Completion of £3.5m creative industries studio complex will contribute £69 million to Scottish economy

Creative industries studio complex will contribute £69m

A groundbreaking studio complex for artists and creative businesses, newly completed in Glasgow’s Merchant City, is predicted to contribute £69 million to the local economy. The £3.5 million regeneration of South Block, a former textiles warehouse, has been carried out by Wasps Studios, a Scottish social enterprise and charity. It provides an exciting mix of low-cost studio space for fine artists and craftspeople, plus offices for social enterprises.

High-quality office space is also available for commercial businesses from Scotland’s vibrant creative industries.

Despite the difficulties facing the commercial property sector, South Block has already secured tenants for around 70 of the available 96 workspaces.

The first of the amazing array of artists who are taking studio space in the four-floor Edwardian building – including painters, sculptors and jewellers – have moved in and started work. Tenancy agreements have also been signed with commercial companies and charities.

David Cook, Wasps Studios CEO, said: “The South Block regeneration is creating a vibrant new space for artists, creative businesses and social enterprises which will help build the local economy. I believe the project is a major success story for Glasgow and Scotland – allowing us to make the most of the country’s immense creative and artistic talent. Many spaces have already been taken and we are finding an incredible amount of enthusiasm among other potential tenants. This is a fresh and exciting environment – offering creative practitioners exactly the space and facilities they need to thrive.

“By creating low-cost studios for artists and charities, and mixing them in with superb office space for established business from the creative sector, we are bringing jobs, income and investment to the Merchant City. South Block builds on the tremendous success to date of efforts to revive the fortunes of a part of the City Centre that has suffered many years of economic deprivation.”

The South Block project is highly unusual because the money raised by renting space to commercial businesses is used by Wasps to reduce the rents for artists and social enterprises to around half the market rate. This can make all the difference to arts and crafts practitioners who would otherwise be unable to afford the spaces they need.

Mr Cook said: “Scotland’s economy is changing fast, and the cultural and creative industries play an ever-more important role in providing jobs, generating income, attracting tourists and building our international reputation.

South Block, the Merchant City, and Glasgow, are at the very heart of the drive to build a creative economy.

“Many artists and craftspeople work on their own, or in small groups, and do not generate the kind of profits needed to pay commercial rents. Wasps offers essential support through low-cost studios.

This can make it easier for them to focus solely on creating their artwork, building their careers and earning commissions or making sales. It also brings economic benefits to the areas where they are concentrated – not least because it acts as a magnet for art buyers and for other creative businesses.”

An economic impact study commissioned by Scottish Enterprise suggested that South Block is likely to generate £69 million for the economy over the next 20 years.

Allan McQuade, Director of Business Infrastructure at Scottish Enterprise, said: “By investing in South Block we are helping to provide superb opportunities for businesses to develop and grow, and creating a showcase for Scottish talent. This new complex will not only generate many millions of pounds for the Scottish economy, but will hopefully attract more businesses to the Merchant City.”

South Block is a further project of 53 (‘Five Cubed’), which began in 2007, to develop 5 new arts buildings in 5 communities in 5 years with £2.5m National Lottery investment from Creative Scotland.

Once the building is fully let it will provide workplaces for around 200 people. The income it raises will also bring a radical transformation in Wasps by making its day-to-day work 100% self-funding. The social enterprise and charity, with a turnover of around £1.3 million, receives 10% of its revenue funding through grants from other bodies. By becoming self-sufficient it will no longer need this support, allowing grant-making bodies to allocate funds to other good causes.

Capital funding, and other support, for the South Block initiative came from a variety of organisations which saw the advantage in helping to set up a project which would then fund itself.

The backers include Creative Scotland, Scottish Enterprise, The Scottish Investment Fund, The EU’s European Regional Development Fund (ERDF), Glasgow City Council, Glasgow City Heritage Trust and The Merchant City Initiative.

Wasps also raised finance through Triodos Bank, which specialises in ethical investment.

Mr Cook continued: “The Wasps model of becoming self-funding is an innovative one, especially in the cultural sector, which we believe other social enterprises and charities will follow. With increasing competition for limited grants and funding, we are showing that a new way forward is possible. Using capital funding to get self-supporting projects up and running is a very effective way to invest in the future.”

Wasps Studios is planning further developments in Scotland in the years ahead. Even with the South Block development, the organisation - which has 19 buildings from Shetland in the north to Kirkcudbright in the south west - has a two-year waiting list for artists’ studios.

Open days have been held at South Block for businesses and social enterprises in the arts and creative sector to view the remaining spaces.

And enquiries regarding office or commercial workshop space availability should be directed to Wasps Artists’ Studios Property Asset Manager Alan Simpson (tel: 0141 553 5890 or email: southblock@waspsstudios.org.uk ).