The former Co-operative building at 34-36 Channel Street has been a prominent feature of the town centre for many years, but has stood empty for an extended period.

The acquisition, which was funded by Scottish Borders Council, marks the beginning of a new phase in a project shaped by strong local partnership working, including South of Scotland Enterprise (SOSE), Energise Galashiels Trust (EGT), the Town Team and the wider community through the Galashiels Local Place Plan.

The planned redevelopment would bring the listed structure back into productive use, safeguarding the building and securing its future in creating new homes as well as flexible ground-floor spaces that may potentially be suitable for commercial and community-based activity, while supporting the wider regeneration of the town centre.

Since acquiring the building, SBHA has taken key steps to secure and protect the site. The property has been cleared of debris, safety checks have been completed, and essential measures put in place to safeguard the building and the public.

Scaffolding has been erected to allow roof access as planning begins for repairs to make the structure wind and watertight. Wind and watertight works are expected to be complete by the end of March.

The next stage of the project will involve appointing a design team to develop detailed proposals for the building. The team will work closely with SBHA, local partners, and key stakeholders to finalise layouts and specifications.

It is hoped that the design team will be appointed by the end of March and that initial proposals will be developed over the Summer.

The redevelopment proposals - which remain at an early stage - aim to create up to 17 affordable homes alongside three flexible units at ground-floor level facing Channel Street.

Julia Mulloy, chief executive of SBHA, said: “We’re pleased to have secured this important town centre building and to be working alongside local partners to take the next steps. The redevelopment proposals are about transforming place, promoting town centre living and growing the town economy. While plans are still developing, our immediate focus has been on securing and stabilising the building.

“Looking ahead together, we want to create high-quality affordable homes and support vibrant community and commercial uses that reflect the ambitions of local people and encourage town centre regeneration.”

The regeneration project is being developed in partnership with Scottish Borders Council, Energise Galashiels Trust and South of Scotland Enterprise. Working collaboratively, the partners aim to ensure that the ground-floor spaces are managed in a way that transforms place, supports the local economy, and delivers clear community benefit.

Ian Dalgleish, chair of Energise Galashiels Trust, said: “We are delighted to see this long-standing obstacle to town centre regeneration moving forward positively. EGT is actively engaged with project partners to work towards exploring community ownership in the Channel Street active frontage, benefiting social enterprises currently excluded from town centre locations as highlighted in the Local Place Plan 2025.”

Councillor Scott Hamilton, deputy leader of Scottish Borders Council, said: “I’m very pleased to see this important building on Channel Street coming back into use after so many years lying empty. This progress builds on the momentum created through the development of the Local Place Plan and the work of Galashiels Town Team.

“This milestone wouldn’t have been possible without the commitment of Energise Galashiels Trust, the ambition of SBHA and the work of Scottish Borders Council officers. Working together, we are supporting the creation of new homes, new opportunities and a more vibrant town centre for the future.”

The redevelopment will revitalise a prominent vacant building on Channel Street, creating new employment and volunteering opportunities through active ground-floor uses, increasing footfall and improving the visual appearance of the town centre. At the same time, it will bring a key listed heritage asset back into productive use, addressing its deteriorating condition and securing its long-term future.

The introduction of new homes supports town centre living and delivers much-needed affordable housing in Galashiels at a time of housing emergency. At this stage, it is anticipated that finalised proposals would go to planning in 2027, with construction to start in early 2028 and completion in Summer / Autumn of 2029.

SBHA has been working closely with Scottish Borders Council to finalise project, cost and programme information for inclusion in the Borderlands Town Investment Plan, following on from a shortlisting process of projects emerging from the Local Place Plan by the Galashiels Town Team.

This project will be one of four projects considered for potential investment via the Borderlands Inclusive Growth Deal Place Programme. Further updates will be shared with the community as proposals progress.