The former Debenhams department store on Edinburgh’s Princes Street, a prime location in the city, is now on the market. The decision comes after Legal & General, the current owner, abandoned their ambitious plans of investing over £50 million to transform the site into a luxury boutique hotel.

JLL, a property consultancy, is spearheading the search for potential buyers. The property, which covers a vast area of 116,000 square feet spread across nine floors, already has planning permission to be converted into a high-end hotel with up to 210 rooms. The location boasts a significant advantage due to its prime frontage on Edinburgh’s iconic street, attracting over 400,000 pedestrians weekly. Potential buyers have the opportunity to establish a hotel featuring a rooftop bar and restaurant, offering unparalleled views of the Princes Street Gardens and the historic Edinburgh Castle. The plans also envision a café, wine bar, and an urban spa and wellness center on the lower levels. The property is set to achieve commendable sustainability ratings, including the Breeam “excellent” rating and the Carbon Reduction Gold Standard as per Scottish technical norms.

Kerr Young, the head of UK national hotel transactions at JLL, highlighted Edinburgh’s reputation as the UK’s top-performing hotel market and one of Europe’s most coveted. He emphasized the exceptional hotel development opportunity that 109 Princes Street presents. Given the strategic design and density optimization done over the years, Young anticipates significant interest from global owner-operators, developers, and investors.

Legal & General had previously announced a major regeneration project in 2020, aiming to merge three separate listed properties on Princes Street into a hotel and urban hub, encompassing shopping, dining, leisure, and event spaces. They had secured planning permission from the Edinburgh City Council in the subsequent year, with construction initially set to start in 2022 and the hotel’s grand opening planned for 2024.

Roddy Smith, the CEO of Essential Edinburgh, had praised Legal & General in 2021 for their timely and high-quality proposals, emphasizing the need for new investments to rejuvenate the city center.

The former Debenhams store, located at 109 to 112 Princes Street in Edinburgh, is now officially on the market. The property, which spans approximately 116,000 sq ft over nine floors, has secured planning permissions to be transformed into a hotel with a capacity of up to 210 beds. Given its prime location on Edinburgh’s primary shopping street, the hotel is expected to benefit from foot traffic levels surpassing 400,000 pedestrians weekly.

The redevelopment plans for the property include the establishment of a rooftop bar and restaurant. Additionally, a café and bar are envisioned for the lower levels, complemented by a spa and wellness facility. Once the redevelopment is complete, the property is anticipated to achieve a BREEAM rating of “Excellent” and meet the Carbon Reduction Gold Standard as per Scottish Technical Standards.

Kerr Young, the head of UK national hotel transactions at JLL, reiterated Edinburgh’s status as the UK’s top-performing hotel market. He emphasized the unparalleled hotel development opportunity that 109 Princes Street offers. Over the years, JLL has collaborated with clients to refine the design and density of the proposed scheme.