Loophiole closure ends Sir David Murray’s hopes for Princes Mall bargain

THE Scottish Government has closed a legal loophole that could have seen a £50 million shopping mall in Edinburgh handed from the city council to tycoon Sir David Murray for just 40 pence.

Princes Mall, the former Waverley Market on Princes Street, was among a number of prime properties across the country held in “common good” trusts which could have been lost to the public purse.

Under the proposed legislation, ownership of any property held on a long lease with more than 100 years to run would automatically be transferred to the leaseholder.

Sir David’s Premiere Property Group only pays the council a penny a year in rent under a £14m deal struck between council chiefs and the mall’s original developers in the 1980s.

Earlier this year a parliamentary committee failed to back calls for the site at the east end of Princes Street to be exempt from the new law.

However, under last-minute changes made by the government, it has redefined those leases which are affected. The new legislation introduces a 175-year clause which exempts the Princes Mall.

Alison Johnstone MSP, who has been lobbying for action to close the loophole for years, said: “This is a very welcome result after years of hard work by local Greens and other campaigners.

“The Scottish Government has finally seen the sense of keeping this valuable land in public hands and I think that both current and future residents of Edinburgh will very much appreciate this decision.”

A spokeswoman for the city council said: “The council welcomes the Scottish Government’s amendment .”