EDINBURGH Zoo is expected formally to join forces with property development group EDI in the coming weeks to help the cash-strapped tourist attraction explore new methods of raising funds.
The zoo, which is owned by the charity The Royal Zoological Society of Scotland, has run into financial troubles and lost £400,000 in five weeks alone last year as a result of the foot-and-mouth outbreak.
In October, the zoo announced a £100,000
masterplan in partnership with Scottish Enterprise Edinburgh and Lothian to bring about a wide-range of much-needed improvements to the park.
As part of this review, EDI, the council’s property development arm, will be formally brought on board to examine projects aimed at better utilising the zoo’s 82-acre land holding.
A source close to the zoo said that the deal would be signed and sealed in "two or three weeks".
The zoo said that it was considering releasing plots of land to be sold either to external developers or to be utilised by the zoo itself.
Although part of Edinburgh’s greenbelt, the zoo is located in the highly sought-after Corstorphine district of the city.
A spokeswoman for the zoo said: "One of the things we are looking at in terms of the master plan is that we could release some of the land.
"Doing this would be one way to raise funds, but a decision has not yet been taken and it’s only one option open to us. The process is expected to take several months or even years."
She added that only "peripheral" locations within the zoo’s landholding were being considered for disposal.
EDI has an enviable track record in commercial property ventures in Edinburgh including the Gyle shopping centre and Edinburgh Park.
It made a £100m profit from the Gyle whilst the next phase of building at Edinburgh Park in a joint development with Miller Group is already under way.
Yesterday, the company stressed that selling-off parts of the zoo’s property holdings was only one of a number of options it had been brought in by the zoo to consider.
A spokesperson said: "They [the zoo] were looking for a partner to help with the new business plan. We are assisting them with the property elements.
"Surplus property requirements will only be developed for the zoo’s benefit."
He added that simply releasing the land for development might not be the most effective long-term method of raising cash.
Proposals to build new housing on parts of the zoo’s land have been mooted in the past as the growth in Edinburgh’s financial services sector has fuelled increasing demand for housing in the city.
In 2000, Rangers Football Club chairman David Murray expressed an interest in buying parts of the zoo’s land for development, but only on condition that planning consent for building would be granted.
gdixon@scotlandonsunday.com
