Plans spell the end of brewery landmark

THE derelict site of the former Fountain Brewery will be transformed into a mix of homes, offices, hotels and canal-side restaurants and cafes under ambitious plans lodged today.

The Lloyds Banking Group has submitted proposals for the transformation of the giant Fountainbridge site, which will see the tall main building featuring the iconic McEwan's logo being turned to rubble.

In its place, the 13 acre site will become one of the city centre's biggest regeneration areas, including hundreds of homes, offices, student flats, at least one 250-bed hotel, a mini food store, shops, restaurants, cafes and bars, and scope for other leisure buildings.

It is hoped that the development will help open out the canal and help realise the vision of the city council and British Waterways Trust Scotland of a new 'canal quarter' for the city.

However, property experts warned it may take years before work gets under way.

In a submission to the city council, Lloyds' project managers CB Richard Ellis (CBRE) said: "The redevelopment of the site provides an opportunity to consider a comprehensive approach to the regeneration of the area as a whole, making new connections through the site and linking surrounding areas, creating a mixed-use environment and establishing the canal-side as a new quarter for Edinburgh."

CBRE said that it has carried out nine months of discussions with city council chiefs, as well as five months of consultation with the local community, before submitting the application for planning permission in principle.

The site, sold by Scottish & Newcastle to HBOS in 2008, was initially going to be a major office "hub" for the company, bringing together all of its offices apart from its headquarters onto one site.

It now intends to get planning consent for the new mixed use scheme then sell off individual parts of the site to developers.

Property experts say that the approach will mean it will take some time for the scheme to be completed.

Alasdair Humpherey, managing director of property firm Jones Lang LaSalle in Scotland, said: "Development on that site is unlikely in the short term because of the lack of development finance and other such problems, but getting planning in principle then detailed consent can take several years and things may have picked up by then.

"I am sure they will want to get the consent in place and have the principles for development in place, then look to sell it on to someone that can develop it their way."

He said that, while the current market remains difficult, it is likely that there will be stronger interest from potential developers in the coming years, when the market picks up and the amount of available office space reduces.He added: "That site and the Tiger site (where Tiger Developments planned a 17-storey hotel] at Haymarket are the two most obvious sites in the city centre that are calling out for action because they have both been lying empty for a long time but they both have great potential."

A spokeswoman for Lloyds Banking Group said: "We can confirm plans have been submitted."

Councillor Tom Buchanan, the city's economic development leader, said: "This is another important step towards bringing this valuable space back into use for the city and, of course, to the ongoing regeneration of Fountainbridge."

He added: "We look forward to seeing more detailed plans come forward in due course."