Global real estate investment manager Valad Europe has entered into a joint venture with Gloag Investments to develop a new aparthotel in Edinburgh.
Gloag Serviced Apartments acquired Kintore House, a vacant office in Queen Street, from Lonestar and Hudson for £6.3m. Scottish millionaire Ann Gloag, co-founder of the Stagecoach Group, is a director of Gloag Investments.
The aparthotel will comprise 82 apartments over four floors and will be operated by BridgeStreet Global Hospitality under its new Mode brand. It will be the third Mode property alongside sites in Washington and Paris.
Simon Marriott, head of investments and UK real estate at Valad Europe, said: "The purchase of this asset at the heart of Edinburgh's central business district, close to both commercial and leisure destinations, represents a superb opportunity to benefit from the ongoing strength of Scotland's capital and the ability to generate attractive ongoing income and value once the refurbishment is complete.
"As part of its global roll-out of the Mode brand, BridgeStreet is identifying quality buildings in key gateway cities to convert them into stylish apartment style accommodation. The Mode brand combines the flexibility and convenience of hotel style service and accommodation with the character of their guests' own homes."
BridgeStreet chief executive Sean Worker said: "Where we operate we aspire to be part of the community, work with local businesses and recommend the best establishments. Each Mode building will offer a bespoke, unparalleled experience to our guests by providing them with high design and comfort."
Ann Gloag added: "We are delighted to be bringing BridgeStreet to the capital in what will be their first bespoke building in Scotland."
Rydens advised the purchasing joint venture and Knight Frank acted for the sellers.