We're still building for the future

Published on Thursday 9 October 2008 09:59

THE boss of the city council's development company today said it is still committed to developing on all of the sites it owns.

EDI has had to put two of its projects, at Fountainbridge and Granton Waterfront, on hold because of the housing market downturn, but acting chief executive John Mark Di Ciacca today insisted that the company remains committed to developing all eight of its Edinburgh sites.

It is currently refining some of its plans for the redevelopment of the Craigmillar area, with a new masterplan featuring a larger ratio of affordable housing expected to be published later this year.

And it is in talks with Royal Bank of Scotland over gaining funding for its joint venture with the Burrell Company for a mixed use development on the former Fountain Brewery site.

It is also bucking the housebuilding trend by looking at the option of increasing its staff from the 30 it currently employs.

Mr Di Ciacca said: "We cannot just presume that everything is the same as it has been and the world hasn't changed. Mortgages are hard to come by, people are finding it difficult to sell houses and trade up, and people are finding it difficult to move into Edinburgh.

"We have curtailed our activity but we have not stopped it. We are continuing to get sales."

He added: "There is no property company in Britain not affected by the current climate. But we are one of the few that might expand in the next year rather than contract."

At Craigmillar there are three residential projects currently on site, with another two expected to be activated next year.

EDI is currently drawing up a full masterplan for the next stage of its redevelopment of the area and is in talks with housing associations and other groups about increasing the number of social rented, shared ownership or housing association accommodation.

At Fountainbridge, it is now hoping to get RBS to approve a business plan that could see work start early next year.

EDI this week said that its profits in the 2007 financial year dropped to 1.77m, compared to 2.83m in 2006. It said the figures were partly because of the amount of development work under way.

Councillor Gordon Mackenzie, chairman of EDI, said: "Looking forward, and despite those difficult market conditions, we can be reasonably optimistic."