Owned by entrepreneur Charan Gill, the Quay is located five miles from the centre of Edinburgh on the A1 at the picturesque harbour of Fisherrow, overlooking the Firth of Forth.

The Quay currently operates as a venue for weddings and events with a restaurant and fitness spa, though business has suffered a sharp decline over recent years. Mr Gill has confirmed that a deal has been struck with care home developer Simply UK, which plans to invest £5 million into the conversion project once the application has been approved.

Gill confirmed that trading at the Quay Complex has been challenging over recent years, especially after the opening of numerous restaurants at The Fort.

He said: “Over the past year we have had to reduce staffing levels and opening hours and meeting rising overheads has been a struggle. Our research has shown that there is an over-supply of restaurants and bars in the area. There is also a Pure Gym opening at The Fort and this would have led to The Quay eventually closing with the loss of many jobs.

“Our research has shown that there is a shortage of compliant care home beds in the area and this conversion will fulfil a much-needed service, while creating some 40 jobs that are much needed in the area.

“The Quay is situated on the harbour and I believe that the calming views across the Firth of Forth make it an excellent location for a care home facility.”

Simply UK executive, Christopher O’Brien, added: “We are very excited about this project which we are confident will provide a much-needed valuable asset to the local community in Musselburgh.”