Barclays has announced a £21 million joint funding package for CALA Homes and Evans Property Group to support the development of 84 residential apartments located in the grounds of the Playfair designed Donaldson’s School in Edinburgh.

After years of planning, the funding will assist in delivering phase one of the striking development of high-end homes, known as the Crescent, in the grounds of the original 19th Century building.

The development has started marketing the first release of properties which has already generated a substantial amount of interest from both local and over-seas markets.

The building of Donaldson’s started in 1842, after its benefactor, a local newspaper publisher James Donaldson, bequeathed his estate to found a hospital for children after his death. It was designed by renowned architect William Henry Playfair, whose other landmark buildings in Edinburgh include the Scottish National Gallery on The Mound and Edinburgh University’s Old College. The building came on to the market after the Donaldson’s School announced it was to relocate to a new site in Linlithgow in 2008.

Neil Stoddart, interim group finance director of CALA Homes, said: “We are delighted to partner with Barclays in the development of this historic site in the heart of Edinburgh’s West End. The Crescent at Donaldson’s combines ambitious architectural style with innovative contemporary design to create a selection of exquisite apartments set within a UNESCO World Heritage Site.”

Nick Mayberry, head of real estate for Northern & Scotland region at Barclays, added: “Edinburgh’s residential property market is currently experiencing exceptionally high demand, and this deal demonstrates Barclays’ continued commitment to innovative, forward-thinking developers across Scotland.

“We worked hard to understand the specific needs for this project which, coupled with our successful track record in the property sector, meant we could provide a tailored funding package to help build one of Edinburgh’s newest and most exclusive estates located in one of its most famed sites.”