Developer drops Custom House hotel plan in favour of flats

A developer which had permission to transform a disused Aberdeen office block into a hotel will instead deliver flats at the city centre site.

Mandale Construction North had initially proposed to develop the Custom House, on the corner of Guild Street and Stirling Street, into a 105-bedroom hotel.

Councillors unanimously approved the plans in December last year.

But the Teesside-based property firm separately sought permission to turn the building into 46 flats and has now been granted approval.

The unoccupied building will have a shop on the ground floor as well as one and two-bedroom flats.

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.”

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”.

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