ETZ Property Improvement Fund secures £5.3m revitalisation for Altens

Seven projects win grants to support energy transition activities

Funding from Energy Transition Zone Ltd (ETZ) has unlocked a £5.3 million investment package to revitalise years-vacant industrial buildings across the Altens and East Tullos industrial estates.

The not-for-profit’s Property Improvement Fund (PIF) has delivered grants to seven projects within the Zone, attracting new tenants and facilitating expansion for businesses in low carbon energy and renewables.

ETZ Ltd has awarded grants of £1.56m, unlocking total investment of more than £5.3m, with successful projects supporting up to 100 jobs in the region.

Among the companies to receive a grant are AJT Engineering, facilitating a new renewables division and fresh recruitment, and Air Liquide, whose project has allowed expansion into low-carbon markets with associated employment opportunities.

Aberdeen One Property has successfully secured funding to enhance a vacant property, which has since unlocked investment with Ross Safety & Survival confirming their long-term tenancy within the Zone.

The majority of the buildings supported have been empty for several years, the longest among them being vacant since 2016.

It comes after the 2014 oil price crash delivered shockwaves to Aberdeen’s real estate markets. The south side of the city, where the ETZ is situated today, saw mass over-supply and a lack of investment, which was still felt as recently as the middle of 2023, when more than one million square feet of property lay vacant. The PIF programme is an initial intervention to addressing what remains a significant challenge.

PIF funding is being provided as part of the ETZ masterplan, supporting the widespread delivery of new and refurbished commercial property aligned to net zero principles. Funded projects will benefit from long-term sustainability and reduced running costs.

The full list of awardees is:

• BB Minto Ltd

• Aberdeen One Ltd / Ross Safety and Survival

• AJT Engineering Ltd.

• Air Liquide Oil & Gas Services Ltd.

• Sinomine Speciality Fluids Ltd.

• EPIC ALVA 1 Ltd

• West Coast Estates

Criteria for the grants included adoption of net zero and circular economy principals in their building improvement projects and energy efficient operations.

Funding has been provided to secure new private sector investment which will retain and attract businesses operating in low carbon energy and the wider supply chain, including decarbonisation of oil and gas.

Neil Young, ETZ Land and Planning Director, said: “These grants deliver a shot in the arm to industrial property in the south side of Aberdeen, bolstering business confidence while helping attract and expand our net zero supply chain.

“The impacts of the 2014 oil downturn can still be seen in this region, underlining the importance of the ETZ’s support ecosystem in developing our low-carbon industries.

“Attracting nearly £4m of private investment, this fund showcases a rising demand in the city and the North East’s attractiveness as a global energy transition destination.”

David Mitchell, Managing Partner at EPIC ALVA, said: “We acquired Units 7&8 Souter Head Road, Altens in December 2023 from an owner occupier, with the intention of speculatively refurbishing the units.

“Our decision to make the purchase was based on the vision of ETZ Ltd. The grant funding we were awarded amounted to 25% of costs, allowing us to then press ahead with a comprehensive refurbishment to deliver high quality accommodation suitable for the energy supply chain.

“We were so impressed by the individuals at ETZ and the speed with which they worked alongside us to offer and then deliver the grant. It is a credit to the company and with an attitude like this I am certain that they will achieve their goals for the Energy Transition Zone and the promotion of the North East of Scotland.”

Martin Ross, Managing Director of Ross Safety and Survival said: “We are delighted to become the latest entrant to the Energy Transition Zone with the Property Improvement Fund playing an instrumental role in securing our tenancy.

“As a specialist safety provider serving the industry, including oil and gas and offshore wind, the Zone is the ideal base for the next stage of our own energy transition journey and for supporting our customers.”