Ambitious plans to breathe new life into the former St Stephen’s RC Primary School building in Blairgowrie have been abandoned.
The move comes after those behind proposals to turn the B-listed building into eight homes seven one-bedroom flats and a studio apartment were unsuccessful in a bid to secure £400,000 in funding for the affordable housing project.
An application for the cash was made last year to the Scottish Government’s Town Centre Empty Homes Fund, which was relaunched as a grant and loan scheme.
Developer Graeme Carling said that without the cash injection the John Street scheme, which had already been given planning permission by Perth and Kinross Council, was no longer economically viable.
Mr Carling, who stated his company had already invested heavily, said: “It is very frustrating but we are having to put the property back on the market.
“We had applied to the Scottish Government for grant and loan funding for the development and after months of delays were finally informed last month that our application had not been successful.
“We have since explored possible alternative options for the conversion with Perth and Kinross Council but unfortunately it is not going to be financially viable to turn this property into affordable housing, which is what we do.”