THE Caledonian Trust has revised the terms of the planned sale of a landmark building in Edinburgh earmarked for student accommodation.
It said in a statement to the London Stock Exchange that key dates had been affected amid the coronavirus crisis with the process not expected to be completed until 2022.
In April the company had flagged changes to the plans for St Margaret’s House near Meadowbank, which was included in a proposal to develop part of the site into almost 400 student rooms and about 100 family homes.
READ MORE: Edinburgh property firm to cut £3.5m from landmark student building cost
The property investment holding and development company said the proposed sale of the site at 151 London Road to Drum Property Group involved Drum entering a pre-let agreement with a tenant for the student accommodation to be built on part of the property.
At the time the company said that the pre-letting had “not yet occurred and there is now material uncertainty on the prospective tenant pursuing its interest in the location”.
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It also said then that it planned a “reduction in the overall consideration for the proposed disposal to £11.5 million [from £15m], payable to the company on completion in cash in the event Drum does not agree a pre-let to the prospective tenant”.
Drum is seeking planning permission for the site from Edinburgh City Council.
Caledonian said in its latest update to investors: “As a consequence of the impact of various restrictions put in place to limit the spread of Covid-19, the missives in relation to the proposed disposal have now been varied and a variation agreement was entered into on July 16 by the company and Drum.
“The amended missives have also extended the period for Drum to obtain a pre-let agreement for the student accommodation to be built on part of the property to June 30 2021.”
It said “the directors estimate that completion of the proposed disposal will take place in the first quarter of 2022”.
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