Edinburgh office sold for £15m

A £15 million deal has been struck to sell a major office block in Edinburgh providing detailed planning permission is obtained to convert it into a mixed-used development of student and residential accommodation.

Caledonian Trust, the Edinburgh-based property investment holding and development company, said it had entered into an agreement to sell St Margaret’s House near Meadowbank Stadium to Drum Property Group.

The existing multi-storey office building extends to 92,000 square feet and is currently fully let out with the main tenants being the Registrars of Scotland and charity Edinburgh Palette.

Under the terms of the missives entered into by Caledonian Trust and Drum, completion of the disposal is conditional on the latter obtaining the green light for a mixedused development of student and residential accommodation. That process is likely to take up to 18 months.

Douglas Lowe, chairman and chief executive of Caledonian Trust, said: “The development is in a prime location in Edinburgh for student accommodation and affordable housing. Having owned St Margaret’s since 1988 we are pleased that Drum Property, with their expertise and resources, will become the new owners of the St Margaret’s site once the proposed disposal has completed.

“The net cash proceeds from the proposed disposal will, when received on completion, significantly strengthen the group’s balance sheet and provide funding to enable the company to accelerate the group’s existing property development programme.” l Unite Students Accommodation Fund has acquired a student flats site in Fountainbridge in Edinburgh for £24m.