New owner pays above asking price
Parabola snaps up prime city store building
House of Fraser building in Princes St: new owner, long lease
A property developer has snapped up the House of Fraser building at the west end of Edinburgh’s Princes Street.
Parabola is believed to have paid “significantly in excess” of the £13.7 million price tag for the corner site.
The company said it was a strategic acquisition and revealed no further details. There has been speculation that it could be turned into a hotel although House of Fraser has a lease on the building until 2058.
It is currently renegotiating rents with landlords housing its department stores.
Parabola is awaiting confirmation of planning permission to begin work in the summer on a £500 million urban development at the Gyle business park.
The 43 acre swathe of land is served by the tram and Edinburgh Park station.
Tony Hordon, managing director at Parabola, said buying the House of Fraser building was a “strategic purchase and addition to the Parabola investment portfolio”.
He added: “It provides diversification to our other Edinburgh asset, a 43-acre development site at Edinburgh Park, which is subject to a live planning application, to create a European exemplar of a new quarter of the city.
“Our current focus is on securing planning permission for Edinburgh Park’s first new buildings in a decade, which we anticipate in the first quarter of this year, with work beginning on site in the summer to meet the significant opportunities for Edinburgh.”