Contractor forms joint venture with developer Tiger on mixed-use Haymarket project
Interserve has formed a joint venture with Tiger Developments to invest in and construct a £200m mixed-use development in the Haymarket area of Edinburgh.
The joint venture company will deliver a scheme incorporating commercial offices, retail units, leisure use, hotel accommodation and underground parking.
Interserve will initially invest £10.5m in the project with the follow-on construction works to a value of £150m being undertaken by Interserve.
The site has full planning, with tenants signed up including Tesco and serviced apartments provider Staycity. Food chains Prezzo and Pret A Manger are committed to the second phase, while advanced discussions are taking place with other occupiers for a further 70,000 sq ft of retail and office space.
Adrian Ringrose, chief executive officer of Interserve, said: “Edinburgh’s Haymarket site remains one of the best city centre developments 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.”
Simon Fox, development director at 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 have 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.”