Waterfront rethink gets under way

Published on Thursday 19 March 2009 09:22

NEW plans are to be submitted for a key development site on the Waterfront following the collapse of the site's developer.

Gregor Shore had planning consent in place to build 230 luxury apartments at its Platinum Point site in Leith, as well as a further 155 at Anchor on Granton Marina, but work was put on hold when the company fell into administration towards the end of last year.

Now, the property firm appointed by administrators Deloitte to market the land has admitted that there is little demand for the proposed development in the current climate.

It is preparing to submit a new planning application for the site that's likely to feature more family homes rather than luxury flats.

Peter Allen, head of development at Savills in Edinburgh, which expects to eventually sell the Gregor Shore land to another developer on behalf of Deloitte, said: "The development market is fairly static so the chance of new developers coming along at the moment and building units is fairly slim.

"It may well be the case that we take a longer-term strategy with that (land] when the market improves.

"When the market starts to pick up we'll make sure that the site has a consent in place for something that the market wants to build."

As well as trying to sell the land, Savills has been appointed to sell the units that Gregor Shore had already completed.

It has said that average prices have been slashed on the site by up to a third and it has been achieving around six sales a month.

The new strategy comes as developers across the city have to mothball or redraw plans for sites as a result of the demand for flats drying up.

Forth Ports said earlier this week it was facing short-term difficulties finding development partners for its 30-year plan to revive Leith Docks, and revealed the value of its land had plunged by 222 million to only 60m.

Allan Lundmark, director of planning at Edinburgh-based Homes for Scotland, which represents companies building 95 per cent of new homes for sale in Scotland, said: "The housing market has changed dramatically as a result of the credit crunch.

"Whilst the demand for flatted accommodation is under particular strain, the demand for family housing is as strong as it has ever been.

"Development mixes will therefore have to be re-examined to ensure we are building the houses people need."