Funding approved for Egyptian Halls redevelopment plans

Funding to progress a potential redevelopment of a derelict category A-listed building in the centre of Glasgow has been approved in a bid to bring it back into use.

Glasgow City Council has given the green light for up to £600,000 in grant funding to support the early stages of plans to turn the Egyptian Halls, designed by legendary Scottish architect Alexander "Greek" Thomson, into a hotel.

The four-storey building on Union Street, near Central Station, was built in the 1870s and has been on the buildings-at-risk register since 1990.

The funding package will be used to develop the council-backed plans before a possible compulsory purchase of the building.

Under the council's chosen plans, Edinburgh-based property developer Ediston is seeking to convert the ground floor - currently home to shops - and first floor into leisure uses, with the vacant upper floors becoming a hotel.

Glasgow City Council's funding package will help to create a business case for a compulsory purchase order (CPO).

CPOs are legal mechanisms that allow councils to purchase vacant buildings to bring them back into use.

The council's housing and built heritage convener Councillor Ruairi Kelly previously described the CPO process as "lengthy and com­plex" and no timeline has been set for the completion of the Egyptian Halls purchase.

Despite this, the funding represents a major step forward in bringing the building back into use.

The fund is expected to be used by Ediston to carry out work, such as engineering and property surveys, that will further prepare the building for a CPO transfer.

It has been drawn from the council's £10m "Bringing Property and Land Back Into Productive Use" budget.

After the decision, Kelly said: "This award is another key stage in the work to bring back to life an outstanding example of Glasgow's built heritage.

"The funding will help to support the development of an exciting proposal to return what is a long-term vacant and deteriorating heritage building back to full and productive use.

"The redevelopment and repurposing of fantastic historic buildings such as this is a key part of our strategy to create even more attractive and remarkable places in our city centre."

The compulsory purchase plans are being challenged by the current owner, Dundee businessman Derek Souter, who owns the upper floors of the halls.

Through his two companies he has been in long-running discussions over the building and disputes over its future.

In response to the funding approval, he has called on the council to consider a joint venture between Ediston and his two companies – Union Street Developments (USD) and Union Street Investments (USI) – "that recognises their respective interests".

He also called on the council to come to an agreement on "appropriate compensation" for the amount spent on maintaining the building since he took ownership.

"The Egyptian Halls is a world-renowned architectural masterpiece that deserves a viable regeneration strategy, transparent decision-making and fair treatment of its lawful owners," he said.

"GCC must demonstrate, through evidence, that its proposed course is reasonable and financially justified."

The grand, terraced building was built in 1872 as a commercial hub for a Glasgow-based iron manufacturer.

For years, the facade has been covered in scaffolding described by the council as having caused "social and economic blight" to the city centre.

Earlier this year, the council issued a defective building notice, allowing structural work to be completed, briefly unveiling the hall's Union Street frontage for the first time in more than 15 years to facilitate stonework restoration.