The Canongate, a luxury boutique hotel redevelopment in the heart of Edinburgh’s New Waverley regeneration project, has been placed on the market for £8 million by its owner.
The former C-listed Victorian schoolhouse will feature 21 apart-hotel style bedrooms as well as commercial units which span over two floors, ideal for a bar, restaurant and outdoor terrace area.
Knight Frank, the independent commercial property consultancy, is marketing the building on behalf of developer Edinburgh Castle Ltd for offers in excess of £8 million. Edinburgh Castle Ltd has forecast operating rooms revenue at £1.4million per annum, representing a potential yield of 12.2% after operation costs.
Following a full renovation and fit-out led by contractor Redpath, the development has been redesigned to celebrate the building’s original features – including the school house façade and double-height atrium. The property is expected to be complete and ready to hand over to a new owner in June 2019.
Neil Scott, Partner at Knight Frank Edinburgh, said: “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.
“Edinburgh is an increasingly popular destination for tourists and business travellers alike and, despite several new hotel developments in the city, occupancy rates remain high – last year they were around 83% in 2018. Projections for the development are robust, making it a strong prospect for a commercial operator / investor – or multiple independent operators – to take the reins at the venue.”
The 7.5-acre mixed-use New Waverley project lies in the heart of Edinburgh’s Old Town, transforming the area with 160,000 sq. ft. of Grade A office space, a range of leisure and retail opportunities and 148 residential apartments and penthouses. Recent tenants signed up to the development include boutique gin distillers Edinburgh Gin and family-run café and bakery Loudon’s, taking spaces in the arches and new public square respectively.
Jim Cummings, Director at Edinburgh Castle Ltd added: “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.”