Liquid asset may become a New Amsterdam in Leith

Published on Monday 18 May 2009 22:02

IT COULD provide the most unlikely of boosts for Edinburgh's beleaguered property market. Several acres of riverbed is the unusual lot set to spark a bidding war when it comes under the hammer next week.

Experts believe demand will be high, despite the economic downturn, because the sale could trigger the creation of dozens of floating homes and offices in one of the most fashionable areas of the capital.

They insist that the Water of Leith has the potential to become home to the kind of floating villages found in the likes of Amsterdam or Paris.

The 6.5 acres of riverbed, which run from before Great Junction Street to the heart of the Shore area of Leith, is being sold by a company which has owned it for more than 20 years.

A property industry source said: "I would expect this sale to generate well in excess of 1 million even in the current climate. It's very likely to appeal to investors because of the huge potential to develop on the water."

The only stumbling block is that any vessels will have to be transported by land to the banks of the river, as it is sealed off from the docks by a low bridge.

The riverbed is being sold by the company Water of Leith 2000. It brought Ocean Mist, a former Royal Navy steamer, to Leith in the mid-1980s and has added another three barges over the past few years.

But it has decided to put the remaining parts of the riverbed up for sale, most of which were bought over 20 years ago from the dock operator Forth Ports.

Shaun Vigers, the director of SVA Property Auctions, which is hosting the sale next week, said: "The most obvious use for someone buying the riverbed is to do something with it, either for houseboats or floating offices, similar to the kind of thing you get in places like Amsterdam."

Scott Mitchell, of Edinburgh Commercial Property, said: "The current owners have planning permission for three other barges further up from the ones they already have, but there's nothing to stop anyone else applying to the council for more.

"There are potentially suitable sites for both commercial units and residential boats along the riverbed. This kind of thing doesn't really exist anywhere in Scotland at the moment; you only really see a few houseboats or canal barges."

Water of Leith 2000 was formed by a consortium of businessmen in the mid-1980s, including Fred Multon, Fraser Mills and Ron Kitchin, the father of Michelin-starred Leith chef Tom, owner of The Kitchin.

Mr Kitchin said: "There is no doubting the potential of this area, and we have shown how the concept can work with the success of the boats in the outer basin. But we're all in our sixties now and feel now is the right time to go ahead with the sale."