Canadians in bid to revive Caltongate

Published on Wednesday 2 March 2011 15:00

A COMPANY which has never invested outside of the Canadian city of Calgary has been revealed as the firm that wants to revive the controversial Caltongate scheme.

Prism Developments is on the brink of a deal to buy up the site off the Royal Mile and develop it in line with the original plans, which bit the dust when previous developer Mountgrange collapsed in early 2009.

The company has only ever worked in and around the Calgary area in relatively small schemes but is now planning its first venture in Europe.

Property experts have expressed shock that a firm with no international track record is set to snap up one of Edinburgh's most valuable gap sites, which could make way for hundreds of homes, offices, a five-star hotel and conference centre and a series of shops and cafes.

Ali Ghana, who heads up Prism Developments, has confirmed in Canada that his company is ready to invest in the Caltongate site, which is being sold by Mountgrange administrator Deloitte on behalf of the company's biggest creditor, Bank of Scotland.

One property insider said: "We checked with contacts in Canada and they said that these guys are basically frontmen with a number of secondary developments in Canada.

"It is a small operation that goes out and looks for investors. That does not make them bad people but it means they have no real experience.

"For a scheme of this size, it is unusual that the bank would look to move it forward with someone who has no real track record. But as long as they get their money in they won't care."

The city council, which withdrew its own land and property assets from the site because of frustration at the amount of time it was taking Deloitte to strike a deal, could come to an agreement for the developer to snap up the assets again.

Councillor Tom Buchanan, the city's economic development leader, said: "Obviously we would like somebody to take the Caltongate site forward.

"We will not get into detailed discussions until we know what they have agreed with Deloitte. But if someone takes on the former Mountgrange land we will look to enter into discussions on the way forward."

Stewart Taylor, a director at the property firm CB Richard Ellis in Edinburgh, said: "It would be good for the city if someone is finally about to develop (that site]. The fact that there have been issues with other large developments, such as at Haymarket, means it would be a good thing if that scheme is about to come forward."