Scottish developer Gregor Shore in administration - Leith regeneration at risk

Luxury Scottish developer Gregor Shore has gone into administration, putting two major regeneration projects in Leith in danger.

The Edinburgh-based firm, which employs 120 staff, said a slowdown in the property industry had led to cash-flow problems but that it intended to complete outstanding work.

It appointed John Reid and Patrick Lanagan of Deloitte and Touche as administrators on Tuesday.

Gregor Shore was the developer behind the major Waterfront development in Leith, which is now expected to be delayed, reported the Scotsman.

Flats at the development are almost finished, with only 35 awaiting completion certificates, yet the site still contains scaffolding and discarded tools.

The firm said: “Due to the material downturn in the housing market, Gregor Shore has been suffering severe cash-flow problems and the directors concluded they had no other option than to appoint administrators.

“It is the administrators’ intention to complete the company’s two major developments, Platinum Point at Newhaven Harbour and Anchor at Granton Harbour.”

Edinburgh Chamber of Commerce chief executive Ron Hewitt said: "The Waterfront project is going to happen. This just means a degree of delay."