A BOUTIQUE hotel development in a converted Victorian schoolhouse in Edinburgh, which has been named The Canongate, has been put up for sale for £8 million.

Developer Edinburgh Castle Ltd has appointed commercial property consultancy Knight Frank to market the property.

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Knight Frank said that, following a full renovation and fit-out led by contractor Redpath, the development celebrated the building’s original features, including the school house facade and double-height atrium.

It added that the property, in the heart of Edinburgh’s 7.5-acre New Waverley regeneration project which includes offices, housing, and leisure and retail, was expected to be complete and ready to hand over to a new owner in June.

The former Victorian schoolhouse will feature 21 aparthotel-style bedrooms and commercial units spanning two floors, which Knight Frank declared would be “ideal” for a bar, restaurant and outdoor terrace area.

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Knight Frank noted that Edinburgh Castle Ltd had forecast operating rooms revenue at £1.4 million per annum. It said this represented a potential yield of 12.2 per cent after operation costs.

Neil Scott, partner at Knight Frank in Edinburgh, said: “New Waverley has...revitalised a once largely empty part of the city. The Canongate is an attractive opportunity for a hotel operator or investor to be part of what is fast becoming one of the most successful regeneration schemes in the city.”

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Jim Cummings, director at Edinburgh Castle Ltd, said: “We’ve seen an increase in footfall as the regeneration takes shape and, with the new government office bringing 2,900 civil service jobs to the area, we can expect this to continue.”