The work will see a former derelict abattoir complex on Largo Road demolished within six weeks and replaced by a new 65 bedroom Premier Inn and a Mark & Spencer’s Simply Food.

Since obtaining planning consent in January 2014, Crucible (St Andrews) Ltd have been going through the process of satisfying all the conditions set by Fife Council; obtaining all necessary building warrants and completing the detailed design of the development. The Michael Laird Architects designed scheme is due for completion in the early summer of 2015.

Commenting on the progress to date, development company spokesman Brian Robinson of Crucible (St Andrews) Ltd said: “We are delighted that the people of St Andrews can now see something coming out of the ground on this site. We have been involved in the project for more than two years and it is extremely satisfying to see the construction of the development commencing. A huge amount of effort has gone into getting to this stage and we are hopeful that the construction phase of the development will progress smoothly.”

The development is seen as one of the most attractive property investments in Scotland and Crucible (St Andrews Ltd) has signed a funding agreement for the development with clients of Aberdeen Asset Management.

Commenting on the acquisition of the development, Aberdeen Asset Management’s assistant fund manager, Laura Hughes, said: “We are delighted to have been able to fund the development in partnership with Crucible (St Andrews) Ltd. The location of the site and tenant line up with both Marks & Spencer’s and Premier Inn signed up on long term leases, means this is an extremely attractive investment for our clients.”

Stuart Orr of FB Burnett, advising Aberdeen Asset Management, added: “The strength of St Andrews’ tourism is well understood and it is clear that with the average cost of a hotel room at nearly £170 per room per night, St Andrews needs a hotel operator such as Premier Inn to provide a more affordable offer, and hence we expect it to trade well. Similarly, the demographic of St Andrews is such that we expect Marks & Spencer will trade well from this location. This therefore represents a very robust and defensive acquisition for Aberdeen Asset Management’s client and I look forward to seeing the completed development.”

Crucible (St Andrews) Ltd appointed ISG Construction Ltd to build the development on its behalf.

FG Burnett acted on behalf of Aberdeen Asset Management whilst Crucible were advised by Capita.