Bank cashes in as three branches go on market

TWO city banks are being lined up for a transformation into bars or restaurants after being put on the market.

The Evening News revealed last November that the Bank of Scotland was preparing to dispose of three branches in the city centre as it prepares to open its first bank on the Royal Mile.

Agents marketing the properties say there has been strong interest from bar, restaurant and cafe operators in two of the branches – on Chambers Street, opposite the National Museum of Scotland, and on Castle Terrace, on the corner of Lothian Road.

The Castle Terrace branch, which is owned by a private landlord based in England, is available to rent and is seen as an ideal site for a restaurant, close to two other new eateries, Nando's and Illegal Jacks. Pub operators have also expressed an interest.

The Chambers Street branch is up for sale and spans two upper floors as well as basement and sub-basement levels. It has attracted interest from restaurant operators.

Simon Bashord, a retail expert at property firm Jones Lang Lasalle, which is marketing the properties on behalf of the Lloyds Banking Group, said: "It's a really good location for student and tourist uses. It fits well in terms of offices above and restaurant/cafe on the ground.

"It's a good spot there with a number of coffee shops and a good night and day location.

"We had one person round that is interested in a gallery idea as well, so that has potential too. The idea of a gallery/restaurant/cafe could work well there."

As well as the Castle Terrace and Chambers Street properties, a third branch is up for sale at North Bank Street.

Agents believe the upper floors, which overlook Princes Street Gardens, could be turned into flats. They say the ground floor could be split up to form two retail units, which would most likely be aimed at the tourist market.

Mr Bashford said there has already been "strong" interest in all three properties and it is hoped that deals could be completed within months.

"Interest has been good and there has been a lot of people around them," he said.

"People are just a bit nervous in the development market in terms of whether they can get funding or not."

He added: "Historically, December and January is fairly slow, but we are getting viewings over January and February and we hope to drum up enough interest for a closing date."

A spokesman for Bank of Scotland said that a letter had been sent to all customers of the three branches telling them that they would close at the end of this month, when the new branch at the Missoni hotel development on the Royal Mile is due to open.