The Caltongate development for the Edinburgh’s Historic Old Town has been approved by councillors following an 18-month consultation period. Global property advisers, Colliers International, advised Artisan Real Estate Investors, the international development consortium behind the development. Work could start as soon as mid-2014.Centred around a new £6.5 million civic square, Artisan’s new development will create around 16,500 sq. metres of high quality grade A office space and 28 new retail businesses, as well as the hotel and leisure space. There are also plans for a new community facility, together with 145 residential units and 40 affordable homes. The scheme links the capital’s New Street/East Market Street area and Waverley Station with the historic Royal Mile.
A deal was agreed in December to bring two Whitbread hotels to the five-acre site, including a 128-room Premier Inn and a 130-room Hub by Premier Inn, Whitbread’s innovative new ‘compact’ hotel format which will be the first of its kind outside of London.
The economic benefit of this new development is estimated to bring in £43m to the local economy each year, as well as creating almost 2,000 jobs.
Marc Finney, Head of Hotels International at Colliers International, who advised Artisan on the project and secured the hotel deal with Whitbread PLC, said, “The levels of interest in this scheme from across the spectrum of hotel and apart-hotel operators, both nationally and internationally, highlighted the tremendous value this development will bring to Edinburgh and the high-profile transformation for the Caltongate area.”
Lukas Nakos, Artisan’s managing director said: “This has been an exceptional planning approval for an exceptional development. Today marks a significant milestone in the evolution of one of the most challenging city centre developments anywhere in the UK, and we now have the opportunity to deliver on our promises made when we first started this process, more than two years ago.
“Our proposals are the result of an 18-month consultation process bringing together local people, businesses, civic partners and heritage bodies. This has led to many facets of the area’s unique Old Town setting being retained to preserve the character of the development, including the retention of the Canongate Venture building and the façade of the Old Sailor’s Ark.”
He added: “Artisan will now bring international capital investment of £150 million to the table, coupled with the vision and commitment needed to complete what has already been started. We now have the opportunity to create, in the very heart of Edinburgh, one of Europe’s most exciting and vibrant mixed-use communities which will set an international benchmark for sensitive and innovative development.”
