Modern extension is part of Customs House hotel plan
Work on a £9 million project to transform a historic Dundee building into a landmark hotel could start before the end of the year, developers say.

An artist's impression showing how the extension would sit with the current building.
- By Stefan Morkis
- Published in the Courier : 24.02.11
- Published online : 24.02.11 @ 12.52pm
The Unicorn Property Group wants to turn Customs House into a 104-bedroom boutique hotel. Between 34 and 38 of them will be in the existing building while a modern extension designed to "float" about the former port authority's headquarters will be created on its south side. The company says the extension is necessary to make project financially viable.
Although public consultation on the plans only opened on Wednesday, company director Tim Allan said it is likely investors will want to complete work on the existing building by April next year because a tax allowance scheme created to help regenerate old buildings ends next year. Work on the modern extension can be completed at a later date, although is likely to start concurrently.
Historic Scotland has demanded the extension be clearly distinguishable from the existing building so the curved structure will be built on a steel frame, stand on stilts and have zinc cladding. A courtyard will be situated between the old and new parts of the hotel, should plans be approved.
Unicorn Property Group, which owns Customs House, has drawn up the plans for the conversion in conjunction with Historic Scotland because it is an A-listed building. A hotel chain is already interested in managing the hotel but Unicorn intends to sell the building to a consortium of investors rather than run it itself.
Mr Allan said that, although a planning application has not yet been submitted to Dundee City Council, he expects work to begin quickly should it be granted.
"One of the things that makes Customs House so interesting is that it benefits from BPRA (business premises rates allowance), introduced by the last Labour government for five years and comes to an end next year. It is so important to places like this, which are important in employing people.
"Work in the old buildings will need to be done by April 2012, so we will need to be clearing the site and working on the old building in summer and winter."
He said the coalition government should extend the BPRA scheme to help push regeneration in places like Dundee.
"It is something the Scottish Government should be calling for," he said.
Continued...

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