Jansons has announced the formal start of construction of a new hotel complex at the infamous Cowgate fire site in Edinburgh, and have also announced that LaSalle will take over the development upon its completion.
The Cowgate fire originally attracted worldwide attention way back in December 2002 and since then complex negotiations between nine different owners and the economic downturn have delayed progress on the site.
The fire started on 7 December 2002, required 19 fire crews to tackle the blaze and took over a day to get under control. It destroyed many buildings including the part of the Edinburgh University Informatics Department, The Gilded Balloon and La Belle Angele and was described as leaving a “gaping wound at the heart of the city”. The damage was estimated to be at tens of millions of pounds.
It is anticipated that work will be complete in December 2013: the new Ibis hotel, shops and restaurants have attracted universal acclaim from business and heritage groups in a city where planning consents in the world heritage site can be controversial.
Andy Jansons, CEO of Jansons commented:
“This represents the culmination of a great deal of hard work but I am proud that we are able to announce the formal launch of construction today and the purchase of the scheme by LaSalle. Edinburgh has been very helpful in helping to make this happen and I would like to place on record my appreciation to the council for its support.”
Seeking further opportunities
“Tourism is one of the cornerstones of the economy in Edinburgh and with the latest year round occupancy figures for hotels in the mid 60’s, the sector is holding up extremely well through the downturn. With work starting on SoCo today and with the announcement of this deal, we can confirm that we are actively seeking further opportunities in Edinburgh and Scotland.”
John Yeend, Director of LaSalle added:
“This represents a substantial opportunity to secure an attractive long term investment in a key city centre site in Scotland’s capital. It also represents a strong vote of confidence in Edinburgh’s economy… We believe that the development will quickly become a positive and valued addition to Edinburgh’s city centre and we look forward to making further investments, where the schemes can meet our standards and expectations.”
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