A significant development site in Glasgow city centre, Dale House on West George Street, has been brought to market with an asking price of £4 million. The property holds planning permission for a 276-bedroom hotel, alongside potential for alternative residential or commercial developments.
The site, located in a prominent position close to Queen Street station and George Square, was acquired by Arora Group last July as part of its purchase of Bloc Hotels. However, Arora Group has indicated it does not intend to proceed with the development itself, leading to the current sale.
The approved scheme, designed by Norr, envisions a substantial hospitality offering. Gavin Wright, founder of Enterprise Hotels & Hospitality, provided details on the existing consent. He stated:
“In Glasgow, the development site at Dale House is in the heart of the city on West George Street and has consent for 276 rooms in an existing basement, with newly built ground and upper floors.”
Mr Wright further elaborated on the diverse accommodation options outlined in the plans. He added:
“The accommodation approved is for a mix of standard hotel rooms, studio apartments, one-bedroom and two-bedroom apartments.”
This flexibility could appeal to a wide range of potential developers looking to contribute to Glasgow’s evolving urban scene, similar to other major projects like the Glasgow student accommodation developments.
Beyond accommodation, the site also includes substantial retail space. Mr Wright confirmed:
“A large retail space is also available at the ground and basement levels, extending to 14,109 sq ft, with a further eight storeys above.”
This combination of hospitality and retail could enhance the vibrancy of this central Glasgow location.
The Dale House building has a notable history within the city. Originally constructed in 1982 by Royal Bank of Scotland, it served as a cash storage and counting facility. The premises have stood vacant since 2009, following the bank’s departure.
Ownership of the site has changed hands multiple times over the past decade and a half. In 2010, LGIM Real Assets, a division of Legal & General Investment Management, acquired the property. An international hotel chain attempted to convert it into an aparthotel in 2011, though this bid was ultimately unsuccessful.
The same hotel chain later purchased the building in 2019. Planning permission for a seven-storey hotel, including retail space, was granted in 2020. Subsequent amendments to these plans were approved in 2023, offering greater adaptability for future use of the space. Such developments are crucial for the continued growth of the Scottish economy.
The current marketing of Dale House highlights its potential for various uses, subject to further planning consents. Its strategic location, in an area well-served by public transport and close to major city attractions, makes it an attractive prospect for developers considering either new commercial ventures or much-needed residential units. The property market shows signs of stability, potentially encouraging such investments. For information on local planning regulations, interested parties can consult the Glasgow City Council planning portal.
The sale of this significant city centre asset presents an opportunity for a new developer to shape a key part of Glasgow’s urban fabric. The property is being marketed concurrently with another site in Birmingham, indicating a broader portfolio adjustment by Arora Group.
The demand for prime city centre locations remains strong, as evidenced by ongoing interest in properties across Scotland. The future of Dale House could see it transformed into a bustling hotel, a modern residential complex, or a mixed-use commercial hub, contributing to Glasgow’s dynamic appeal as a destination for both residents and visitors, as highlighted by organisations like VisitScotland.
