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The Crichton Trust

Business Plan 2015- 2018

CONTENTS

Executive Summary

INTRODUCTION ....................................................................................................................................... 3

GOVERNANCE AND RESTRUCTURING OF THE TRUST ............................................................................. 4

VISION AND STRATEGY ........................................................................................................................... 5

A) Achievements so far ........................................................................................................................ 5

B) The Crichton today is home to a number of valuable assets: ........................................................ 5

Grow the University Campus and Facilities ......................................................................................... 6

Research and Development ................................................................................................................ 7

Environmental Sustainability .............................................................................................................. 7

Creation of Well Paid and Sustainable Jobs ........................................................................................ 7

KEY STAKEHOLDER ENGAGEMENT.......................................................................................................... 8

Strategic Partnerships ......................................................................................................................... 8

Scottish Futures Trust ......................................................................................................................... 8

MASTER PLANNING AND STRATEGIC INVESTMENT OPPORTUNITIES .................................................... 8

New Learning Spaces ........................................................................................................................ 10

Student accommodation .................................................................................................................. 10

National Centre for Resilience .......................................................................................................... 10

FUTURE OPPORTUNITIES ...................................................................................................................... 11

On the Crichton Estate - Strathclyde University ............................................................................... 11

Crichton Hall ...................................................................................................................................... 11

Nithbank ............................................................................................................................................ 11

KEY DELIVERABLES ................................................................................................................................ 16

CONCLUSION ......................................................................................................................................... 16

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EXECUTIVE SUMMARY

Following eighteen months of radical change to the structure, staffing and partnership arrangements

of the Trust and its subsidiary, the Crichton Development Company, this plan represents a settled

programme for the development of the Crichton with detailed actions and budgets for 2015-16 and

indicative actions and budgets for the following two financial years.

In the past 12 months since the appointment of a new CEO, the Trust has undertaken a complete

review of all aspects of their business activities and has started to implement a programme of

organisational change and the feasibility of a number of major new partnership projects.

In discussions with the academic partners and stakeholders it is apparent that there is a great

opportunity to create a truly unique environment for the youth of Dumfries and Galloway to

progress through FE and HE and into meaningful careers at the Crichton but this needs significant

investment in both facilities and partnerships with other institutions and social enterprises to enable

us to realise our ambitious plans.

There are many different ways to attract investment to the Region. The Trust, although focused

initially on the Crichton Estate can have a wider strategic role to play in this regard which will be

beneficial not only to the population of Dumfries but to the Region and beyond.

The key to external investment being attracted to the Region is the creation of sustainable Research

and Innovation linked to the Academic Partners at the Crichton today and the potential to attract

other academic institutions to the Region. Through the creation of a Research and Innovation Hub

there would be many opportunities for research to attract external investment to the Region.

All of the above relies upon the sustainability of the estate and the Trust ensuring that all assets are

utilised to maximum effect. To this end, the Trust commenced a master planning exercise in

consultation with stakeholders which will underpin the conservation values of the site and inform

investment decisions for the future.

Projects for which funding is being sought from Dumfries and Galloway Council, among others,

includes the Church which still requires repairs but it is also our intention to use some of the above

funds to create a visitor centre at the church using the Crypt and/or the under croft. This is a greatly

underutilised asset and the work will also ensure that it is used more frequently for concerts and

events to ensure its long term viability as a building and as a 7 day a week visitor attraction.

The estimated costs for the visitor centre in the church are in the region of £150,000.

The further funding proposal contained in this plan is to refurbish the South Wing of Easterbrook

Hall – the old hydrotherapy suite which comprises of some 6500 ft2 of currently unused space - for

the reinstatement and modernisation of the pool along with Sauna, Steam Room, treatment rooms

and a new kitchen to service the existing Gilchrist Room and a new 70 cover restaurant with an

adjacent bar and Café/Bistro.

The brand for this development is Neuro’s Spa, Bar & Restaurant which also is hoped to involve an

international drinks brand. Neuro’s is intended to bring a name to the region and to provide a

commercial benefit for reinvestment in the Crichton estate. The Main Hall Balcony is also being

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brought back into use with potential for a roof top terrace bar at Easterbrook and this will greatly

increase the capacity to bid for main stream entertainment to Dumfries.

The budgeted capital cost for these works is in the region of £560,000.

The Trust would cover any shortfall of funding and indeed has already paid for the feasibility and

designs costs to date form its own resources.

The relationship with strategic partners such as Dumfries and Galloway Council is key to all of the

above and we are working hard to ensure confidence in the Trust’s ability to deliver tangible

outcomes that benefit not just the Crichton or Dumfries but regionally, nationally and internationally

By creating the above social and functional spaces on the estate combined with the proposals to

build Student residences and the potential for a further 7000m2 of learning space to accommodate

UWS, SRUC and UoG, the Crichton Estate itself has a very exciting future. These investments will

drive growth in many areas that will be felt across and well beyond the region.

INTRODUCTION

1. This is the first Business Plan to be prepared by the Crichton Trust for all its operations since

the publication of the consultants’ report “The Crichton 2020+ Business Plan” for Dumfries and

Galloway Council in July 2012 and the resultant decisions of the Council to put in train a transition to

a new format for the Trust.

2. Following eighteen months of radical change to the structure, staffing and partnership

arrangements of the Trust and its subsidiary, the Crichton Development Company, this plan

represents a settled programme for the development of the Crichton with detailed actions and

budgets for 2015-16 and indicative actions and budgets for the following two financial years.

3. Aside from the significant changes made to the organisation, the recent period of recovery

from the recession has been especially promising for the Crichton estate in view of the strategic

partnerships which have been formed for the delivery of key projects for the regeneration of the

region, not least in the further and higher education sector.

4. The Trust continues to forge an excellent working relationship with Dumfries and Galloway

Council with whom it is working to establish the Crichton as a flagship for the Council’s new

economic development strategy. As a member of the Crichton Campus Leadership Group, it has

supported the group in its aspirations to develop facilities of excellence for students and staff of the

universities and colleges and has gained the confidence of the Scottish Funding Council as a

provider. In consultation with the Council, the NHS Dumfries and Galloway and other public sector

partners, it is developing its capacity as a delivery agency of choice for the Scottish Futures Trust for

complex public sector property projects which add value for the public bodies, businesses and the

community.

5. At this point, the rapid progress of the last year in the development of new project proposals

and partnership arrangements has made it difficult to set out, with any confidence, a clear long term

strategy as the basis of this Business Plan. While the short term horizon is clearer, there are a

number of major issues to be explored further in connection with the longer term. Accordingly, the

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Trust will embark on the preparation of a vision and long term strategy later in 2015, to inform the

roll forward of the Business Plan for 2016-7.

6. Meantime, to aid both the delivery of new development projects in the pipeline and to

update the aims of the Trust with regard to its heritage responsibilities for the site, a master

planning exercise was commissioned at the start of 2015 with a view to launching a new

development and conservation framework, replacing that last prepared in 2004, within which all

partners can work with confidence. This involves extensive stakeholder consultation and should be

completed by summer 2015.

7. The Crichton Trust is committed to supporting its stakeholders to make a step change in the

impact that regeneration on this site can make to the region of Dumfries and Galloway as a whole

and beyond.

GOVERNANCE AND RESTRUCTURING OF THE TRUST 8. The production of this new business plan is especially significant as it is the first following a

major review of the Crichton project and a restructuring of the Trust as the body responsible for

delivering it.

9. At the start of 2012, Dumfries and Galloway Council, along with the Trust and other Crichton

partners, commissioned a report from economic consultants in view of concerns over the future

viability of the project. Despite early successes since the estate was taken over by the Council’s

predecessor in 1995 and the Crichton Trust and Development Company set up as its arm’s length

delivery bodies, the financial model and governance of the project were subsequently not

considered sustainable, possibly as the original plan for a charity/subsidiary model was not fully

carried through.

10. The Crichton 2020+ Business Plan by Biggar Economics in July 2012 confirmed the

development potential of the site as a key driver for the economy of the region, provided the focus

remained firmly around education and knowledge industries and provided a new financial and

governance model was assumed. During 2013, the Council, as owners of the site, considered the

options available to it and decided to reconfirm the role of the Trust subject to a number of key

changes. A Crichton subcommittee had already been established by the Council to create more

effective strategic links with the project. By the end of that year, the Council had become sole

member of the Trust, the majority compliment of councillor trustees had all been replaced by

external nominees of the Council and an independent chairman appointed. The CDC board had

been run down temporarily and an interim Chief Executive and Managing Director of the Trust and

CDC appointed to run a holding operation.

11. At the start of 2014, the new board of trustees set out to appoint a new Chief Executive

whose first task in May of that year was to reenergise staff morale and relationships with

stakeholders after a 2 year period of stagnation. It was also agreed immediately to restructure the

group such that the property management would come under the Trust and not the subsidiary CDC,

as this had been seen by the consultants as a crucial inhibitor to effective working with the Trust’s

strategic partners. It was also a threat to the continued charitable status of the Trust which had

been starved of income flow. At the same time, this separation allowed greater focus on the core

business of the subsidiary CDC in service operations, especially events management and catering at

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Easterbrook Hall and CDC now has its own Managing Director with a small board including trustee

non executive directors.

12. While the final stages of the restructuring will not take place until summer of 2015, as leases

are finally changed, the process has involved a complete review of all aspects of business activity and

the commencement of a programme of change across the organisation. Major changes have also

taken place to managing the resources of the Trust and CDC, reducing tax liabilities and making

better use of the asset base to the advantage of strategic partnerships with the Council and other

public funders such as the Scottish Funding Council for FE and HE Education and the Scottish Futures

Trust.

13. The Trust has prepared this Business Plan in the knowledge that it is already a far more

viable and effective organisation and it intends to keep under continuous review its fitness for

purpose and the wider strategic landscape for regeneration in Dumfries and Galloway. The

experience of the recent changes confirms that governance and senior management of the highest

calibre is required to maintain the necessary innovative, strategic and business like response to the

challenges and expectations which have been raised.

VISION AND STRATEGY As indicated earlier, the Trust does not have an up to date strategic plan for the Crichton but will

prepare a new business strategy later in the year and will complete a master plan as a strategic

development framework for the site in summer of 2015. The last strategic framework was prepared

in 2004. As a result, it has been necessary to prepare this Business Plan on the basis of established

aims for the development of the Crichton and the emerging stakeholder preferences from the

consultations for the new master plan. For the time being, much can be built on A) existing

achievements and B) the assets created as outlined below.

A) Achievements so far • a range of developments have been funded and delivered, with buildings converted for

education, public sector and private sector tenants;

• universities and colleges, delivering distinct missions and each with their own higher

education and further education student profiles, have been secured for the region;

• there has been steady growth in higher education student numbers;

• postgraduate, research and knowledge exchange activities have commenced at The

Crichton;

• the Crichton has obtained national recognition as an education campus;

• a range of businesses and other organisations have set up on site;

• the Crichton has been recognised as an important economic driver for Dumfries & Galloway

with currently in excess of 1600 well paid jobs based on the estate ; and

• Commitment has been secured from stakeholders to the next phase of the development of

the Crichton.

B) The Crichton today is home to a number of valuable assets:

• a range of educational institutions including Dumfries & Galloway College, the University of

the West of Scotland and the University of Glasgow.

• The Open University and the Scottish Agricultural College also use facilities that are on site;

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• a Business Park, which has 5,824 square metres of floor space and a range of public and

private sector tenants and currently running at approximately 80% utilisation

• Easterbrook Hall, which caters for events, weddings and functions;

• Holiday Inn Dumfries, a 71 bed modern hotel run by the Dominvs Group;

• heritage assets such as the memorial church;

• public parkland; and

• The adjacent 22.5 hectare Ladyfield site (leased by the Trust from Dumfries & Galloway only

until 2016.)

14. The Trust recognises that there is one clear outcome that is required to support the

Council’s Economic Development Strategy for the future social and economic success of Dumfries

and Galloway. The Crichton estate needs to deliver outcomes that are relevant to the region as a

whole – especially the creation of well paid and sustainable jobs. The Trust believes that this is best

achieved through the furtherance of the current FE and HE education offerings but critically aligned

with world class Research and Innovation that will in turn attract serious commercial investment into

the region.

15. If the projects being considered for future development in the South Dumfries area come to

fruition we could be looking at investment in excess of £150 million in the next 5-10 years alone.

16. Accordingly, the Trust will work with key stakeholders to develop a number of Strategic

Themes for the purposes of this plan.

1. Grow the University Campus and Facilities

2. Research and Development 3. Environmental Sustainability 4. Creation of well paid sustainable jobs

Grow the University Campus and Facilities

17. Dumfries and Galloway Council’s Regional Economic Strategy 2015-2020 recognises the

opportunity that the Crichton University Campus presents. It states -

18. “The co-location of multiple HE and FE Institutions on the Crichton Campus is unique in

Scotland. We have campuses of the University of Glasgow, the University of the West of Scotland, the

Open university in Scotland, Scotland’s Rural University College, and Dumfries and Galloway College

clustered on the Crichton Campus and opportunities to expand the He and FE across the region”.

19. The University of the West of Scotland (UWS) Corporate Strategy 2014/20 states that the

University aims to grow by 3,000 enrolled students by the end of the academic year 2019/20 across

its campuses. In order to meet future teaching needs at the Crichton Campus new flexible teaching

space of some 4,000m2 is required for the digital age. This may require a new flagship building

situated at a prominent location on the Campus. In addition student residences are required in order

to attract greater student numbers.

20. Scotland’s Rural University College (SRUC) has announced it aims to move its existing

teaching from the Barony Campus to a brand new, modern facility possibly adjacent to Dumfries and

Galloway College and its existing SRUC research and consultancy activity at the Crichton Campus.

The timescale for this development could be by 2018/19 and would possibly require up to 3000m2

of new teaching space.

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21. The Campus is also considering the establishment of a Creative Learning Space which would

act as a Business Incubator but more in line with the Google Campus model to stimulate

collaboration and creative thinking than the more tradition service office with a desk and phone.

This facility would not only be available to Students but open to all across the Region with a

sustainable growth business opportunity that has the potential to contribute meaningfully to the

local economy.

22. In order to support the future growth of the Campus high quality student residences will be

required in the region of 400-500 bed spaces.

23. The Easterbrook South Wing project will contribute to facilities on site for all users but

significantly enhance the Estate as a place of work or study and attract quality staff and students

nationally and internationally.

Research and Development

24. The key to external investment being attracted to Dumfries and Galloway is the creation of

sustainable Research and Innovation linked to the academic partners at the Crichton and the

potential to attract other academic institutions to the region. A Research and Innovation Hub for

Renewable Energy, Environmental and Climate Change Research and Innovation in partnership with

other academic stakeholders on Campus is being considered. A National Centre for Resilience to be

located on the Crichton Campus will bring Scottish Government jobs to the Region and there would

be related research streams.

25. Following discussions with the Principal of Strathclyde University (UoS) there is the

opportunity to work with the UoS in developing a Research and Innovation facility in Dumfries.

26. The establishment of research and development initiatives could in turn lead to business

spin offs and business creation with the aim of creating well paid and sustainable jobs for the area.

Environmental Sustainability

27. The Trust will require to develop a policy on environmental sustainability for the Crichton

Estate in relation to the efficient use of the existing heritage buildings, the development of new

buildings and forms of renewable energy. Carbon foot printing and preparation of low carbon

targets for future development on the site would require to be established. The ultimate aim would

be carbon neutral by 2020.

Creation of Well Paid and Sustainable Jobs 28. The Dumfries and Galloway Council Regional Economic strategy places the Crichton at the heart of its strategy for sustainable economic growth across the Region. 29. The provision of FE and HE is at the core of this strategy but world class Research and Innovation will attract commercial investment to the region from both national and international source developing a sustainable local economy providing well paid jobs that attract people from a national and international audience to aspire to come and work in Dumfries and Galloway.

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KEY STAKEHOLDER ENGAGEMENT 30. Critical to the success of the Trust plans and aspirations is the forging of close relationships

with the principal stakeholders. There is little doubt that the closer working relationship with the

Council has been instrumental in turning the Trust around and can only continue to grow in

importance as the Trust take on projects of greater importance and magnitude for the Region.

31. Relationships with the Academic Institutions and other public sector bodies in the Region

are now well aligned enabling projects to move forward with a momentum not seen in recent years.

Strategic Partnerships

32. Developments on the scale of the above projects will require the Trust to go into partnership

with third party organisations to secure the level of funding anticipated to develop these

opportunities. Once discussions have reached a more meaningful stage we will be appraising the

NHS and the local Council on a regular basis.

Scottish Futures Trust

33. The Trust has been working with the SFT in recent months engaging in a series of workshops

to first establish the needs of the Public Sector bodies across the Dumfries and Galloway Region

including the Council, NHS, SFC and the Education Establishments. The need for the NHS to find

creative solutions to its property assets in the region in light of the new hospital development has

acted as an invaluable catalyst to bring all the above together in meaningful and candid discussions.

34. We are on the edge of an extraordinary alignment across the region that is enabling

discussions and collaborations that as little as 12 months ago would have been hard to imagine.

35. The SFT are seeing the Trust’s role evolve more in line with its original objectives – one of a

region wide remit rather than purely focused on the preservation of the Crichton Estate itself. The

last in a series of five workshops took place in May and the SFT met with the Council recently to

provide feedback their findings and recommendations. They will be circulating these to all

participants in the coming weeks.

MASTER PLANNING AND STRATEGIC INVESTMENT OPPORTUNITIES 36. In February this year The Trust went out to tender to appoint Master Planning Consultants

for the Crichton Estate. This was a key appointment as the Trust had started to identify many

possible development opportunities and quickly realised that it was essential to develop a cohesive

development strategy rather than a proliferation of individual buildings and initiatives on the Estate.

37. It was also recognised that the Crichton Estate has the potential to be a key driver in the

social and economic change for Dumfries and the Region beyond and that this should be a key

consideration in the formulation of any proposals derived from this master planning exercise.

38. Coincidentally the timing of this work runs alongside the Council’s own master planning

exercise in relation to the South Dumfries area as proposed in the Local Development Plan. To

ensure that the projects were aligned, the Trust invited the Council to participate as a stakeholder in

the development of their plans, which also includes the preparation of a Conservation Area

Appraisal for the Crichton conservation area.

CDC/EB

Structure

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39. This collaboration has worked well and will ensure actionable outcomes from the Trust’s

work.

Crichton Memorial Church and Crypt

40. The Church is a greatly underutilised asset of the Crichton Estate and with the amount of

money that had been spent in recent years and indeed already identified for future restoration

requirements it is essential that the Trust bring the building into use as a main stream venue and

visitor attraction.

41. To facilitate this it is proposed that the Crypt is developed as a visitor centre for the Estate as

well as offering a basic café and toilet facility for visitors to the grounds. As the highest profile

building on the estate and its proximity to the main car park makes it the ideal location for visitors to

find out information about the History of the estate, the tenants and the Academic Institutions.

42. It is also planned that through the installation of a lift into the church the church itself would

become accessible to the Public. The costs are expected to be approximately £150,000 to complete

this development.

Easterbrook Hall south wing (including Neuro’s), balcony and roof terrace

Easterbrook Hall is once again regarded as the Premier Conference, Events and Wedding Venue for

the South West of Scotland however it can be much more. The Trust has recently updated the

facilities to develop and protect the above core business activities of Easterbrook Hall but in so doing

has also identified significant growth opportunities as well including being used as an approved

receiving house for bands. This combine with the increased capacity for events up to 1100 in the

main hall alone when you include the seated balcony area means it is now a viable venue to attract

mainstream entertainment to Dumfries.

The development of Neuro’s in the south wing of Easterbrook Hall will provide much needed social

and student amenities at the Crichton Estate which will derive many benefits for the community at

large not least of which making the Crichton Estate a destination for public and tourists alike.

Furthermore the increased amenities will allow the education stakeholders to attract more out of

region and international students to the Crichton Campus through the provision of world class

amenities.

The addition of the Balcony to the capacity of the main hall has also brought the roof space into play

as a potential social space to provide a roof top terrace bar. The proposed drawings for these

significant projects are attached in Appendix 4.

43. It is key to remember that the business case for this development is not purely commercial –

it is delivering a much needed social facility to benefit all those based at the Crichton and also to

attract the public to the Crichton as a place to spend time with family and friends.

44. Recent discussions with the local Fire Officer have also identified opportunities to re-use the

balcony in the Main Hall with an additional escape route across the roof, exiting to the rear of

Easterbrook North Wing, and opening up a further very exciting opportunity for additional growth of

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the Trust’s hospitality offering at the Crichton. It is planned to develop part of the North Wing roof

space adjacent to the main hall balcony as a roof top terrace bar for up to 60 people. It is believed

that this could be achieved relatively cheaply and warrants further investigation. Subject to a full

feasibility costing this is another potential contributor to future profitable growth and would be a

great attraction to Crichton users and members of the public particularly during the summer

months. A schematic bubble diagram is attached in Appendix 4

New Learning Spaces

45. From recent discussions with the various stakeholders on the Crichton Estate as well as the

Scottish Funding Council it has been determined that there is a need for new build learning spaces at

the Crichton Estate for possibly up to 7000 m2 of modern learning space. This is principally being

driven by the University of the West of Scotland and SRUC’s proposed plans to relocate operations

from the Barony to the Crichton subject to completion of their formal options appraisal.

46. This is still at the requirements stage with the Crichton Trust’s Master Planning exercise

helping to refine stakeholder requirements. Once these are clearly understood the next phase will

be to look at the design and build costs and associated financial models available. It is expected that

these requirements will be well understood no later than the end of 2015 with an expected delivery

date of 2017/18.

Student accommodation

47. As part of The Trusts current master planning exercise for the Crichton Estate we have been

in consultation with all the Education Stakeholders on the estate and this has confirmed the need for

the building of a substantial number of high quality student residences in the region of 400-500

seems to be a likely number.

48. As part of the research into the best ways in which this can be achieved the Trust has been

conducting research across the UK in relation to design and finance models. It would appear that a

PFI approach is the most likely and affordable option. In a recent visit to Kings College London it was

reassuring to see the quality and style of build that can be achieved on a very cost effective basis

National Centre for Resilience

49. In August 2014 the Scottish Government announced that the NCR would be located in

Dumfries at the Crichton estate ahead of the referendum. The initial requirement is to host a

maximum of two full time members of staff who will be coordinators of the Centre’s activities in

relation to Research and facilitation of projects on a local, regional and international basis.

50. The Trust is directly engaged with the project lead and have proposed that the finding be

channelled through the Trust to facilitate the maximum return on investment by using shared

resources and brokering partnerships with various academic institutions such as Strathclyde

University and Heriot Watt University and other local stakeholders such as the Crichton Carbon

Centre and Crichton Institute.

51. The Trust see the NCR coming to Dumfries as a significant opportunity for the region to

become directly involved in meaningful research in the areas of Climate and Environmental change

as well as emergency responders.

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FUTURE OPPORTUNITIES

On the Crichton Estate - Strathclyde University

52. In discussions with the Principal and Vice Chancellor of Strathclyde University there is the

opportunity to work with the UoS in developing a Research and Innovation facility in Dumfries.

Interestingly this links to a number of exciting opportunities for the Trust to work with UoS.

53. The Trust and the NHS have instructed the UoS to undertake an options appraisal for the

water supply on the Crichton Estate. This is looking at the various scenarios if the NHS remain in

Crichton Hall long term, transfer Crichton Hall and Nithbank to the Trust and or relocate from the

Hospice building in the next few years. All options are being considered and the costs associated

with the alternatives assessed.

Elsewhere

54. The highly productive engagement with stakeholders on and around the Crichton estate has

raised issues about the wider role of the Crichton Trust with regard to property beyond its

boundaries. As the original concept for the Crichton Trust (and the Crichton Development

Company) was not limited to the Crichton estate but was deliberately framed in the Memorandums

and Articles of Association to permit regeneration activity across the region, discussions have

progressed with regard to significant property development opportunities adjacent to the Crichton

estate with a view to determining the viability of the projects and of the adaptation of the Trust

constitution and resources for the purpose. The properties concerned include the following.

Crichton Hall

55. As part of recent discussions with the NHS the Trust have been exploring the possibility of

taking Crichton Hall along with Nithbank into the Trust portfolio for redevelopment.

56. Discussions are at a fairly early stage but the proposal would be to turn the property into a 4

or possibly 5 star 300 Bed Spa Hotel with adjacent golf course and associated amenities. This would

be a truly transformational development not just for Dumfries but the regional as a whole. A

potential North American partner has already been identified by the Trust and if negotiations are

successful will potential bring an investment in the region of £60 Million to Dumfries.

57. Plans of such scale will obviously take some time to come to fruition but the fact that

discussions are underway between the various interested parties means that there is a realistic

prospect that agreement could be reached to coincide with the planned move to the new hospital

albeit new administrative offices would have to be secured.

58. Upon completion of the feasibility study by the end of July 2015 we will then enter into

more detailed discussions with the NHS directly.

Nithbank

59. As part of the discussions relating to Crichton Hall the NHS have indicated that they would

prefer the Trust to consider acquiring Nithbank at the same time, as they are both listed buildings

that are very costly to maintain. The detail of any such asset transfer has yet to be agreed but an

absolute prerequisite is that firm development plans are funded and agreed prior to the NHS moving

out of the properties. The proposed use for Nithbank is student residences and flat accommodation

albeit subject to the outcome of a current feasibility study.

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BRANDING AND MARKETING – THE CRICHTON BRAND

Crichton Estate and Campus

60. The Trust and CDC are working with a specialist web developer Dunston Graphics to deliver

a fit for purpose website that is the start of an overall refresh of the Estate and what it can deliver.

The Trust intend to appoint a PR and Marketing Agency to further define and develop a campaign to

promote the unique assets that the Dumfries and Galloway has to offer with the Crichton Estate at

its heart.

Easterbrook Hall

61. The Easterbrook Hall team are proactively engaging with identified institutions and

associations to strengthen and increase all regional events be they Tourism, Marathon, Cycling

events etc.; this will maximise commercial opportunities on the estate but also across the region.

62. An excellent example of this outreach is working with the Queen of the South Football Club

to secure a Ball schedules for August, the Ball will not only strengthen the links to a broader

audience in the town but also provide direct benefit to a local charity and initiatives.

PROJECTED COSTS AND MAJOR PROJECT FUNDING

63. The abbreviated projections for the next 12 months and subsequent 2 years are shown

below.

64. There has been a substantial turnaround in the finances of the various business units for the

Trust and CDC over the past 12 months and the future projections show that the trend of increased

overall profitability and sustainability are expected to increase over the next 12- 36 months in line

with the projections below.

65. The Trust have changed how it monitors the business at departmental level and is better

able to manage the overall business through focusing on key performance indicators

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66. The figures in Table 1 below are the fully consolidated position between the Trust and CDC

and show a steady growth plan over the next three years with revenues exceeding £3 Million for the

first time.

Table 1

Consolidated View CT/CDC

2015/16 2016/17 2017/18

Rental income

1,197,888

1,198,267

1,198,658

Services income

456,746

474,583

484,569

1,654,634

1,672,850

1,683,227

Other income

116,708

118,089

119,512

1,771,342

1,790,939

1,802,739

Overheads

1,534,523

1,553,584

1,573,209

Total income, less overheads

236,819

237,355

229,530

Depreciation

133,686

131,258

132,758

Deferred grants released

59,871

59,871

59,871

Operating profit

163,004

165,968

156,643

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The figures in Table 2 below show the Trust and CDC Rental income and Utilities figures and which

have been prepared on a very conservative basis. There are a number of parties who have expressed

an interest in taking offices that are not included in the numbers below including the whole of Kindar

House which could be a further £200k + per annum from the end of 2015.Project Management and

Current Projects

Table 2

Major project - Easterbrook South Wing – “Neuro’s“

The figures in Table 3 below relate to the South Wing redevelopment of the old Hydrotherapy suite.

These are the operation costs from a departmental P&L perspective – the Capex for the project is

£659,000. We also have shown figures in Table 4 for the Crypt Development, which has a Capex of

£150,000.

A conservative approach has been taken in the preparation of these numbers which assume

minimum expected uptake in relation to memberships, covers in restaurant and Spa utilisation.

15

Table 3

Development of the Crichton Memorial Church Crypt

16

KEY DELIVERABLES

Table 5. Below shows the key projects that the Trust is currently engaged in and the anticipated

dates for delivery of the projects. Progress against these key deliverables will form the basis of our

quarterly reviews with the Crichton Trust Board and 6 monthly with the Crichton Sub Committee of

Dumfries and Galloway Council.

Table 5

Project Description Delivery By

1. Delivery of the Crichton Master Plan End of June 2015

2. Completion of Neuro’s South Wing Development at Easterbrook Hall

First week in September 2015

3. Memorial Church Crypt / Visitor Centre Development

December 2015

4. Let’s Get Sporty Social enterprise move to the Crichton Estate

Delivering Activities in July 2015 – located at the Crichton by Spring 2016

5. Crichton Water Infrastructure Project – in partnership with the NHS

Phase 1 Options Appraisal due End of August 2015

6. Student Residences on the Crichton Estate – financial models and options appraisal study completed

End October 2015

7. Secure hospitality international brand partnership (Interbev)

Spring 2016

8. New Crichton Website go live End of June 2016

9 Real Estate proactive campaign with Rightmove Commercial to promote Crichton Nationally and Internationally

End of September 2015

CONCLUSION

After such a period of immense change the Crichton Trust has a very positive outlook on its future

and its ability to effect positive change that will benefit the local, regional and national economy as a

whole. The Trust is uniquely placed to deliver the projects and vision outlined in this Business Plan

and looks forward to working with all the appropriate stakeholders to realise the goals and

ambitions they believe to be key to the future success of the Region’s economy.

17

Appendix

Neuros – South Wing Key Targets

EASTERBROOK HALL - KEY TARGETS

Year 1 - from 1st September 2015 Year 2 - from 1st September 2016 Year 3 - from 1st September 2017

- Numbers Monthly Annual - Numbers Monthly Annual - Numbers Monthly Annual

(each month) charge income (each month) charge income (each month) charge income

(gross) (net of VAT) (gross) (net of VAT) (gross) (net of VAT)

Membership

- Student access 200 6.00£ 12,000£ 230 6.00£ 13,800£ 265 6.00£ 15,870£

- D&G College 30 10.00£ 3,000£ 35 10.00£ 3,450£ 40 10.00£ 3,968£

- D&G Council 30 10.00£ 3,000£ 35 10.00£ 3,450£ 40 10.00£ 3,968£

- University of Glasgow 30 10.00£ 3,000£ 35 10.00£ 3,450£ 40 10.00£ 3,968£

- University of West of Scotland 30 10.00£ 3,000£ 35 10.00£ 3,450£ 40 10.00£ 3,968£

- Holiday Inn 10 Annual fee 4,167£ 12 Annual fee 4,792£ 13 Annual fee 5,511£

- NHS 30 15.00£ 4,500£ 35 15.00£ 5,175£ 40 15.00£ 5,951£

- Tenants 30 15.00£ 4,500£ 35 15.00£ 5,175£ 40 15.00£ 5,951£

- Community 0 -£ -£ 0 -£ -£ 0 -£ -£

Total income (net of VAT) 37,167£ 42,742£ 49,153£

Annual Annual Annual

Charge income Charge income Charge income

(gross) (net of VAT) (gross) (net of VAT) (gross) (net of VAT)

Treatments

- Therapy Room - hire (x2) 20.00£ 8,000£ 20.00£ 9,200£ 20.00£ 10,580£

- Therapy Room - commission (x2) 5.00£ 2,000£ 5.00£ 2,300£ 5.00£ 2,645£

- Physio/sports massage (x1) 20.00£ 2,400£ 20.00£ 2,760£ 20.00£ 3,174£

- Physio/sports massage -

commission (x1) 5.00£ 600£ 5.00£ 690£ 5.00£ 794£

Total income (net of VAT) 13,000£ 14,950£ 17,193£

- Covers Average Annual - Covers Average Annual - Covers Average Annual

(each month) Spend income (each month) Spend income (each month) Spend income

(gross) (net of VAT) (gross) (net of VAT) (gross) (net of VAT)

Bistro

- Breakfast covers 480 5.00£ 24,000£ 552 5.00£ 27,600£ 635 5.00£ 31,740£

- Lunch covers 480 8.00£ 38,400£ 552 8.00£ 44,160£ 635 8.00£ 50,784£

- Lunch covers (takeaway) Per week 2,100.00£ 91,000£ Per week 2,415.00£ 125,580£ Per week 2,314.38£ 120,348£

- Evening covers 440 5.00£ 22,000£ 506 5.00£ 25,300£ 582 5.00£ 29,095£

- Corporate catering Per month 215.00£ 2,150£ Per month 247.25£ 2,473£ Per month 284.34£ 2,843£

Total income (net of VAT) 177,550£ 225,113£ 234,810£

- Covers Average Annual - Covers Average Annual - Covers Average Annual

(each month) Spend income (each month) Spend income (each month) Spend income

(gross) (net of VAT) (gross) (net of VAT) (gross) (net of VAT)

Restaurant

- Lunch covers 480 9.00£ 43,200£ 552 9.00£ 49,680£ 635 9.00£ 57,132£

- Evening covers 480 35.00£ 168,000£ 552 35.00£ 193,200£ 635 35.00£ 222,180£

- Private hire 1,000£ 1,150£ 1,322£

- Themed evenings - students 1,000£ 1,150£ 1,323£

- Themed evenings - staff 2,000£ 2,300£ 2,645£

Total income (net of VAT) 215,200£ 247,480£ 284,602£

Total income (net of VAT) 442,917£ 530,285£ 585,757£