EDI Group, Edinburgh council's development arm, has made its best profit since its £62m bail-out by the council in 2009, as property and housing markets improve.
The developer, which halved its staff six years ago, made a £2.5m pre-tax profit last year reversing a £2.5m loss in 2013m according to accounts just lodged at Companies House. It achieved property sales of £13m, and paid a £3.4m dividend to the council whilst finishing the year with cash reserves of £7m.
Eric Adair, operations and finance director, said: "It was a good year with a lot of activity. The property sector is moving on from the downturn but only slowly and cautiously."
He said there were signs of an upturn in activity in the capital's office market, and compared with 2010 to 2012 a "good level of construction activity".
Its biggest project is India Quay at Fountainbridge, the former brewery site, where it is in discussions with financial institutions over a £100m investment in privately-owned and managed rented housing.
EDI is also poised to announce the identity of a European hotel group which will enable it to develop a site in Market Street, within the world heritage area, which has been lying derelict for 50 years.
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