A developer who bought a Perth city centre building for more than £1 million intends to transform offices into flats.
The two-storey building on the corner of York Place and Caledonian Road has been purchased by Verimac.
Once home to an Iceland store, two large ground floor retail units are occupied by Lloyds Pharmacy and Co-op Funeralcare Perth.
Above this are serviced offices, which Verimac intend to develop into two-bedroom flats for rent.
It comes after another seven-figure investment by Verimac into the long-time vacant Clydesdale Bank headquarters in South Methven Street.
This is now home to Dental Care Perth, Salmoni’s Opticians and Scotland’s first SureSmile Studio. A dentistry skills centre will open shortly.
Confidence in Perth city centre
Verimac director Brian Blair says the latest buy shows the company’s confidence in Perth city centre.
He said: “Many developers seem to be shying away from city centre developments in the current economic climate.
“However, the success of the former bank project shows that the right property in the right location will continue to attract quality tenants.”
“That development has attracted four high quality businesses which have either relocated or are new to Perth.
“If the right development opportunity comes along, I believe city centre locations continue to be an attractive investment, whether it is in Perth or further afield.”
Plans to develop building
The 15,000 square foot York Place building was placed on the market last year by a London property investment company.
For Mr Blair it is the perfect combination of two secure long-term tenants providing cashflow with a development opportunity.
The property, which neighbours the AK Bell Library, also includes a third unit which is currently vacant.
“These are two long-term, blue-chip tenants and that was part of the attraction,” said Mr Blair.
“They won’t be impacted by the change in ownership.
“Currently we are in negotiations with a local business keen to move into the only vacant ground floor unit.
“The upper floor is laid out for 10 serviced offices.
“In the near future we will be applying for change of use consent to create five, high-end, two-bedroom apartments for the letting market.”
The building was marketed for sale by chartered surveyors and property consultants Graham and Sibbald.
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