Miller Group has pulled out of its 25% stake in a 5,000 homes residential scheme in Edinburgh.
The housing and construction group, headed by Keith Miller, held the stake in the Shawfair Developments joint venture with the City of Edinburgh and Midlothian councils to develop around 350 acres of land.
One of the reasons was that, with infrastructure costs of £150m and falling values, the scheme is no longer financially viable.
‘The scheme was very much developed when values were different from where they are now,’ he said. ‘The scheme doesn’t work for providing private housing any more.
‘It’s a long term scheme with significant up front costs and the value has to be able to justify that.’
Miller said it will now be up to the council whether it unites with the company again to develop the scheme in a better development market.
The homes were being developed on 350 acres of council owned land which it bought 12 years ago for predominantly residential development.
The development was to take place in the areas of Shawfair, Danderhall, Millerhill and Greendykes.