NEW images revealing how the site of Edinburgh's massive Old Town fire will be transformed by a new hotel development have been unveiled.

Developers masterminding the £40 million scheme, which will replace the gap site, have shown how new links would be created between the bustling Cowgate and South Bridge thoroughfares.

Allan Murray, a capital-based architect who is designing the SoCo scheme for developer Whiteburn, has planned a series of new steps and courtyards for the scheme. The plan will also see the creation of shops, cafés and restaurants.

Whiteburn is said to be close to striking a deal with a preferred hotel operator for the site, with a full planning application for the scheme expected to be submitted within the next few months.

However, the developer has shelved plans to create a new public building – such as a concert hall, cinema or gallery – on the site. New housing, which the city council wants to see created in the area, has also been ruled out.

Whiteburn, which was behind the creation of the Tun building near the Scottish Parliament, has already held discussions with groups including Historic Scotland and the Edinburgh World Heritage Trust to build support for its proposals.

John Shepherd, chief executive of Whiteburn, said: "SoCo will become a destination for people to stay, work and relax within a vastly improved environment, providing jobs and hopefully kick-starting the regeneration of the South Bridge/Cowgate area."

Mr Murray, who is also the chief planner for the Caltongate development near Waverley Station and is working on plans to replace the St James Centre, said: "SoCo will be a wonderful addition to Edinburgh's Old Town, with the steps and courtyards reconnecting Chambers Street and South Bridge directly from the Cowgate."

Whiteburn became the official owner of the site in 2006, following 18 months of negotiations with the owners of businesses which had previously occupied land on the site of the fire.

The area was previously home to a host of shops, offices, studio spaces, pubs and clubs, including the Gilded Balloon comedy venue, Bridge Jazz Bar, La Belle Angèle nightclub, the Leisureland amusement arcade and Edinburgh University's school of informatics.

More than 150 fire engines from across central Scotland helped to tackle the flames for a period of 52 hours until the fire was extinguished shortly before midnight on 7th December, 2002. The blaze, which destroyed several buildings and cost millions of pounds in damage, was blamed on a faulty fuse box.

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