Manx Company heads Up Multi-Million Pound Deal to Revive Edinburgh’s Historic Old Town A multi-million pound deal has been agreed to revive the Caltongate project¬, one of Edinburgh’s most significant city-centre development sites. An international consortium headed up by Isle of Man based Artisan Real Estate Investors has agreed to buy the 640,000 sq ft site which lies at the heart of the city’s historic Old Town. The deal has been agreed with Deloitte, which took over administration of the Caltongate site in 2009 following the collapse of the previous owner Mountgrange Capital. At the time, the project was set to create 2,000 jobs for the city, with a total investment of around ?300 million. Artisan was founded in the Isle of Man in 2008 and has fast grown to become a niche provider of property investment advisory services. Artisan brings together a powerful consortium of South African investors which is set to breathe new life into a project that has been dormant for more than a decade. Shareholding partners include property developers Atterbury, who have a 20-year track record of delivering prestigious mixed-use developments across the southern hemisphere, and MAS plc., a listed real estate investment firm also based in the Isle-of-Man, together with significant backers including Sanlam, one of South Africa’s leading financial service groups. The consortium is spearheaded by Lukas Nakos, Artisan’s Managing Director. Welcoming the deal, he said: “Caltongate has remained the most prominent gap-site in Edinburgh’s city centre for more than a decade – a situation we now intend to change. “The sheer size and scale of the site, lying at the heart of one of the world’s most historic city centres, offers unparalleled opportunities for a high quality development that can do justice to its unique and spectacular setting. “Artisan will bring international investment to the table, coupled with the vision and commitment needed to complete what has already been started. We intend to work in close partnership with the City of Edinburgh Council and a wide range of local stakeholders to move forward quickly with development plans in the New Year.” Artisan will now develop detailed designs based on existing mixed-use consents, which were approved in 2008 by the City of Edinburgh Council. These include a modern 195,000 sq ft five-star hotel, with space for 211 bedrooms and an 18,000 sq ft conference centre, around 160,000 sq ft of premium office space, 30 new shops and cafes and 165 new homes. Welcoming the deal, Cllr Tom Buchanan, Convenor of the City of Edinburgh Council’s Economic Development Committee, said: “The development of the Caltongate area has long been identified as a priority for the city and I look forward to working with Artisan to help progress their plans. This is Artisan's first venture into the UK and the fact they have chosen Edinburgh illustrates how attractive the city is for foreign investors.” Chartered Surveyors Smith Cole Wright acted alongside Ron Persaud of Persaud & Co as property advisors to Artisan. Director of Smith Cole Wright, Fraser Smith, added “This is a long overdue opportunity to revitalise a strategic city centre location between Waverley Station and the Scottish Parliament – whilst being part of the very fabric of the historic heart of the city. The location is the missing piece of the jigsaw which will see the rejuvenation of the Old Town as a vibrant commercial and social quarter of international appeal. “We believe this is an excellent time to be investing in a quality development and investment opportunity for Edinburgh city centre. While we have always enjoyed high levels of interest from international hotel chains in the city centre, there is now a subtle shift in the city’s commercial property market indicating a growing demand for high quality office accommodation, with very little Grade A stock in the pipeline.” John Reid, a partner in Deloitte’s restructuring services team, said: “Caltongate is a prestigious site with great potential. This deal is extremely good news for Edinburgh and an indication of the value of this historic area as not just a prime real estate investment site, but also as an important part of the city’s heritage.” Artisan has approached the City of Edinburgh Council to acquire certain Council-owned assets that are required to deliver the consented development. This will be debated at full Council on 22 December 2011. The original scheme behind the Caltongate project was first unveiled in 2001, gaining planning consent the following year. In 2004, the site was sold to London-based developer Mountgrange Capital which opted to develop more expansive plans, approved in 2008. The company collapsed in 2009, leaving Caltongate in the hands of administrator Deloitte until the deal with Artisan. Ends