M&G Real Estate has completed the purchase of a mixed-use development site in Edinburgh for £49.1 million.

The three-acre Haymarket site was previously owned by Interserve's joint venture with Tiger Developments, Edinburgh Haymarket Developments Limited ("EHDL").

Located in the heart of Edinburgh's financial and commercial centre, the Haymarket site has planning permission for a mixed-use scheme including three contemporary office buildings (370,000 sq. ft. / 345,000 sq.m), retail space, a 190 bedroom hotel and a 170 unit apart-hotel.

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Chris Perkins, Head of Business Space, M&G Real Estate, said: "With the current supply/demand dynamics, bringing 350,000 sq ft to the market will reinforce the Exchange District as a prime hub for business in Europe. Whilst Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe's leading cities."

Dougie Sutherland, Executive Director at Interserve, said: "We are delighted to have agreed the sale of the Haymarket site to M&G. The sale follows a strategic review of the project and is part of our overall transformation plan, allowing us to realise our investment at a time that is right for both the development and the market."

(LM/MH)