Post by Historic Docks on Apr 7, 2009 23:39:23 GMT
www.journal-online.co.uk/article/5622-docks-redevelopment-hit-by-recession
Docks redevelopment hit by recession
The redevelopment of The Harbour, Leith Docks, appears to have been hit by the current financial crisis after it was announced that the market value of docklands has plummeted by £220m.
As part of the development project, over 15,000 new homes were due to be built in Leith in addition to commercial and retail space, as well as industrial facilities. However, this part of the project has been put on hold because the value of the docklands area has fallen so substantially.
Despite the value of the Forth Ports-owned land plummeting, the company has downplayed the problems saying that the project is still within its original timescale of 25-30 years.
A spokesperson for Forth Ports, the current port operator, told The Journal: "The drop in value of the land will not delay the project because Forth Ports is not looking to sell the land. The property strategy is focused on Forth Ports retaining the land assets, setting up partnerships with developers and other bodies to create value from the land bank."
In terms of affecting Forth Ports overall financially, the spokesperson said: "Property is a key part of Forth Port’s assets – developing the waterfront not only has a huge impact in terms of regenerating this area of the city, it will also deliver value for Forth Ports’ shareholders."
The Bank of Scotland, which is currently financing the project, will only continue to do so until April, and some fears have been raised over future funding.
Labour Councillor for Leith Gordon Munro told The Journal: "Investment is going to have an impact on the timescale envisaged for the waterfront; it will need the full 30 years, but it could be longer, depending on the current economic climate."
Overall land value in Edinburgh has dropped from £2m per acre to £500,000 in the past 18 months. However, Cllr. Munro believes that there are still opporunities for progess. He continued:"It is an opportunity for the waterfront development as I have consistently argued that the affordable housing element should be developed, and I think some of the people could contribute to making the waterfront happen.
"And the housing associations – there are opportunities there, if either Waterfronts Edinburgh Limited or Forth Ports listen. In my view they are the only players on the market at this moment in time."
He added: "I also think particularly Port of Leith Housing Association have shown themselves innovative when it comes to design and opportunities. I think waterfront companies should be actively engaging with the housing associations.
"There is scope for development – but there needs to be better communication between the players."
Docks redevelopment hit by recession
The redevelopment of The Harbour, Leith Docks, appears to have been hit by the current financial crisis after it was announced that the market value of docklands has plummeted by £220m.
As part of the development project, over 15,000 new homes were due to be built in Leith in addition to commercial and retail space, as well as industrial facilities. However, this part of the project has been put on hold because the value of the docklands area has fallen so substantially.
Despite the value of the Forth Ports-owned land plummeting, the company has downplayed the problems saying that the project is still within its original timescale of 25-30 years.
A spokesperson for Forth Ports, the current port operator, told The Journal: "The drop in value of the land will not delay the project because Forth Ports is not looking to sell the land. The property strategy is focused on Forth Ports retaining the land assets, setting up partnerships with developers and other bodies to create value from the land bank."
In terms of affecting Forth Ports overall financially, the spokesperson said: "Property is a key part of Forth Port’s assets – developing the waterfront not only has a huge impact in terms of regenerating this area of the city, it will also deliver value for Forth Ports’ shareholders."
The Bank of Scotland, which is currently financing the project, will only continue to do so until April, and some fears have been raised over future funding.
Labour Councillor for Leith Gordon Munro told The Journal: "Investment is going to have an impact on the timescale envisaged for the waterfront; it will need the full 30 years, but it could be longer, depending on the current economic climate."
Overall land value in Edinburgh has dropped from £2m per acre to £500,000 in the past 18 months. However, Cllr. Munro believes that there are still opporunities for progess. He continued:"It is an opportunity for the waterfront development as I have consistently argued that the affordable housing element should be developed, and I think some of the people could contribute to making the waterfront happen.
"And the housing associations – there are opportunities there, if either Waterfronts Edinburgh Limited or Forth Ports listen. In my view they are the only players on the market at this moment in time."
He added: "I also think particularly Port of Leith Housing Association have shown themselves innovative when it comes to design and opportunities. I think waterfront companies should be actively engaging with the housing associations.
"There is scope for development – but there needs to be better communication between the players."