Octopus Property has agreed to provide MCR Property Group with a €22.5m (£20m) development loan to convert Chesser House office building in a prime Edinburgh location into 163 apartments. The planning consent has already been secured. The project will comprise 123 one, two and three-bed private apartments for sale, alongside 40 affordable units and a commercial premise. Once complete the development will be renamed Elfin Square.
The Edinburgh housing market continues to perform favourably, with 10% annual house price inflation significantly above the UK average and strong liquidity underpinned by a shortage of stock. Demonstrating the demand for well-located property in the city, 63 of the units have already been reserved and the sale of the affordable units has been agreed with a local housing authority.
Located on Gorgie Road in the sought after Chesser suburb, 1.5 miles from the City Centre, the site benefits from its close proximity to both the Bal Gram tram station, which connects to Princes Street and Edinburgh airport and the Edinburgh ring road.
Gavin Eustace, Head of Residential Development at Octopus Property, commented: “This is an exciting project to be involved with, in what is one of Europe’s most dynamic and strong performing cities. We are particularly comfortable working alongside a developer with a track record of delivering high-quality schemes across the UK and hope this is the start of a long and mutually beneficial relationship.”
The private apartments have been renamed ‘Embankment West’ and will be sold by MCR Property Group’s residential sales arm, Regency Residential.
Chris Taylor, Managing Director of Regency Residential, said: “Edinburgh’s population exceeds half a million and is growing, but there continues to be a major issue with undersupply of quality homes. Considering the city’s documented potential, developing residential space is absolutely key.”