PROPERTY

One of Edinburgh’s most prominent gap sites, which has been dogged by delays, has been bought by a property investment group in a £49.1 million deal. M&G Real Estate has acquired The Haymarket, a four-acre development site next to Haymarket station, which is earmarked for three Grade A office buildings, retail and leisure space, a 190-room hotel and a 172-room aparthotel.

M&G said the site, which has a total development value of around £280m, provides an opportunity to expand Edinburgh’s growing Exchange District financial quarter.

The deal is the latest for M&G in Scotland following a transaction to fund the construction of Quartermile 3 and Quartermile 4 and the announcement of plans to provide a £100m workplace at The Grid in Glasgow.

M&G said its acquisition of The Haymarket comes at a time when the supply of office accommodationinedinburgh is at its lowest for more than ten years, a situation it said was unlikely to improve due

0 The Haymarket is one of Edinburgh’s most prominent gap sites

CHRIS PERKINS, M&G to limited new supply in the pipeline.

Chris Perkins, the firm’s head of business space, said: “With the current supply and demand dynamics, bringing 350,000 sq ft 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.

“As a provider of investment solutions across geographies, sectors and product types, this investment reinforces our strategy of acquiring assets with potential for sustained income, strong capital appreciation located in targeted growth zones.”

News that the site had been put up for sale by support services firm Interserve’s joint venture with Ireland’s Tiger Developments emerged in February.

Dougie Sutherland, executive director at Interserve, said: “The sale follows a strategic

“Edinburgh’s rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities”