With a gross development value of circa £280 million, The Haymarket site has planning permission for the development of three Grade A office buildings totalling 350,000 sq ft, provision for 40,000 sq ft of retail and leisure space, a 190-room hotel and a 172-room aparthotel.

The site was previously owned by a joint venture between Interserve and Tiger Developments.

Dougie Sutherland, executive director at Interserve, said: “The sale follows a strategic review of the project and is part of our overall transformation plan, allowing us to realise our investment at a time that is right for both the development and the market.”

The acquisition extends M&G Real Estate’s office development portfolio in Scotland and follows deals to fund the construction of Quartermile 3 and Quartermile 4 Edinburgh, in addition to plans to provide a £100m best-in-class workplace at The Grid in Glasgow, which has already been awarded Scotland’s second ever WiredScore Platinum rating for digital connectivity.

With environmental excellence and well-being at the forefront of the design, The Haymarket will be built to the highest sustainability standards, with state of the art digital infrastructure, technology and connectivity.

The site provides an opportunity to expand the Scottish capital’s growing financial quarter - the Exchange District – which is located next to Haymarket train station, connecting passengers to Glasgow and is also close to tram services serving Edinburgh airport.

Chris Perkins, head of business space, M&G Real Estate, said: “With the current supply/demand dynamics, bringing 350,000 sq ft to the market will reinforce the Exchange District as a prime hub for business in Europe. Whilst Edinburgh remains an attraction for heritage tourism, its rejuvenation as a business and leisure location over the past few years rightly places it amongst Europe’s leading cities.

“As a provider of investment solutions across geographies, sectors and product types, this investment reinforces our strategy of acquiring assets with potential for sustained income, strong capital appreciation located in targeted growth zones.”