£200m scheme will be catalyst for regeneration
In a joint venture with current landowner Tiger Developments (“Tiger”), Interserve will progress the £200 million development, which will bring together a mix of high quality office, hotel and retail space with the potential to create 3,500 jobs.
Interserve will initially invest £10.5m in the project and the construction contract is for £150 million.
The site already has full planning consent, with tenants already signed up for the initial development phase - including Tesco and serviced apartments provider Staycity. Food chains Prezzo and Pret A Manger are already committed to the second phase, together with advanced discussions with other occupiers for a further 70,000 sq ft of retail and office space.
Strategic gateway to the city centre
Welcoming the launch of the new joint venture, 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.”
Tiger will partner with Interserve in managing the marketing and development of the Haymarket site, building on significant interest already received in the scheme so far.
Best solution for a challenging site
Simon Fox, Development Director with Tiger, said: “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.”
Chris Dougray, Head of our Edinburgh office, said: “The Haymarket is a very exciting development opportunity- not only for the partners involved but for the city as a whole. This is a trophy deal and instruction for Lambert Smith Hampton.”
Architectural design praised by business leaders
Detailed planning approval was granted in March 2011 following an extensive consultation programme with the local community, with the scheme gaining backing from the city’s business leaders as well as praise by planners for the high quality of its architectural design.
Proposals include four contemporary office buildings offering around 400,000 sq ft of space designed to meet the fast-growing demand in Edinburgh for high-quality city centre space capable of accommodating large-scale occupiers on single floors. There will also be a mix of retail, food and leisure developments – including retail units and a food store as well as bars, cafes and restaurants.
The city's new business and transport hub
The new Edinburgh tram system, which is due for completion later this year, runs adjacent to the site and Haymarket railway station, further cementing the location as a principle business and transport hub for the city.
The plans highlight the open and accessible public space, creating a mix of continental style boulevards and pedestrian-friendly public areas. The scheme has been designed to create an easily accessible ‘walk-through’ layout from different directions, emphasising its strategically important location, connecting the city centre to the capital’s second busiest railway station and new tram network - as well as to Edinburgh International Conference Centre and the new exhibition centre.
The project will be delivered by Interserve’s local construction team, based in Livingston. Around 250 Interserve employees will work on the project – employed either directly by the company, or by its local supply chain and specialist sub-contractors.
Further information on the site is available at www.thehaymarketedinburgh.com.