Delay-hit Haymarket gap site sold for Â£49 million
A DEVELOPMENT firm intends to press ahead with building a Â£200 million office and hotel block on a prominent Haymarket gap site after buying the property for almost Â£50 million.
M&G Real Estate yesterday announced they had purchased the former goods yard next to Haymarket Station.
The four-acre mixed used development site on Morrison Street was sold for £49.1m.
The planned overhaul of the property has been plagued by recent delays, prompting former owners Interserve to put the site on the market in February.
The Haymarket development would include office buildings totalling 350,000sqft.
Approval has also been granted for a 190-room hotel and a separate 172-room aparthotel. Cafes, bars and restaurants are part of the project.
The Evening News understands M&G intends to follow through with the major hotel and office development and are likely to set an aggressive timeline to finish the project.
The appointment of a developer partner looms as the first step for the new owners.
Minor design changes to the planned project have not been ruled out.
A timeline for construction works and an expected start date are yet to be announced.
Interserve had been working alongside Irish firm Tiger on building the development at the heart of Edinburgh’s financial and commercial centre since 2013.
The former owners had been forced to push back the start date for construction works from the spring of last year to 2018 after railway tunnels running under the site needed to be strengthened in an unforeseen delay.
M&G head of business space Chris Perkins said: “With the current supply/demand dynamics, bringing 350,000sqft to the market will reinforce the Exchange District as a prime hub for business in Europe.
“Whilst Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities.”
M&G already boasts the construction of Quartermile 3 and Quartermile 4 in Edinburgh amongst its portfolio of Scottish work.
Interserve executive director Dougie Sutherland said: “The sale follows a strategic review of the project and is part of our overall transformation plan, allowing us to realise our investment at a time that is right for both the development and the market.”
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