Perth-based transport tycoon Ann Gloag is involved in a £6.3 million deal to turn a former Edinburgh city centre office block into serviced apartments.
Gloag Investments, of which she is a director, has formed a joint venture with Valad Europe to develop an aparthotel at Kintore House in Queen Street.
The vacant offices formerly occupied by energy industry analysts Wood Mackenzie were purchased from Lonestar and Hudson for £6.3 million by Gloag Serviced Apartments Limited.
Valad Europe is part of the Cromwell Property Group, a global real estate investment manager.
The aparthotel will be operated by BridgeStreet Global Hospitality, a leading international provider of serviced apartments, under its Mode brand.
The aparthotel will be the third of its kind to open globally, after Washington and Paris, and comprise 82 apartments over four floors.
Ann Gloag stated: “We are delighted to be bringing Bridgestreet to the capital in what will be their first bespoke building in Scotland.
“We are also looking forward to playing our part in helping to refurbish Kintore House and regenerate what until now has been a relatively unloved corner on one of the New Town’s finest streets”.
Simon Marriott, head of investments and UK real estate at Valad Europe, said: “The purchase….represents a superb opportunity to benefit from the ongoing strength of Scotland’s capital and the ability to generate attractive ongoing income and value once the refurbishment is complete.
“As part of its global roll-out of the Mode brand, Bridgestreet is identifying quality buildings in key gateway cities to convert them into stylish apartment style accommodation.”
Andy Richardson, head of UK development at Valad Europe, said: “The proposal to regenerate this derelict and functionally obsolete building will generate significant activity in the West End of Queen Street and will complement and support the commercial businesses located in Edinburgh City Centre.”
A planning application was submitted in November with site works due to start in March 2017.
BridgeStreet chief executive Sean Worker said: “Where we operate we aspire to be part of the community, work with local businesses and recommend the best establishments.
“Each Mode building will offer a bespoke, unparalleled experience to our guests by providing them with high design and comfort.
“This includes knowing the unique feel of Mode is backed by the world-class brand of BridgeStreet Global Hospitality to ensure consistent service standards.”
