It was reported by Bloomberg yesterday that the stalled Haymarket development in Edinburgh is finally moving ahead after a “deal was struck” between one of the UK’s biggest construction companies, Interserve and our own NAMA. The development in the heart of Edinburgh was originally a Tiger Developments project, Tiger Developments being part of NAMA Top 10 developer, Michael O’Flynn’s group. The development will include an hotel, offices and shops and will initially generate 250 jobs but in the long term, it is predicted it will sustain 3,500 new jobs.
It is reported that Interserve will imminently spend GBP 10.5m (€13m) of what is likely to be a GBP 150m (€175m) project. Interserve is partnering up with Tiger Developments in the delivery of the project. It remains unclear what “deal was struck” between Interserve and NAMA, it might mean NAMA is funding the development or it might mean NAMA is selling the Tiger Developments loan – the site was originally acquired with a GBP 40m loan – or it might mean something else. Neither NAMA nor O’Flynn Construction had responded to a request for comment at time of writing.
Tiger Developments is quoted as saying yesterday “Throughout the planning process we have worked hard to develop our proposals in line with the needs of the city and the local community…Our team has devoted a significant amount of time and energy so far in designing a scheme which now represents the best solution for this challenging site…So far we have received significant commercial interest in the site from a wide range of UK operators, on top of the existing tenants already signed up…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”
If this is a NAMA funding project, then it will take a fair lump out of the €2bn investment funding announced by the Agency last year.