Bosses of both companies expect their £200 million mixed-use regeneration effort to significantly boost the Edinburgh economy, particularly the Haymarket area of the Scottish capital.
In addition to new, high-quality office space, the redevelopment plans include a sizable number of new retail and residential properties. A second phase of the scheme is already being discussed, with up to 700,000 square feet of additional office and retail space potentially added once the first phase is complete.
Adrian Ringrose, chief executive of Interserve, said in a statement that Haymarket represents one of the best city centre development locations in the UK. The investment and project are expected to create several thousand new jobs over the next few years.
Simon Fox, Tiger’s development director, said the two joint venture partners are confident they can deliver what Haymarket and central Edinburgh need.
“Throughout the planning process we have worked hard to develop our proposals in line with the needs of the city and the local community”, he said.
“We are now looking forward to working closely with our development partners Interserve to finally give the Haymarket area the high quality of mixed-use development which it so richly deserves, providing a critical balance to the overall development of Edinburgh’s city centre.”
In other Scottish office space news, Miller Developments recently announced that it is planning to initiate the building of a £400 million business park close to Aberdeen Airport as part of a scheme expected to create as many as 8,000 new jobs.
Editor’s notes: The Haymarket regeneration scheme, which included 390,000 square feet of office space, shops, two hotels and underground parking, faced several delays, including problems below ground while bolstering Victorian railway tunnels.
In June 2018, global investor M&G Real Estate acquired the four-acre mixed-use development site – The Haymarket – for £49.1 million.
It was reported in 2022 that M&G had pre-leased all available office space at The Haymarket scheme through several deals, including with independent investment partnership Baillie Gifford, which agreed to rent 280,000 square feet of Grade A accommodation at 3 Haymarket on a 20-year lease and relocate its new head office to the property in the latter half of 2023.
Examples of flexible office space in Aberdeen can be seen here.