An ambitious plan for a key development regenerating a site on Edinburgh’s waterfront has moved a step closer after the agreement of a funding deal.
Specialist lender Octopus Property, part of the Octopus Group, has agreed to provide a £10 million commercial bridging loan for the acquisition of six freehold plots that form part of the Granton Harbour Estate and will be the “heart” of the new Edinburgh Marina development.
Planning consent has been granted for a 340-berth marina and more than 100 retirement living apartments, across 19 acres.
Detailed planning is expected soon for 440 residential apartments, a 187-room hotel with a 20,000 square-foot spa and fitness centre as well as a 10,000 sq ft conference and banqueting facility.
Granton Harbour forms part of the 346-acre Edinburgh Waterfront site, which is one of Europe’s largest redevelopment sites that stretches for two miles along the Firth of Forth and will provide up to 7,500 new homes.
Ludo Mackenzie, head of commercial property at Octopus Property, which offers residential, commercial, and development lending, commented: “This is a significant transaction for Octopus Property, as we continue to build our loan book exposure in and around Scotland’s largest cities, where the underlying market fundamentals continue to support real estate development and investment.
“The Edinburgh Waterfront site is one of the most ambitious projects being undertaken in Europe and with the next phase generating significant interest from a range of financial institutions, it’s a scheme we are extremely comfortable being involved with.”
It comes as the lender continues to grow its loan book exposure in major UK cities seeing strong demand for property investment and development. Investment in Scottish property leapt in the second quarter, with the total value of deals almost double that of a year earlier, property firm CBRE Scotland said earlier this month.
Octopus Property has been offering specialist loans – covering residential, commercial, and development lending – since 2009, and in that time, has lent more than £3 billion.
John Charcol acted as broker for Octopus Property & Pip Asset Management acted for Edinburgh Marina, with the latter aiming to see Granton restored as “the jewel in Scotland’s historic coastline”.
It was also recently confirmed that a major global hotel partner is set to drop anchor at the site.