Legal & General has invested over £50m into a regeneration project in Princes Street in Edinburgh. The investment, made on behalf of the L&G UK Property Fund, will be put towards creating a new hotel and city centre ‘hub’ which will include a shopping, dining, hospitality, leisure and event space.
This investment comes following similar transformational urban regeneration projects across the UK from Legal & General, in cities such as Cardiff, Salford, Newcastle and Sunderland. The plans are the first step in Legal & General’s commitment to “reshape the urban landscape” which can support cities’ post-COVID economic bounce back.
The scheme is targeting ‘BREEAM’ Excellent status and will look to maximise social value through local resourcing and employment throughout the development and operational phases.
Kammy Day, deputy leader at Edinburgh City Council, said: “Legal & General’s project promises to inject a huge amount of investment in our City and create brand new jobs at a time when we need it most.
“In many parts of the world, development is stalling as a result of the pandemic. That’s not the case in Edinburgh. It’s clear that companies remain confident in the enduring appeal of Scotland’s Capital as an attractive place to invest and this news should be viewed as a real confidence boost in our economy.
“Subject to planning, it will convert a prime site with stunning views and help to support the city’s wider recovery from COVID-19 – something all of us will benefit from.
“Pre-application consultation proposals will be submitted before the end of the month, with an online public consultation taking place, rather than a public event due to COVID-19 restrictions. A planning application will follow the consultation. The opening of the development will depend on the timescale for any planning approval.”
Matt Jarvis, senior fund manager at Legal & General, added: “As normality begins to return around the world, it has never been more important that we support the UK’s cities in continuing to adapt, change and innovate; supporting their economic recovery and continuing to promote them as attractive places to live, work and visit.
“Our vision for Princes Street will do just that, whilst securing these important buildings as a vibrant hub in the centre of one of the world’s great cities. With some of the best views anywhere, looking directly on to Princes Street Gardens and Edinburgh Castle, our aim is to create a space which all Edinburgh and Scottish residents can enjoy, whilst continuing to attract quality tourism to the city.
“For the L&G UK Property Fund, this represents a exceptional opportunity, in line with its strategy to diversify into more operational and alternative assets, and offering a platform to drive forward value for investors.”
This post has originally been featured in Property Wire.