HBOS has entered into exclusive talks to buy Scottish & Newcastle’s former brewery in Edinburgh for more than £100m.

The bank is planning to create a consolidated site at the site in the Fountainbridge area of the city – the increasingly popular Edinburgh office district.

Exclusivity agreement

A spokesman for HBOS said: ‘I can confirm we have entered into an exclusivity agreement with Scottish & Newcastle to potentially acquire land at Fountainbridge South.

‘We have identified a possible opportunity to potentially consolidate all of our Edinburgh-based businesses in one hub at Fountainbridge.’

Competition for the site

It is understood that Scottish & Newcastle had been in talks with two other joint venture partnerships over the site – Springside, a joint venture between Grosvenor and AMA, and BurEDI, a partnership of house-builder Burrell and Edinburgh City Council’s development company EDI.

Springside submitted plans last for October for a mixed-use scheme including around 650 homes at a nearby former Scottish & Newcastle site.

Buredi is developing 170 homes at the former Brewery social club.

Jones Lang LaSalle is advising HBOS.