Stewart now banking on property market rebound

Stewart has bought a site on North Bank Street - which used to house a Bank of Scotland branch and offices - for 1 million through his Beaghmor Property development firm.

Backed by merchant bank Close Brothers, he intends to turn the historic building into luxury one- and two-bedroom apartments, which will be put on the market for more than 300,000.

While the size of the development is fairly modest compared to some of the vast projects seen prior to the banking crisis, the deal has been interpreted as a sign that property developers are dipping their toes back into the market after many were forced to postpone or scrap plans during the recession.

The news also follows encouraging official housing figures that showed a boom in sales north of the Border during the last quarter. The latest report from the Registers of Scotland, published earlier this month, revealed a 29.6 per cent surge in home sales.

Stewart, 35, is rebuilding his property portfolio after he offloaded a number of sites prior to the subprime crisis - allowing his firm to enter the recession in a debt-free position.