HALIFAX Bank of Scotland has struck a deal to buy the former Scottish and Newcastle brewery site in Fountainbridge, reportedly for more than £100 million.
The new offices would become the base for 6000 workers currently spread out across 16 different buildings in Edinburgh, although the banking giant would keep its imposing headquarters on the Mound, where senior executives would continue to be based.
The Scottish and Newcastle site in Fountainbridge has been greatly prized by developers because of its size and location within the city centre.
The plant closed down almost three years ago in June 2005, with the loss of 170 jobs, bringing to an end 150 years of brewing history on the site.
Since then its future has been the subject of much speculation.
Edinburgh City Council had even seen part of it as a potential new site for Boroughmuir High School up the road, which is too big for its boundaries and has been promised a new building as part of a five-school, £100m redevelopment.
However, the local authority could not compete with the financial muscle of the likes of HBoS.
It is understood the latest deal has gazumped at least two more developers who had spent years in negotiations with the brewer.
The scale of the HBoS plans are reportedly on a par with the Royal Bank of Scotland's £350m world headquarters in Gogarburn, which required special dispensation from city council planners when it was constructed.
It is expected the bank would vacate premises in Sighthill, Haymarket, Orchard Brae, and the Gyle, but not those in Livingston, Rosyth and Dunfermline.
Negotiations are in an advanced stage and HBoS has agreed an exclusivity agreement with S&N for the 12 acres of land, but has stressed that the deal has not yet been finalised.
If the purchase does go through, it would be five years before the first workers moved into the premises that would eventually become a global centre for HBoS's corporate banking, retail banking, international, and insurance and investment.
A spokesman said today: "I can confirm we have entered into an exclusivity agreement with Scottish and Newcastle to potentially acquire land at Fountainbridge South. We have identified a possible opportunity to potentially consolidate all of our Edinburgh businesses in one hub."
He added: "There are clear benefits to bringing together all Edinburgh-based colleagues in one city centre site.
"In addition to improved efficiency and effectiveness, HBoS colleagues would benefit from being based at a central location with good transport links.
"Should the plan come into being, it will take some time before the site would be ready to occupy. For a project like this, it could take up to five years before the first colleagues move in."
The move puts pressure on the city council to redraw an approved blueprint for the Fountainbridge area, which designates the land as being for mixed use developments, including homes, shops, and offices.
The full article contains 497 words and appears in Edinburgh Evening News newspaper.
