Developers have ditched plans to turn a historic Aberdeen building into a hotel have now been granted permission to build flats instead.
Teesside-based property firm Mandale bought Custom House, next to the Tivoli theatre, for £1 million at an auction in London last year.
The company initially applied to Aberdeen City Council to convert the building into a 106-bedroom hotel, amid interest from several potential operators.
But now it has now opted to instead create 46 flats at the 28 Guild Street site, which the local authority believes will “play a part in attracting people to live in the city centre”.
The unoccupied seven-story building, with vacant former offices inside, will have a shop on the ground floor as well as one and two-bedroom flats.
The council decided to grant planning permission after initial documents were submitted last July.
According to the council’s letter to Mandale Homes, stating its approval of the proposed plan, the development will “help achieve the vision of increasing the number of people living within the city centre”.
A council statement added: “The site’s accessibility is good and a suitable level of car and cycle parking would be provided.”
Mandale plans to start giving out keys to the flats by early summer.
Operations and sales director, Richard Harriman, said: “The city is rich with heritage, and it has been a privilege to work with the council to deliver a residential scheme that turns its past into its future.
“The council has a fantastic vision for the city’s future, and we are proud to be a part of it.”
There are no set plans for the building’s ground floor unit, and Mandale Homes is “taking inquiries from a number of different businesses to take the space”.
