The project has received an investment of more than £50m from the Legal & General UK Property Fund, and it is envisaged that the plans will help realise the council’s long held ambitions to create a café culture on the city's famous Princes Street.
Billed as 'a major new destination in Edinburgh, delivering the footfall Princes Street needs to continue to thrive', the proposals also include plans for a shopping centre and ‘fine casual’ dining restaurants.
“As normality begins to return around the world, it has never been more important that we support the UK’s cities in continuing to adapt, change and innovate; supporting their economic recovery and continuing to promote them as attractive places to live, work and visit," says Matt Jarvis, senior fund manager at Legal & General.
"Our vision for Princes Street will do just that, whilst securing these important buildings as a vibrant hub in the centre of one of the world’s great cities.
"With some of the best views anywhere, looking directly on to Princes Street Gardens and Edinburgh Castle, our aim is to create a space which all Edinburgh and Scottish residents can enjoy, whilst continuing to attract quality tourism to the city.
"For the L&G UK Property Fund, this represents an exceptional opportunity, in line with its strategy to diversify into more operational and alternative assets, and offering a platform to drive forward value for investors."
Pre-Application Consultation proposals will be submitted before the end of the month, with an online public consultation taking place, rather than a public event due to Covid-19 restrictions.
A planning application will follow the consultation.
The opening of the development will depend on the timescale for any planning approval.