THE city council is confident American, Irish and Egyptian investors are still keen to buy blocks of Princes Street despite the global economic downturn.
Wealthy foreign investment funds have expressed a "strong interest" in buying and developing shops and buildings on and around the famous street, councillors are to be told.
The council is involved in the early stages of talks to seal deals with t
he as yet unnamed investors.
With billions of pounds at their disposal, such funds are said to be more resilient to the current economic turmoil than most other institutions.
The local authority is promoting its "string of pearls" vision to developers around the world, in the hope of rejuvenating Princes Street. The concept would see the street divided into distinctive blocks – the so-called pearls – and more use made of the top floors of buildings.
The Evening News revealed earlier this year that mega-wealthy Arab oil sheikhs had expressed an interest in buying every building on Princes Street's north side at an estimated cost of up to £1.35bn.
City leaders said the interest from the foreign funds – coupled with plans for an £850 million redevelopment of the St James Shopping Centre, and a proposed £100m regeneration of South St Andrew Square – meant the string of pearls concept was "becoming a reality".
Economic development leader councillor Tom Buchanan said: "Despite the issues we see in the global economy, funds continue to take a strong interest in Edinburgh and in the wide range of attractive investment opportunities which this city affords.
"Indeed, a number of exciting proposals are currently being brought to the table. The council remains thoroughly committed to working together with the private sector to reinvigorate the city centre and to deliver benefits to Edinburgh residents and businesses."
City development director Dave Anderson said "tentative legal structures are being explored" following the interest from the unnamed American, Egyptian and Irish investors.
He also said the positive negotiations had led the council to raise its estimate of the potential investment in the city centre over the coming years from £1bn to £3bn.
Alasdair Humphery, director of capital markets at investment and property firm Jones Lang LaSalle in Edinburgh, said the interest from the US was not unexpected, but he was more surprised by that from Ireland and Egypt.
Irish investment in the UK is currently "restricted" by the economic turndown, and he was not aware of Egyptian funds that would be interested in the Capital.
"American investors are looking at the UK, and Edinburgh would be very much in their focus," he said.
Mr Humphery added he would expect the wealthiest investors to target blocks rather than try to buy the whole street. "I wouldn't call into question their financial ability, but it would be a complex situation and a huge task," he said.
The full article contains 481 words and appears in Edinburgh Evening News newspaper.
