Property developer James Barrack has joined forces with institutional property investor M&G Real Estate to redevelop Aberdeen’s Capitol Theatre.
M&G, part of insurance giant Prudential, has acquired the derelict art deco performance venue for £4.25million.
The property was sold by property developer Carlton Rock, which is led by Alan Massie.
Mr Barrack said the deal meant an ambitious £30million plan to turn the historic building into offices would start “imminently”.
Plans to redevelop the 80-year-old theatre into a 10-storey office block were given the green light by planners in September.
Andrew Cowie Construction have won a contract to undertake the redevelopment which is forecast to take 18 months to complete.
Mr Barrack explained: “With the purchase of the Capitol now complete, we are able to move on the development of the building.
“Work to protect internal features is due to begin imminently with structural works to follow on quickly thereafter.
“At Knight Property Group we consider the ownership of this iconic building to be a great responsibility. I am extremely pleased with the plans which Keppie Design has developed for The Capitol and proud to be instrumental in saving and extending a sorely-neglected piece of Aberdeen’s history.”
This is the second joint venture between Knight Property and M&G Real Estate. They also have joint interest in Cityview Business Park in Altens, a development of five new-build office pavilions.