Developers have won planning approval for a student housing complex on a prominent site near Edinburgh’s Holyrood Park.

The £24m Abbey Lane development on the site of an industrial estate will include a 298-bed student complex and 66 new homes.

Artisan Real Estate will develop the homes on the site, which it acquired in 2016.

It sold an option to acquire the site to Unite Student Homes in July.

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Proposals for student housing developments in Edinburgh have provoked controversy amid claims the city should encourage the provision of more affordable housing and community-led developments.

Artisan’s group property director, Nick Hayes, said: “Throughout the planning process, we have engaged with the local community and are looking forward to continuing that important work during the development phase of this project. Edinburgh has an undersupply of purpose-built student accommodation.”

Separately, an industrial property in Edinburgh has been sold in a multi-million deal that signals investors see potential in the Scottish market in spite of the uncertainty caused by the coronavirus crisis.

The building on the Sighthill Industrial Easter was sold by Vardy Property Group to Westerwood Properties for £3 million.

It is let to Thornbridge Timber, the Ashley Ann kitchens business and the Young Spirits bottling operation.

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The rental income will allow the buyer to achieve an initial yield of around five per cent on its investment.

Property consultancy Galbraiths advised Vardy Property Group.

 Will Sandwell, Investment Partner at Galbraith, said: “Following a number of other high profile industrial sales in Edinburgh, our client felt the time was right to exit this development.

“Offering a strong income profile from modern stock in a prime location allowed us to identify the demand for such an investment without formal marketing.  The transaction was able to conclude within four weeks.”

Vardy developed the building on a site that housed a redundant 1970’s office building.

Westerwood is run by Craig and Bruce Walker, who are veterans of the property development and housebuilding businesses.