A Manx-based company says plans for a ?300 million development in the heart of Edinburgh may still now go ahead.

The Caltongate project fell through two years ago, when its developer collapsed before starting work on homes, offices, a five-star hotel and conference centre, and a series of shops and cafes.

However, a consortium of finance company Sanlam, Isle of Man-based Mas and Exclusive Holdings, and businessman Ron Persaud has reached a deal with administrators to buy the site.

Planning permission still exists for the scheme, and the new deal is expected to be formally announced by the city council in the next few days.

The development site is located between Waverley Station and the building of the Scottish Parliament.