Evans Randall has agreed formal heads of terms with Edinburgh Haymarket Developments Limited (EHDL), a joint-venture between Interserve and Tiger Developments, to forward fund the first phase of the £200 mln (approx. €244.7 mln) Haymarket development in Edinburgh.
The £100 mln (approx. €122.36 mln) first development phase will deliver two hotels and an underground car park alongside 90,000 ft² of grade A offices that will be developed speculatively - together with 30,000 ft² of retail already partly pre-let.
Pre-lets are in place with a number of occupiers including Tesco, Prezzo, Pret a Manger and Qpark and further lettings are in solicitors’ hands. The remaining 300,000 ft² (approx. 27,870 m²) of commercial space will be developed under future phases.
A spokesperson for Evans Randall said: “Evans Randall welcomes the opportunity to invest in this high quality regional asset at a time of increasing occupier and investor demand in Edinburgh and looks forward to working alongside the strong delivery team at EHDL.”
“The development’s prominence, critical mass, excellent connectivity and mixed-use nature will create a vibrant new destination that is popular with occupiers. “
A spokesperson for EHDL said: “This deal demonstrates the rationale for our investment in the scheme. Not only have we been able to secure long-term occupational interest from established operators, but we have also capitalised on the increasing appetite for the best located assets in regional cities.
“This deal is consistent with our desire to create value, de-risk projects and provide a critical mass of development to encourage further occupational interest in the remaining phases of development.”
Evans Randall is being advised by BNP Paribas.
The Haymarket is a master-planned, mixed-use development adjacent to the Edinburgh city centre, comprising office, leisure/hotel and retail space, plus underground car parking. The development is a natural extension of Edinburgh’s Exchange district, located between the existing city centre and the Haymarket transport hub.
Source: Evans Randall