Knight Frank has helped piece together what it says is likely Scotland's largest-ever leasehold transaction as part of a £350 million investment in the country's green energy sector.
KF advised Japanese multinational corporation Sumitomo Electric Industries on the recent lease acquisition of a 37-acre site next to Port of Nigg, in the Inverness and Cromarty Firth Green Freeport. The long lease has been agreed with three landowners including the Crown Estate.
The transaction unlocks SEI’s proposed £350 million investment which will see construction of a 618,000-square-foot subsea high voltage transmission cable manufacturing plant in the Scottish Highlands, due to open in 2026. The Scottish Government provided £24.5 million in public sector funding.
The factory aims to supply critical elements for the reinforcement of the UK electricity transmission grid and connecting renewable energy production facilities.
Knight Frank's Sumitomo Mitsui Trust Bank European Desk, Scotland industrial team and global occupier strategy and solutions provided SEI with advice.
Edward Fairweather, partner, London capital markets and development and head of SMTB relationship at Knight Frank, said: “Marking a significant milestone in Scotland’s green energy sector, we are proud to have played a pivotal role in this deal. Leveraging the strong relationship between Knight Frank and Sumitomo Mitsui Trust Bank, our integrated teams were appointed to act on the lease acquisition on behalf of SEI. This strategic partnership underscores our commitment to delivering exceptional service and fostering international investments in the UK.
“The high-profile nature of this deal has garnered significant attention and SEI’s investment is testament to the dynamic opportunities that Scotland offers and strategic importance of green energy on the global stage.”
Sarah Beattie, global head of corporate ESG Strategy at Knight Frank, said the sophisticated deal is an example of Knight Frank’s "clear ambition to shape the real estate industry and build a sustainable future, working in partnership with others".
Scott Hogan, Head of Scotland Logistics & Industrial at Knight Frank, said it is one of the first transactions of its kind in either of Scotland’s Green Freeports and has been recognised as the largest inward investment project for the Scottish Highlands.
“The advantages of being located within a Green Freeport are clear to see and we hope that this will be the first of many inward investment projects into Scotland, which is well positioned to capitalise at Inverness and Cromarty Firth and Forth Green Freeport.”
Ground was broken on the development in May.
The Inverness and Cromarty Firth Green Freeport company includes Port of Cromarty Firth, Port of Nigg (Global Energy Group), Port of Inverness, Highland Deephaven and Port of Ardesier (Haventus).
Estimates suggest that Scotland’s fledgling Green Freeports could attract investment of £10.8 billion and create up to 75,000 high quality jobs between them, many of them in renewable energy generation.
For a recent expert opinion on the opportunity click here.