Richard Branson’s Virgin Money has ‘paused for breath’ over its expansion into Edinburgh because of the impact of the credit crunch.
The mortgage provider was about to take 25,000 sq ft in Edinburgh Park to the West of the Scottish capital (Property Week: 10.08.07, Virgin’s money is on Edinburgh).
But the Norwich-based company has decided to delay the deal on the Kingston House at 4-5 Lochside Avenue until mid-2008 – when it will move in to launch a new product.
The company had been expected to get workers into the building by Christmas and the rent was estimated to be around £20/sq ft.
The pause has been described as ‘disappointing’ for the Edinburgh office market.
The city has been struggling to attract new occupiers and regularly losing out to Glasgow – where it is easier to get larger office developments through planning.