Ascott Group to invest £25 million in serviced residence complex at Quartermile
|
|
Landmark development becomes site of first Ascott investment in Scotland
Leading Singapore-based international serviced residence owner-operator The Ascott Group is set to create a new 107 unit aparthotel at the landmark Quartermile development in Edinburgh in a £25 million deal.
Ascott has signed a sale and purchase agreement with Gladedale Capital and Bank of Scotland Corporate, the joint owners of the Quartermile project, which is one of Scotland’s largest urban regeneration projects.
Gladedale Capital is currently constructing the seven-storey building as part of the project to redevelop the site of the former Royal Infirmary. The project consists of 19 acres of Edinburgh city centre which has been undergoing urban re-development into one of Europe's premier business, residential and retail zones.
Ascott will take possession of the 107-unit serviced residence upon completion of construction in mid 2009, marking the company’s first venture into Scotland. It currently operates 44 properties in Europe, including seven in London.
Jim McIntyre, Managing Director of Gladedale Capital, said: “We are delighted that a quality international owner-operator such as Ascott is coming to Quartermile.
“We received significant interest in this site, demonstrating that there is strong demand for the right product in the right location.
“Securing Ascott is a significant step forward for Quartermile, demonstrating the product is receiving global interest.
“This investment from the Far East comes in the wake of the sales of residential units at Quartermile to customers in Hong Kong.
“It is a tremendous endorsement of Quartermile that Ascott has chosen our development as their first venture in the UK outside of London.
“An investment of this magnitude also delivers significant benefits for the Scottish economy and will create a significant number of new jobs in Edinburgh’s booming hospitality sector.”
The serviced residence will be named Citadines Edinburgh Quartermile and is expected to open for business in mid 2009.
Mr Gerald Lee, Chief Executive of Ascott Europe said: "Ascott has been seeking suitable locations in Europe's key gateway cities to enhance its presence and increase its portfolio from 5,000 units to 7,500 units by 2010.
With Citadines Edinburgh Quartermile, Ascott will establish an important foothold in Scotland, and be able to offer its customers another quality serviced residence in this part of the world.
“With its entry into Scotland, Ascott will expand its footprint to 50 cities and 21 countries and be the first international serviced residence owner-operator in Edinburgh.”
Ascott will invest just under £25 million in the property including acquisition and refurbishment costs.
When completed by 2012, the Foster & Partners-designed Quartermile development will include over 300,000 sq ft of premium office space, over 55,000 sq ft of retail and leisure space, more than 900 new and converted modern apartments and seven acres of landscaped gardens and public space.
The first 105,000 sq ft office development, No 1 Quartermile Square, will be completed by October this year and almost half of the building has already been let to leading law firm Maclay Murray & Spens.
Preparation work in advance of the second phase of development is well under way and construction is expected to commence towards the end of the year.
|