considered the property’s EPC rating in forming our opinion of value. However, should this position alter, we reserve the right to reconsider our opinion of value.

8. Our valuation is based on market evidence which has come into our possession from numerous sources. That from other agents and valuers is given in good faith but without liability. It is often provided in verbal form. Some comes from databases such as the Land Registry or computer databases to which Savills subscribes. In all cases, other than where we have had a direct THE CLIENT: Scottish Government Page 15 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

a involvement with the transactions, we are unable to warrant that the information on which we have relied is correct although we believe it to be so.

General Assumptions

Our valuation has been carried out on the basis of the following Assumptions. Unless it is made apparent by our express statement to the contrary, in the report, we will have been under no duty to have verified these assumptions. If any of them are subsequently found not to be valid, we may wish to review our valuation, as there may be an impact on it.

1. That the heritable interest is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings and good title to be shown. Should there be any mortgages or charges, we have assumed that the property would be sold free of them. We have not inspected the Title Deeds or Land Registry Certificate.

2. That we have been supplied with all information likely to have an effect on the value of the property, and that the information supplied to us and summarised in this report is both complete and correct.

3. That the building including extensions or alterations has been constructed and is used in accordance with valid planning permissions, all statutory and bye-law requirements, and that there are no breaches of planning control. Likewise, that any future construction or use will be lawful (other than those points referred to above).

4. That the property is not adversely affected, nor is likely to become adversely affected, by any highway, town planning or other schemes or proposals, and that there are no matters adversely affecting value that might be revealed by a local search (or their national equivalent), replies to usual enquiries, or by any statutory notice (other than those points referred to above) and that its condition, its use or intended use is not or will not be unlawful.

5. That the building is structurally sound, and that the services operate efficiently. That there are no structural, latent or other material defects, including rot and inherently dangerous or unsuitable materials or techniques, whether in parts of the building we have inspected or not, that would cause us to make allowance by way of capital repair (other than those points referred to above) or materially alter our valuation. Our inspection of the property and this report do not constitute a building survey.

6. That the property is connected, or capable of being connected without undue expense, to the public services of electricity, water and telephones.

7. That in the construction or alteration of the building no use was made of any deleterious or hazardous materials or techniques, such as high alumina cement, calcium chloride additives, woodwool slabs used as permanent shuttering and the like (other than those points referred to above) and that it is not on landfilled ground. We have not carried out any investigations into these matters.

8. That main services and roads giving access to the property have been adopted, and that any lease provides right of access and egress over all communal estate roadways, pathways, corridors, stairways and use of communal grounds, parking areas and other facilities.

9. That vacant possession is provided.

10. Our enquiries have not revealed any contamination affecting the property or neighbouring property which would affect our valuation. However, should it be established subsequently that contamination exists at the property or any neighbouring land, or that the premises have been or are being put to any contaminative use, this might reduce the values now reported. THE CLIENT: Scottish Government Page 16 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

16.0 VERIFICATION

This report contains many assumptions, some of a general and some of a specific nature. Our valuations are based upon certain information supplied to us by others. Some information we consider material may not have been provided to us. All of these matters are referred to in the relevant sections of this report.

We recommend that the Bank satisfies itself on all these points, either by verification of individual points or by judgement of the relevance of each particular point in the context of the purposes of our valuations. Our Valuations should not be relied upon pending this verification process.

17.0 CONFIDENTIALITY

In accordance with the recommendations of the RICS, we would state that this report is provided solely for the purposes stated above. It is confidential to and for the use only of the party to whom it is addressed and no responsibility whatsoever is accepted to any third party for the whole or any part of its contents. Any such parties rely upon this report at their own risk.

Neither the whole nor any part of this report or any reference to it may be included now, or at any time in the future, in any published document, circular or statement, nor published, referred to or used in any way without our written approval of the form and context in which it may appear.

Yours faithfully For and on behalf of Savills (UK) Limited

Sian Robinson MRICS Hugo Struthers MRICS RICS Registered Valuer RICS Registered Valuer Associate Director

THE CLIENT: Scottish Government Page 17 THE PROPERTY: Shambellie House, New Abbey, Dumfries DG2 8HQ

You may re-use this information (excluding logos and images) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or e-mail: [email protected].

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

ISBN: 978-1-78412-640-7 (web only)

Published by the Scottish Government, July 2014

The Scottish Government St Andrew’s House Edinburgh EH1 3DG

Produced for the Scottish Government by APS Group Scotland, 21 Tennant Street, Edinburgh EH6 5NA DPPAS33042 (07/14)