Tycoon backs development
Gloag invests in hotel for vacant city offices
The vehicle for transport tycoon Ann Gloag has teamed up with Valad Europe, part of the global Cromwell Property Group, to acquire the offices at Kintore House in Queen Street which have been vacant for more than seven years.
Formerly occupied by energy industry analysts Wood Mackenzie, the offices were purchased from Lonestar and Hudson for £6.3m by Gloag Serviced Apartments Limited.
The aparthotel will be operated by BridgeStreet Global Hospitality, under its Mode brand and is expected to open next year.
It will comprise 82 apartments over four floors.
Ms Gloag said: “We are delighted to be bringing BridgeStreet to the capital in what will be their first bespoke building in Scotland.
“We are also looking forward to playing our part in helping to refurbish Kintore House and regenerate what until now has been a relatively unloved corner on one of the New Town’s finest streets.”
Simon Marriott, head of investments and UK real estate at Valad Europe, said the building has the ability to generate attractive ongoing income.
“As part of its global roll-out of the Mode brand, BridgeStreet is identifying quality buildings in key gateway cities to convert them into stylish apartment style accommodation.”
Pauline Bradley of Greyfriars Investments, advisers to Gloag Investments, said: “Gloag Investments’ acquisition of Kintore House alongside Valad represents a continuation of our ongoing strategy of identifying and backing proven management teams in the delivery of opportunities that can provide long term value.
“We have long standing and direct experience of the capabilities of the Valad team and in BridgeStreet we have secured an operator with global reach.”
Rydens advised the purchasing joint venture and Knight Frank acted for the sellers.