Nursing home conversion on hold as buyer fails to appear

Published on Tuesday 21 October 2008 09:50

PLANS to transform a former nursing home into a multi- million-pound luxury property complete with home cinema and sauna are in doubt after a developer failed to come forward to purchase the site.

Owners Dow Investments had gained planning consent to turn Morningside Nursing Home back into a single residential property with a new three-storey extension.

The London-based firm then put the Tipperlinn Road property on the market in the hope that a buyer would be found to take the plans forward.

However, several months after it was put up for sale for offers over 1.75 million, a developer has yet to been found.

The slowing property market and lack of funding availability have been blamed.

Selling agents are now marketing a number of other potential uses for the site, including turning it back into a nursing home or making it into office space.

Will Scarlett, of estate agents Rettie & Co, said: "It is a very good property in a great location but, although we have had a good level of interest, the residential market is clearly not what it was. That is affecting all aspects of the market, including the top end.

"The problem is that you would need 1.75m to buy it, then x amount to carry out the work."

He added: "It is all about funding. There are a limited number of buyers cash-rich enough to be able to do that."

The nursing home was closed earlier this year by operator Forth Care, which also runs Levenhall Nursing Home in Musselburgh and Milford House in Duddingston.

Property owner Dow Investments achieved planning consent earlier this year for the transformation of the property, which sits in the shadow of George Watson's College, into a near-9000 square foot home.

The existing C-listed stone building dating back to 1880 would be maintained, with the 1990s rear extension being demolished and replaced with a new sandstone and timber extension.

It is understood that if a buyer cannot be found, Dow will consider carrying through the project itself once the market improves.

Mr Scarlett said that the proposed development would create a "substantial" family home combining the traditional main building with a modern extension.

He added: "That top-end of the market, like the whole residential market, is challenged at the moment, so it is difficult to put a price on what it would be worth, but it certainly would have been at least in the high two-millions."

Sofia Sheldrick, an associate at estate agent Savills in Edinburgh, said that the recent economic downturn had slowed demand in all sections of the property market.

She added: "The last few weeks have been very different to what we know of Edinburgh as a buoyant market.

"There is a general lack of ability, or confidence, to act.

"The reminder is also there every day that we are going through a time of change and that is causing even those who have the ability to buy to hesitate at the moment."

Nobody at Dow Investments was available to comment.