Michael O’Flynn’s Tiger Developments is vying to remain involved in the development of The Haymarket in Edinburgh, with the prime site currently up for sale.
The Irish developer has a pre-emption clause, meaning it has the option to buy the site at the price of the top bid that comes in for the project, which is expected to have an end value approaching £300m.
It has appointed CBRE to advise it to undertake discussions with prospective bidders with the view of partnering up.
Tiger is the current development manager for the site, which is being sold by under pressure Scottish construction firm Interserve.
As a result of the clause, bidders may look to agree with Tiger to retain it as development manager should it be successful or agree a deal to cancel the pre-emption right.
It is also possible that the pre-emption right may not have a material impact if Tiger cannot raise funding or find a partner to match the eventual top bid.
Widely considered the country’s best development opportunity, the three-acre site on Morrison Street is expected to attract bids of close to £40m.
It has consent for more than 350,000 sq ft of offices across three buildings, two hotels of 172 and 190 beds and more than 40,000 sq ft of retail and leisure and sits next to Haymarket station.
The site has previously received interest from a number of parties including Evans Randall, Tristan Capital, Artisan, Ediston and Rockspring.
Revenue per available room in Edinburgh is the highest of any regional UK city at £86.41, compared to a national average of £54.73, according to JLL.
Office rents are at their highest ever level in the city, with deals being negotiated at rents of close to £36 per sq ft with vacancy levels below 4%.
Formal marketing of the project began last week through Dougray Smith and JLL. Bids are expected to be called for around the end of April and a preferred bidder selected by the end of June.
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