Dundee developer Unicorn is set to start work on a new £3 million office building following an upturn in demand for space in the city.
It plans to turn the last remaining transit shed at its City Quay development Shed 25 into high-quality office space after submitting planning documents earlier this month.
The move marks a step-up in activity for award-winning Unicorn, coming four years after its completion of the nearby Dundee One complex.
Unicorn director Tim Allan said the remaining space at Dundee One’s River Court building continues to attract new tenants.
Nearby Rushton Court is home to one of the Scottish Police Authority’s central forensic facilities.
“Shed 25 is the last of the traditional transit sheds at City Quay, and we are going to put that into office space because demand is currently going through the roof in Dundee,” Mr Allan said.
“Lots of people are looking for space and I think we’ll be full at Dundee One later this year.
“We will be announcing more new tenants at River Court shortly.”
Contractors are expected to start work on the site, which sits alongside Unicorn’s residential development at the Clocktower, this spring.
The design team has been led by Archial Architects, and the project will target a “very good” rating under the BREEAM environmental assessment scheme.
It is hoped that the shed which will create 22,000ft2 of Grade A space will attract those seeking quality serviced office accommodation, technology companies, and businesses targeting Dundee’s nascent renewable energy sector.
Unicorn hopes to attract investment using the UK Government’s Business Premises Renovation Allowance scheme, which reduces tax liabilities on capital invested in returning empty and run-down properties to use.
However, it is understood that the project is also likely to be part-funded by the £50m Scottish Partnership for Regeneration in Urban Centres scheme, which was launched by the then infrastructure and capital investment secretary Alex Neil in late 2011.
The initiative, financed by the Scottish Government and the European Commission, was established to help kick-start regeneration in 13 of Scotland’s most deprived council areas including Dundee, Clackmannanshire and Fife by providing funding for development projects which banks would not or could not support.
Key objectives included the “unblocking” of stalled projects and improvement of market confidence through the provision of flexible and competitive terms.
Shed 25 is expected to be the first development to benefit from the scheme outwith the Central Belt.