Fears for state of Princes Street as replacement for amusements can't be found

A CONTROVERSIAL amusement arcade is to remain on Princes Street after a new tenant could not be found.

Nobles Amusements, in the former American Express office, had put its lease on the market earlier this year, but six months later the "to let" signs have been taken down with no buyer in sight.

The introduction of fruit machines on the Capital's main shopping thoroughfare got the go-ahead from the then-Scottish Executive in 2004, despite the objections of the city council.

But property agents said the failure to find a new tenant is a sign of the undesirability of the west end of Princes Street – and another indication of how the tough economic environment is causing companies to stay put.

Tim Appleton, a director of retail at property firm CBRE, said: "That unit is not straightforward. It is not actually suited to a lot of retailers. That end of Princes Street is also not really where retailers want to be. With the St James Centre, St Andrew Square and The Walk, it is around the east end that retailers want to be.

"From the corner of Castle Street on, it's all tartan shops, and a lot of units are listed so it is difficult to make any changes."

Tom Buchanan, convener of the city council's economic development committee, denied the failure to secure a new tenant was a sign of decline on Princes Street.

He said: "It is disappointing they were unable to let the lease. I don't know whether it was that it was an exorbitant price or whether there were other reasons, but we have managed to attract retailers in other parts of the street.

"Princes Street seems to still be doing okay. It is continuing to hold up."

Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said: "The east end of Princes Street has strengthened, while the west end has declined as a focal point for retail. This is partly due to the short-term effect of tram construction.

"As far as finding a new tenant right now, it is no surprise they have not found anyone, but in the longer term whoever does move there will be among the first to benefit from tram construction.

"We are in challenging times and some are being careful about where they invest. It is not surprising if they say, 'I want property on Princes Street but I will wait until the work is done'."

Andrew Bain, director of retail at Eric Young & Co, the agentsmarketing the Nobles property, confirmed it is no longer on the market and said Nobles was now deciding what to do with it.

He said: "There was interest but nothing that was ever concrete."

Nobody at Nobles Amusements was available to comment.