York development company S Harrison has appointed Edinburgh based Sharkey as the principal contractor to transform a historic Edinburgh building into the latest boutique hotel for Malmaison Hotel du Vin Group.
S Harrison has also now signed a forward funding agreement, with an end value in excess of £25million, with a FTSE 100 pension fund, to finance the development. S Harrison was advised by the Edinburgh offices of Ryden and Brodies. The fund was represented by CMS, D2 Property and Christie & Co.
Grade A listed Buchan House is located in a prime position on St Andrew Square in the heart of Edinburgh’s New Town. The work will transform it into a 72 bedroom Malmaison hotel complete with Chez Mal Bar and Brasserie.
When the 72-bedroom hotel opens in 2019, it will be the second Malmaison in Edinburgh and will create approximately 50 new jobs. The building’s period features will be restored and Malmaison will inject its distinctive, stylish aesthetic to make Buchan House a unique hotel offering within the famous Georgian architecture of the New Town.
S Harrison’s development director, David Clancy, said: “We’re delighted that work is underway to restore this historic building and give it a new lease of life as an exceptional hotel in a highly sought after location. Sharkey has a strong track record working on prestigious hotel projects throughout the UK and an unrivalled local knowedge of the Edinburgh market, which made them the ideal contractor for this development.
“Securing a forward funding agreement with a major UK pension fund is also a huge coup and speaks volumes about the level of confidence that currently surrounds Edinburgh’s property market as a whole.”
This project is S Harrison’s second development for the Malmaison Hotel du Vin Group, having recently handed over a luxurious Hotel du Vin in Stratford-upon-Avon. The work has seen two Grade II listed Georgian townhouses transformed into a stunning 46-bedroom hotel, close to the centre of Shakespeare’s hometown.
S Harrison has built a strong and growing presence in Edinburgh following its successful £23 million redevelopment of a site on Leith Walk in 2016. The site was formerly part of Edinburgh’s original Botanic Gardens and was transformed into a 240-bedroom, student accommodation scheme. S Harrison has also recently bought two other sites in the Leith and Haymarket areas of the city and continues to explore other opportunities in the area.
