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New hotel development in Edinburgh’s Old Town

A new hotel development in Edinburgh’s Old Town has been placed on the market with an £8m price tag.

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The Canongate will sit in a redeveloped Grade C-listed Victorian schoolhouse, comprising 21 apart-hotel style bedrooms as well as commercial units that could be used for bars, restaurants or outdoor terrace areas.

The hotel will form part of the New Waverley development project, which will include new leisure and retail spaces as well as 148 residential apartments across a 7.5 acre space.

Knight Frank is marketing the building on behalf of developer Edinburgh Castle for offers in excess of £8m. The developer has predicted that operating rooms revenue will be £1.4m a year, representing a potential yield of 12.2% after operation costs.

Canongate atrium

Jim Cummings, director of Edinburgh Castle said: “Final renovation work at the schoolhouse site should coincide with completion of the office development phase at New Waverley. We’ve seen an increase in footfall as the regeneration takes shape, and with the new government office bringing 2,900 civil service jobs to the area, we can expect this to continue. The area is fast becoming an established district in the capital, creating an exciting community for visitors as well as those who live and work in Edinburgh’s historic city centre.”

Neil Scott, partner of Knight Frank Edinburgh, added: “New Waverley has provided a significant boost to the city centre in Edinburgh – it has revitalised a once largely empty part of the city. The Canongate is an attractive opportunity for a hotel operator or investor to be part of what is fast-becoming one of the most successful regeneration schemes in the city, and even perhaps Scotland.”

The hotel is expected to be completed for hand over in June 2019.

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Edinburgh Airport could be sold off by GIP

Scotland’s busiest airport could be set to change hands in a multibillion pound deal, according to reports. The private equity firm which owns Edinburgh Airport is said to considering a sale of the hub in a deal which could it see it make a profit in excess of £1bn. Edinburgh Airport news from Airport Taxis Edinburgh International

Global Infrastructure Partners (GIP), a New York based investor group, purchased the airport from the now defunct BAA for £807m seven years ago.

But amid speculation the company is now looking to cash on soaring valuations of aviation infrastructure, it could sell on Edinburgh for as much as £2bn.

It is understood any potential sale could accelerate the airport’s growth strategy. Flights are being launched to 12 new European routes later this year as well as a new link to the US city of Boston.

GIP has also welcomed new hotel development at the Turnhouse site along with a major expansion of its retail space. Plans are also in place to transform nearby land into an international business park.ADVERTISING

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Last year GIP sold off its majority stake in Gatwick, with a hotly contested auction ultimately won by a £2.9bn bid from Vinci, the French airport operator.

In 2016, GIP sold London City Airport to a Canadian consortium for around £2bn, nearly three times what it paid for the hub a decade previously.

With Edinburgh GIP’s sole remaining part of its British airport portfolio, city sources told the Sunday Telegraph the company is considering dispensing with it altogether.

It comes at a time when Scotland’s busiest terminal is enjoying unprecedented growth.

It handled nearly 15 per cent more passengers last month than it did over the same period in 2018, with the airport’s passenger total soaring to 1,106,998, the first time it has topped the one million figure in March.

It means the traditionally quieter months of January and February are the only ones not to achieve passenger totals in excess of seven figures in the space of a calendar year.

One major airport investor told the Sunday Telegraph that GIP is expected to wait for more clarity over Brexit before launching a formal sale process

One city source said major infrastructure funds including Brookfield, Macquarie, APG and CKI could be among those to register an interest in taking over Edinburgh.

A spokesman for Edinburgh Airport declined to comment on the reports, but it is not the first time GIP have been linked with a sale.

The group was said to have explored hiving off the hub in 2017, but decided against the move because uncertainty surrounding Brexit – in particular access to European aviation markets – would impact on the price.