Momentum’s building as byuers bid for top development spots

National and international developers – some from as far afield as the Middle East – are said to be vying for a range of sites that are currently on the market. Among them is Caltongate, where a consortium of South African investors has agreed a price with administrators of the failed developer Mountgrange Capital and now only needs to strike a deal with the city council in order to gain control of the Old Town site.

A closing date for bidders has also been set for next week for the former Fountain Brewery site, which was only put up for sale in early summer. Other sites where there is hope of an imminent deal include the redevelopment of the former Edinburgh Royal Infirmary at Quartermile, the former Donaldson’s School for the Deaf at West Coates and the old Royal High School in Regent Road.

Cameron Stott, a director at property firm Jones Lang LaSalle, said: “It would be great for the city to have some new developers hopefully kickstart work at these gap sites, which have been sitting empty for several years.”

Development of the Caltongate site alone would create nearly 1700 jobs and around £150 million of investment for the city. Ronald Persaud, a director of the joint venture company that first announced plans for the site in 2001 before selling it on to Mountgrange Capital in 2004, is heading the South African consortium looking to snap up the site. It is understood they have now agreed a price with Deloitte, administrators for Mountgrange.

The consortium has also signed a “conditional missive” with the administrators, with an interest in taking the site forward broadly in line with the existing planning consent, which includes hundreds of homes, offices, a five-star hotel and conference centre and a series of shops and cafes.

But the deal rests on an agreement being struck with the city council to acquire land it owns, including the Cranston Street garage, Canongate Venture building and East Market Street arches.