Property

Canongate hotel brought to market for £8m

The Canongate, a boutique hotel redevelopment in the heart of Edinburgh’s New Waverley regeneration project, has been placed on the market for £8m 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, suited 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. Edinburgh Castle has forecast operating rooms revenue at £1.4m 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.”

Jim Cummings, director at Edinburgh Castle 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.”

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