Bosses at business development agency Scottish Enterprise have held informal talks over a second phase for Dundee’s District 10 creative industries hub just six months after the opening of the development’s first stage.
Formal moves to progress the plan will begin in the coming weeks, after lettings at a first office block created from shipping containers comfortably outstripped expectations.
Project manager for Dundee Waterfront Peter Noad said the 10 of the 15 initial units are already occupied, with a further two currently subject to negotiations.
Scottish Enterprise had hoped to achieve 75% occupancy inside 12 months, but could reach 80% in half that time if the ongoing discussions come to fruition.
The masterplan for the former Seabraes rail yards includes a total of nine office buildings in the same style, and the creation of a new business district focussed on high-tech firms, creatives and start-ups.
Economic development experts believe the full project would create work spaces for up to 500 people, while supporting several of the city’s key sectors. The first unit alone which opened in January at a cost of £1.7m is expected to boost the Dundee economy by around £10m over the coming decade.
“A total of 15 units are available and we currently have 10 units let,” Mr Noad said. “We’re in negotiations over another unit and there’s another unit where one of the existing tenants is looking to expand.
“It has been a lot faster than we thought it would and a lot better than we thought it would be. We had anticipated it would a year before we were at 75% capacity and we’re at 66% after six months, so we are very pleased.”
Games companies, an architectural practice, an app developer and design firm are amongst those to have taken on space and are all are squarely within the ‘creative’ audience targeted by the body.
Mr Noad said the success of the development had proven the wider project would be attractive in the market.
He said the project could progress “in a number of ways”, with developers buying plots or working in partnership with the Scottish Enterprise. Property consultant Ryden has just been appointed as agent for the site.
“What we’d really like to see is whether the private sector would come in and do phase two,” Mr Noad said. “Plainly, there is market interest and really the next stage is talking to the private sector.
“This is very much about the creative industries which is a very important sector for Dundee. Scottish Enterprise recognises that and wants to ensure there is a large hub in District 10.”
Architect Jon Frullani moved his business into the building in January, and has since signed an extension to his lease and taken on more staff.
“It’s really give us a platform to expand and is a bright, modern space,” he said. “Clients love it, and it’s been fantastic from a business point of view.”
And Kevin Fox, MD of innovative and design-led luggage firm LAT_56, called on Scottish Enterprise to complete its vision for the area.
“It’s a really good space, and they need to go for the plan,” he said. “If they can create the right environment then this could be a proper creative hub for Dundee’s young companies.”