The two businesses have formed a joint venture company, Ladybank Developments, to deliver the project.

The 0.43-acre site is less than two minutes’ walk from Haymarket station, which has recently undergone a £25m regeneration. The area is currently undergoing extensive transformation, with the current office development being led by M&G Real Estate along with emerging proposals for Rosebery House by Aviva Investors.

The site already has planning consent for a 91-bed student housing development. However, a variety of propositions are currently under consideration.

Andy Richardson, group development director at London & Scottish, said: “We are delighted to have exchanged contracts on this site, and through our joint venture, Ladybank Developments, are looking for further opportunities. We were attracted to Haymarket Yards because of its prime location in the expanding West End, its excellent communications and its infrastructure. Edinburgh airport is only 15 minutes away and there are excellent rail links to London, Glasgow, and cities on the East Coast Line.

“Having developed and sold two high-end student residences in Leeds and Sheffield earlier this year for £90m, we saw the potential for this site as purpose-built student accommodation. However, recent developments in the surrounding buildings mean that there may be other attractive uses for the site. We intend to discuss the possible options with Edinburgh City Council in due course.”