Knight Frank facilitates landmark £350 million investment in Scotland’s green energy sector

We advised Japanese multinational corporation, Sumitomo Electric Industries (SEI), on the lease acquisition of 15-hectare (c.37 acre) site adjacent to Port of Nigg, within the Inverness and Cromarty Firth Green Freeport.
 
SEI’s £350 million investment will see construction of a 57,500 sqm subsea high voltage transmission cable manufacturing plant in the Scottish Highlands, due to open in 2026. The Scottish Government has provided c.£24.5M in public sector funding towards this.

Boost to Scotland’s green energy sector

This landmark transaction signifies a substantial boost to the UK and Scotland’s green energy with the factory set to supply critical elements for the reinforcement of the UK electricity transmission grid and connecting renewable energy production facilities.  

Knight Frank’s role in advising SEI 

Our SMTB European Desk, Scotland Industrial team, and Global Occupier Strategy and Solutions provided SEI with a full-service advisory offer.

Edward Fairweather, Partner, London Capital Markets & 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.”

Delivering long-term sustainable growth

Sarah Beattie, Global Head of Corporate ESG Strategy at Knight Frank: “This sophisticated deal is a fantastic example of Knight Frank’s clear ambition to shape the real estate industry and build a sustainable future, working in partnership with others. We look forward to continued involvement on this and other projects which align with our ESG strategy and foster a sustainable environment for all.”

Scott Hogan, Head of Scotland Logistics & Industrial at Knight Frank added: “We are delighted to have acted for SEI in this lease acquisition. We understand this to be 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 of this year. In attendance were Màiri McAllan, Scottish Cabinet Secretary for Net Zero and Energy, Justin Tomlinson, Energy Security and Net Zero Minister, Stuart Black, CEO of Highlands and Islands Enterprise and Adrian Gillespie, CEO of Scottish Enterprise.

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