Site of distinctive Edinburgh offices to be converted to huge industrial and warehouse scheme
A joint venture between industrial developer Chancerygate and property fund Bridges Fund Management has exchanged contracts to acquire the distinctive Grayfield House site in the Sighthill area. The site, located on Bankhead Avenue, currently comprises some 90,000 square feet of office accommodation.
The new owners plan to speculatively develop a “best-in-class” urban logistics scheme on the site, which would be re-branded as Capital Park, with a projected development value of £25 million.
Neighbouring occupiers to the proposed development include car dealer Evans Halshaw, Tool Station, Edinburgh College, Edinburgh Napier University and Burton Biscuit Company.
The venture will now submit a planning application to redevelop the site to deliver 165,000 sq ft of industrial and warehousing space across 20 units, making it one of the biggest schemes in the area.
Property asset management company Mapeley is selling the site and the deal is due to complete in April.
Chancerygate development director Mike Walker said: “We are very pleased to have secured this development opportunity in what is widely regarded as Edinburgh’s prime industrial location.
“We believe there is an undersupply of Grade A best-in-class industrial space in Edinburgh and our site will go some way to addressing this imbalance. We will be offering the units on a sale or leasehold basis, which is quite rare within the city, and we already have interest from a variety of potential occupiers.
“The site is situated within close proximity to Edinburgh’s motorway network, commuter links and airport, making it an ideal location for SME [small and medium-sized enterprises] occupiers, trade counters and last mile logistics operators.”
Chancerygate is a major industrial developer with 22 sites ranging from Livingston in West Lothian to Bournemouth on the south coast of England.
Subject to planning, Capital Park will be Chancerygate’s second development in Scotland after Livingston Trade Park which is located on the Houstoun Industrial Estate and comprises eight leasehold units totalling 40,000 sq ft.
Chancerygate and Bridges Fund Management have been working in partnership on projects for more than ten years.
Investments include the development of The Curve, a student housing development in London; the regeneration of Beeston Business Park, Nottingham; and the acquisition of sites earlier this year for industrial development in Coventry and Peterborough totalling 454,000 sq ft.
Bridges Fund Management partner Guy Bowden said: “It’s great to be finalising our third recent JV with Chancerygate following our acquisitions in Coventry and Peterborough.
“The site offers an excellent opportunity to carry out some significant regeneration work and we will ultimately provide space that is much more environmentally sustainable the accommodation currently available in the area.”
The joint venture was advised by property consultancy Galbraith on the site acquisition while property agents Savills and Ryden advised Mapeley. Galbraith and Ryden will be the retained agents on the development.
Last month, Chancerygate was recognised as one of “1000 companies to inspire Britain” following a report by the London Stock Exchange Group, and as one of UK property industry’s best places to work by trade publication Property Week.
A message from the Editor:
Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions
Want to join the conversation? Please or to comment on this article.