Waterfront will survive the credit crunch say developers

Bosses at Waterfront Edinburgh spoke out following the high-profile collapse of fellow Granton developers Gregor Shore.

A joint venture between Edinburgh City Council and Scottish Enterprise, Waterfront Edinburgh is overseeing the regeneration project.

The Evening News has already revealed how the 2900-home project is running six years behind schedule because of the combined effects of the property crisis and credit crunch, with the completion date put back to 2023.

And the company admits it is now turning its attention to delivering "more financially viable" projects, including a new 200-bed hotel at Granton, to cope with the economic downturn. The value of land at the waterfront has dropped by more than half from 33 million in 2006 to 14.5m.

The news that Gregor Shore, which employed 120 people and had been working on luxury developments Granton Anchor and Platinum Point, had been forced into administration re-ignited fears that Waterfront Edinburgh may be next.

However, chief executive Colin Hunter said: "We are disappointed to learn that Gregor Shore has gone into administration.

"The economic situation has posed challenging conditions for property development and regeneration projects, but we remain committed to the regeneration of Granton and have amended our strategy and vision to adapt to the current climate.

"We are committed to building a sustainable community in Granton by encouraging the development of affordable family and key worker accommodation,

(and] remain confident that Waterfront Edinburgh can create a world-class sustainable waterfront the city will be proud of."

Waterfront Edinburgh recently announced it was hoping to develop a new hotel at the Harbour Road C site, off West Shore Road, as it was seen as a more attractive prospect for investors in the short-term.

It is also hoped that a hotel will encourage more businesses to invest in the surrounding area, with a spokeswoman saying the facility was badly needed.

The company also confirmed it was still engaged in advanced talks with a number of potential investors to ensure development could continue on the site.

Graham Bell, of the Edinburgh Chamber of Commerce, said: "Gregor Shore was a relatively small company which suffered from the current lack of cash. It would not have been without profit, but unfortunately couldn't get the cash which allowed it to keep going, and I do not think the same will be true of Waterfront Edinburgh.

"Once the banks start lending again and the company is able to move forward it will be a fantastic prospect."