Waterfront firm vows to build on despite £6m loss

By Edinburgh Evening News : 19 Dec 2008

The company behind the transformation of Granton Waterfront has vowed to build its way through the recession, despite new figures revealing it has posted loss of more than £6 million.

Waterfront Edinburgh Limited (WEL) chief executive Colin Hunter said it and other public sector companies have to "step up to the mark" and keep development moving.

He made the comments after new accounts posted at Companies House revealed that WEADVERTISEMENTL, which is owned by the city council, posted a £6.6m pre-tax loss in the year to the end of March 2008.

It blamed the declining value of land for the drop, after the estimated price of its development land plummeted by £8.45m.

The company has admitted too many luxury two-bedroom flats have been built along the Waterfront and has moved away from the original masterplan to focus on larger affordable homes.

Mr Hunter said: "In times of economic turmoil, the public sector needs to step up to the mark and that is what we intend to do.

"We have unashamedly set the vision high for Granton and we remain committed in our efforts to create a waterfront equal to any other in the world."

He added: "The current economic climate has undoubtedly posed challenges for regeneration projects and the property and development sector at large.

"Admittedly we have had to amend our plans to take into account the changed circumstances which could not have been foreseen. We are confident that by securing long-term joint venture partners and focusing on alternative potential plans for the land then we can transform Granton into a bustling city quarter."

The company has also said that it is looking at sovereign wealth and pension funds to help it overcome the economic downturn.

Mr Hunter added that market demand has also contributed to changes to its blueprint.

He said: "There has been a large proportion of two-bedroom flats built throughout Edinburgh in the past few years in accordance with market demands.

"We are now actively pursuing providing affordable homes, family accommodation, as well as one-bedroom flats to create a mixed and diverse community in Granton."

Councillor Steve Cardownie, chairman of WEL, said: "WEL has amended its plans and remains confident it can create a waterfront to rival any other in the world."

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