Negotiations are under way for a major hotel chain to buy one of Dundee’s most iconic waterfront buildings.
The Grade A Customs House is up for sale and a major hotel has expressed interest in purchasing the 28,000 sq foot building.
The hotel could have as many as 80 bedrooms, a restaurant and would be just 300 yards from the planned Victoria and Albert Museum.
The interest in acquiring the building from current owner Unicorn Property Group is so strong that the sale is in a period of lockout, meaning negotiations will not take place with any other parties until a final decision has been reached.
Unicorn Property Group director Tim Allan said, “During this period, up until the end of August, we are happy to show the building to any party but we won’t enter into any serious negotiations.
“A major hotel chain is currently looking at the Customs House in due diligence.”
Unicorn describes the building as the “best hotel opportunity” in Tayside and Mr Allan said it will complement the city’s ongoing waterfront redevelopment.
“We think the waterfront is progressing very well and what it needs is a bit more of an offering in the hotel and leisure retail area and we are confident that the colleagues we are trying to work with will achieve this.”
Unicorn Property Group bought the building as part of land it purchased from Forth Ports in 2006. The building also comes with 40 parking spaces.
“We are primarily residential and commercial office developers and we have no real desire to run a hotel, which is why we are looking for someone else to come in,” said Mr Allan.
He added that a quality restaurant would be “fundamental” to the success of any hotel development.
Customs House was built in 1842/43 by Dundee harbour engineer James Leslie and John Taylor, surveyor of buildings for HM Customs.