The Royal Bank of Scotland has confirmed plans to build a new multi-million-pound HQ following its successful take-over bid for the NatWest.

The new group's headquarters will be in central Edinburgh on a site which was once the home of the Scottish Office.

New St Andrew's House, called the "egg boxes" and vilified over the years for its ugliness, will be demolished to make way for the newly-enlarged bank group's HQ.

The building, vacated when civil servants moved to Leith, will be home to the UK's third biggest banking group.

'Elegant' replacement

The NatWest finally admitted defeat on Friday after a prolonged battle with the Royal and the Bank of Scotland.

With the detail of the £21bn take-over still to be thrashed out, it is not yet known how many people will be based in the new office.

However, the Royal says it will be a "very elegant" replacement for New St Andrew's House.

A spokesman said: "We are in discussions with the planning authority in Edinburgh about our plans for the building.

"There are a number of neighbouring properties we have to take into consideration and issues we have to sort out with the planning authority before we make public our plans.

"But we think it will be a large improvement on the building that's there at the moment."



City council leader Donald Anderson said: "We want to try to make this happen.

"It's getting rid of one of the biggest eyesores in the UK, so there will be a lot of active co-operation from the council."

The transformation will complete the renaissance of the east end of Edinburgh.

The area is already preparing for a shopping centre based around the new Harvey Nichols store, a £100m redevelopment of Greenside Place and a five-star hotel in the old Post Office building.

The bank's current registered office at 36 St Andrew's Square will remain.