Sainsbury's waiting for First Bus to leave

A £20 million development by Sainsbury's for a 20,000sq ft supermarket in Dalkeith on a site occupied by FirstGroup is being stymied because the bus operator can't find another site for its bus station.

Moving out of the bus station to make way for the supermarket was part of the deal announced over a year ago, and Sainsbury's – with at least seven other stores scheduled for Scotland – is said to be very anxious to get on with the Dalkeith project.
The approved plan was submitted by the Glasgow-based Forrest developments in June last year for a store over two levels, with 26,000sq ft devoted to sales and 10,000sq ft on an upper level for leisure outlets and offices. The plan also included 251 car parking spaces.

Tom Johnston, head of retail in Scotland for Colliers CRE, which is acting for Sainsbury's, said the supermarket was frustrated at the lack of progress.

He added: "They are, in fact, busting a gut to get on with this. Midlothian Council is desperate to get on with it.

"This will be a major regeneration for Dalkeith but we can't move on with it until we find another location for First Bus and we are having no luck so far."

The site has been zoned for retail use but First Bus has more than eight years of a ten-year lease left on the property so can bide its time before moving out. A spokesman said: "We are working on identifying an alternative option."

Tom Johnston says other projects by Sainsbury's in Scotland are making better progress – it is going to open in Kelso, it has planning consent in Glenrothes, it is about to lodge planning applications in Crieff and Nairn and will relocate its Braehead outlet, part of the Braehead shopping centre, into a standalone store.

Planning authorities these days are looking less favourably on out-of-town developments in the realisation that their growth has impacted badly on town centres. Dalkeith is a typical example of the many Scottish towns that have been hit by out-of-town shopping developments.

But not all out-of-town developments are bad news and they can crop up in unexpected places.

One example that has just been given the planning go-ahead is a £5 million project by Perthshire-based Braemore Estates to develop what it calls Juniper Village at Tomatin in Inverness-shire close to the Tomatin Distillery.

The proposed development is on the A9 14 miles south of Inverness on the former Little Chef site and it will include a mix of leisure and retail outlets.

The plans include a 42-bedroom hotel a 160-seat restaurant, a five-unit shopping district and a whisky visitor centre.

The site has just been cleared and work is getting under way, with 75 jobs being created.

William Frame, managing director of Braemore Estates, says: "Our vision is to create a thriving business at this very busy location.

"This is a prime site, with an average of 8,140 vehicles passing each day, and our aim is to add to the Highland experience with a development which represents the very best that Scotland has to offer. We are now seeking investors and occupiers with specific operational experience to explore new opportunities with."

That means consideration will be given to joint-venture proposals for the hotel, restaurant and retail.

Braemore Estates, set up by Frame in 1987, has a portfolio of £30 million in commercial and residential properties, all producing rental income. It is developing property not only in Scotland, but also in London, targeting Mayfair, Knightsbridge and South Kensington.

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