Decision comes a year after relocation
EDI Group to begin ‘managed closure’ as projects dry up
Edinburgh Park: EDI was set up to develop the land on the western boundary
Edinburgh City Council’s arms-length development company is to begin a process of closure as it has “no future pipeline of future projects”.
The decision comes just a year after it relocated to a new head office in the old town.
The EDI Group was established in 1988 by the council to carry out the development of Edinburgh Park and has since developed land and property on its own or through joint ventures.
However, following a review of operations in the early part of this year the council has instructed the directors to begin a process of “managed closure”, according to the group’s latest financial report. This is expected to take a number of years.
“No timescale has been set for the closure to be completed,” say the directors in a filing to Companies House.
“The council’s intention is that EDI will fulfil all current project obligations.”
The directors say that “it is not possible to indicate a date when EDI’s operational activities will cease.
“The directors envisage that a managed process of development completions and cessation will therefore take place over a short number of years.”
The EDI Group relocated to the capital’s old town only last year. The firm has leased 3,545 sq ft of newly-refurbished office space at 3 Cockburn Street on a five-year agreement.
The company was based in North St David Street for two years having moved out of its old headquarters in a former merchants’ hall in Hunter Square which it restored from a shell.
EDI shares space in Cockburn Street with the Royal Edinburgh Military Tattoo.
When the deal was announced last July Bruce Robertson at JLL in Edinburgh, said the building offers The EDI Group “an excellent hub from which to continue growing its operation in Edinburgh.”
The group reported a £606,000 net profit for 2016, against £576,000 in 2015, but “significantly below our target for the year” which was £2.6 million. It is targeting £2.7m for 2017.