Princes Street stores in talks to transform west end block

Published on Saturday 20 December 2008 10:11

FAST food company McDonald's and Royal Bank of Scotland are among a clutch of firms in talks about transforming the first block of buildings on Princes Street.

The companies, along with the owner of the flagship House of Fraser store and four other property owners, want to help assist the redevelopment of the west end block.

A meeting has been arranged for February between all of the property owners and council officials on how to take the project forward.

Top of the agenda is to be how to bring unused areas of the block, such as lanes and upper floors, back into use.

It is the first sign of real progress on the council's "string of pearls" vision, which aims to revive Edinburgh's prime shopping thoroughfare.

And it has been welcomed by property experts, who say that the interest among the firms shows that change can happen on Princes Street.

Councillor Tom Buchanan, the city council's economic development convener, said: "Block One is our priority for Princes Street and we are working hard to secure new investor interest to join forces with the existing stakeholders to regenerate the vacant and poorly used space in the block.

"Working together in this manner will be crucial in ensuring that the best use is made of the whole block and I'm delighted that the current owners are supportive of that aim."

Under the council's vision, 'block one' would be reorganised to bring unused upper floors back into use. Owners will also be looking into possible uses for buildings on Hope Street Lane.

And talks in February are also likely to focus on any buildings in the lane that could be demolished to make a more attractive space featuring public courtyards.

The council's view is that the only way to regenerate the street is working on a block-by-block basis, rather than individual buildings, as has happened in the past.

Tim Appleton, senior director of retail at CB Richard Ellis, said: "When we are in the current cycle in property, anything to enhance the value of each of their properties will be good for the investment.

Now is the time to look to maximise value and owners need to look at how they can work together to do that.

"For property owners, it is all about the accommodation that you are able to provide for your retailers. So many buildings on Princes Street are just not functional so if we are getting a means of moving on then that would be welcome.

"Edinburgh is one of the iconic capitals of Europe. Major retailers and fashion houses still want premises in Edinburgh, even in the current climate, but they need the premises to be right for them.

"Movement on this block would be very significant and it would be the right block to start on. Everything in the city recently has been focused on the east end so it would be very positive to be starting on the west end."

WHO OWNS WHAT

135 O2, Derbyshire County Council

137 McDonald's, McDonald's Property Company

139 The Edinburgh Woollen Mill, Freehold Properties and Investments

139 Nobles Amusements, Welbeck CP

141 Boots, Cockspur Property

142-144 Royal Bank of Scotland, Royal Bank of Scotland PLC

145 House of Fraser, CBRE Investors