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Monday, October 09, 2023

EDI Group delivers Capital benefits

Edinburgh-based property development company, The EDI Group, recorded a pre-tax profit of £1.31 million last year on a turnover of £9.5 million with a 15.6% rise in net asset value to £44 million.

Commenting on the figures, EDI Group Chair Ian Perry said: "Our performance is an improvement on last year's figures which is satisfying in a market where commercial activity in the office and industrial sectors particularly, remains low."

Ian Perry highlighted EDI's use of land, which remains a particular strength. He said: "We have been very successful at generating significant value for our shareholder, the City of Edinburgh Council, for example obtaining planning permission for a development of half a million square feet for Morrison Street that created enormous value for this gateway site."

Commenting on EDI's portfolio which has seen its net asset value grown significantly to £44 million, Ian Perry said:

"We have a strong and deep portfolio and will continue to develop this portfolio in the years ahead. Our estate continues to perform well in terms of occupation, levels, rental, security and capital growth."

The company's strong asset base and encouraging profit figures are allowing it to pursue a programme of development while accommodating a request from its shareholder, The City of Edinburgh Council, for an additional dividend to meet the Council's equal pay obligations.

Through its Triple Bottom Line report, the company also demonstrates how commercial success can be achieved while delivering wider benefits.

"The success of our company is not just stated in financial terms. We also consider other concepts of value", said Ian Perry. "Our commitment to achieving social, environmental and economic objectives remains as focused as ever. This applies to our own schemes and those where we work in partnership with other organisations," he added.

The report highlights EDI's work on both city centre and suburban projects, primarily in the Lothians but also in North Ayrshire. In Kilwinning, EDI successfully completed a 1900 sq m office building through a joint venture with North Ayrshire Council: this is now let to the Accountant in Bankruptcy service on a 20-year lease.

Although the office market remained generally flat - particularly in the west of Edinburgh where EDI has a number of office developments - it is considered that the market is picking up and a detailed planning application for a new building at Edinburgh Park has been submitted recently.

EDI's projects over the last financial year 2005-06 have ranged from major office developments to small-scale social housing projects. They included:

A mixed use scheme of affordable housing and offices in Edinburgh's Cowgate in partnership with Castle Rock Housing Association which completes the last piece in the jigsaw of the award-winning regeneration of The Tron area.

The completion of the Greyfriars and Traverse schemes, through BUREDI, the joint venture with The Burrell Company. All 36 units were sold ahead of schedule.

The construction of 65,000 sq ft factory for McCrae fish processors at Starlaw together with its joint venture partners J Smart and Co.

Looking to the future, EDI has a number of projects that are already on site or due to go on site within the next few months. These include:

Coalhill 2 in Leith, being delivered through BUREDI where a second phase of 39 units including four affordable housing units, is now on site

BUREDI's flagship project at Fountainbridge, involving the creation of a new street, a new bridge over the Union Canal, 180 residential units and 2800 sq m of commercial office space

In Craigmillar, EDI's joint venture with the Council represents the biggest and most far reaching project the company has ever undertaken. The 15-year scheme will create 2,200 homes, four new schools, shops, sports facilities, a new library and parks. Work on the 4-hectare Wauchope Square residential scheme and two new primary schools is due to start later this year.

The Triple Bottom Line report includes an independent assessment of 47 EDI projects, either completed or in development, against nine key performance grouped into three categories: Natural and Manufactured Capital; Human and Social Capital and Financial capital.

Last year's report highlighted resource use and waste minimization as areas where EDI could improve. This year's assessment shows EDI achieved its targets for both areas.

Looking ahead, EDI plans that its supply chain also recognizes the targets and aims of the Triple Bottom Line. To that end, during the last year its design guidelines have helped to influence suppliers, particularly on the Craigmillar project through its joint venture, PARC. For example, PARC has produced a sustainability protocol for the redevelopment of Craigmillar and has recently secured the support of the local authority to incorporate permeable paving into the public realm and new streets, the first time it has been used on a development of this scale.

EDI plans to develop its procurement policy to encourage change throughout the supply chain, targeting four areas during 2006: Sustainable Procurement Policy; Contractor Recruitment/training schemes; Quality Management Systems and Scottish Health at Work.

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