A former C-listed Victorian schoolhouse that has been transformed into a luxury boutique hotel is now ready to find its first hospitality owner.
The Canongate, a hotel redevelopment part of in Edinburgh’s New Waverley regeneration project, has been placed on the market for £8m by its owner developer Edinburgh Castle Ltd.
The property will feature 21 aparthotel bedrooms, as well as commercial units which span over two floors, ideally placed for a bar, restaurant and outdoor terrace area.
Knight Frank, the independent commercial property consultancy, is marketing the building on behalf of Edinburgh Castle Ltd for offers in excess of £8m.
Edinburgh Castle Ltd has forecast operating rooms revenue at £1.4million per annum, representing a potential yield of 12.2% after operation costs.
Following a full renovation and fit-out led by contractor Redpath, the development has been redesigned to celebrate the building’s original features – including the school house façade and double-height atrium.
The property is expected to be complete and ready to hand over to a new owner in June 2019.
Neil Scott, partner at Knight Frank Edinburgh, said: “New Waverley has provided a significant boost to the city centre in Edinburgh – it has revitalised a once largely empty part of the city. The Canongate is an attractive opportunity for a hotel operator or investor to be part of what is fast-becoming one of the most successful regeneration schemes in the city, and even perhaps Scotland.
Jim Cummings, director at Edinburgh Castle Ltd added: “Final renovation work at the schoolhouse site should coincide with completion of the office development phase at New Waverley. We’ve seen an increase in footfall as the regeneration takes shape, and with the new government office bringing 2,900 civil service jobs to the area, we can expect this to continue. The area is fast becoming an established district in the capital, creating an exciting community for visitors as well as those who live and work in Edinburgh’s historic city centre.”