INTERSERVE has entered into a joint venture with a landowner to take forward the £200m development of a prime site in Edinburgh. It will initially invest £10.5m in the project and the construction contract is for £150m.
The scheme, next to Haymarket Station, will be a mix of office, hotel and retail space. The site has full planning consent with tenants including Tesco and a serviced apartments provider already signed up for the initial development phase. Food chains have committed to the second phase and discussions are progressing with other potential occupiers.
Adrian Ringrose, CEO of Interserve, said: “Edinburgh’s Haymarket site remains one of the best city centre development schemes to be found anywhere in the UK. It will provide a strategic gateway for the city centre, linking seamlessly with one of Scotland’s busiest railway stations as well as being adjacent to the city’s new tram network.
“The proposals for a mix of leisure, retail and office space, linked by open public spaces, will act as a catalyst to regenerate the commercial heart of the area as well as create jobs. Our involvement and financial commitment to this project underlines Interserve’s ability in creating value by structuring asset-based funding in combination with the design and delivery of large scale projects.”
Simon Fox, development director of land owner Tiger Developments, added: “Throughout the planning process we have worked hard to develop our proposals in line with the needs of the city and the local community. Our team has devoted a significant amount of time and energy so far in designing a scheme which now represents the best solution for this challenging site.
“So far we have received significant commercial interest in the site from a wide range of UK operators, on top of the existing tenants already signed up. We are now looking forward to working closely with our development partners Interserve to finally give the Haymarket area the high quality of mixed-use development which it so richly deserves, providing a critical balance to the overall development of Edinburgh’s city centre.”
Detailed planning approval was granted in March 2011 when the scheme won praise from planners for the quality of the design. Proposals include four office buildings and a mix of retail, food and leisure developments.
The project will be built by Interserve’s Livingston construction team. Around 250 people will work on the project, either employed directly by the company or by its supply chain and specialist sub-contractors.
Image – Interserve said it is investing an initial £10.5m in the scheme.