Tycoons behind Caltongate failure back Craighouse plan

THE former owners of the failed Caltongate development are part of a new partnership behind plans to redevelop Edinburgh Napier University's historic Craighouse campus.

• Napier's scenic Craighouse campus dates back to the 12th century

The campus - situated on a 51-acre site that boasts stunning views across the Capital - has been sold to the Craighouse Partnership in a deal believed to be worth around 10 million.

The seven A-listed university buildings are to be turned into flats, with additional housing also set to be built on the site.

The development is being funded by Mountgrange Real Estate Opportunity Fund (MoREOF), a 300m fund drawn from 28 international investors.

It is managed by Mountgrange Investment Management (MIM) - a company run by Manish Chande and Martin Myers, the property tycoons behind Caltongate.

Mountgrange Capital, also headed by Mr Chande and Mr Myres, went into administration in April 2009 after the Bank of Scotland, which was owed 73.8m, pulled its support.

The Craighouse Partnership includes Edinburgh company Sundial Properties, which will manage the restoration.

The Craighouse site dates back to the 12th century, formerly housing patients of the Royal Edinburgh Asylum.

The buildings will be converted into a mixture of flats, ranging from one-bedroom apartments to family homes, and is it estimated that between 60 and 80 could be built.

William Gray Muir, managing director of Sundial Properties, said the site could also be used to accommodate "services" for the residents, such as leisure facilities.

He stressed that the location would still be open to the public and added that key historical features were set to be retained.

Mr Gray Muir said: "At the moment it's very difficult to see that those areas would be changed in any significant way. They will be heavily protected by the statutory authorities and we regard them as an asset.

"We are very keen to enhance public access because we recognise how important this site is to the local community. We believe the key market will be local people who will be owner-occupiers."

It is unlikely that Craighouse will continue to be used as a wedding venue, though it will remain as such until December next year.

The university will occupy the site until the middle of 2013.

Professor Dame Joan Stringer, the university's principal, said: "I am extremely pleased that the historic campus will be reborn once again by experts in the restoration of listed buildings and the community will still be able to enjoy the stunning grounds."