The investors are the father and daughter team of Alan and Phamie Beattie. Trading under "It's Cauld Ltd", the pair concluded the deal with site owners Marine Harvest on Tuesday.

The firm's name reflects the obligation on any owner to carry out major improvements to flood-damaged Murray's Cauld on the salmon-rich Ettrick Water which runs parallel to the site.

The price is testimony to the cost of that work, which has been estimated at up to £250,000, and the fact that Norwegian-based Pan Fish, which became the Marine Harvest Group in 2006, was forced several years ago to abandon plans to rear smolt at the facility.

That proposal proved a non-starter because of fears the integrity of the Atlantic salmon, on which the economy of the world-famous Tweed catchment depends, would be compromised if any cross breeding with the farmed variety took place.

Put simply, the site had become a white elephant.

Mr Beattie this week revealed his plans for the site, which is zoned for housing in Scottish Borders Council's new Local Plan. It currently comprises two houses, a sprawl of outbuildings and overgrown former hatching beds.

He said plans were already been drawn up to convert some of the outbuildings into houses. Plots for new houses on the main part of the site would be prepared and sold on.

The water turbine shed, powered by the mill lade, would be fully restored with the electricity generated sold on to the National Grid.

Repairing the cauld would be a priority, said Mr Beattie, although he believes this can be achieved at a much lower cost than previously estimated.

And he gave a commitment that a three-acre strip of haughland between the fish farm and the Ettrick could be made available for allotments free of charge.

"I think this is a good deal: good for Marine Harvest, good for Phamie and me and good for Selkirk," he said. "I'm a great believer in luck and I find the harder I work the I more luck I get."

For Phamie, 24, who works as a hairdresser in Melrose, it is her first venture into property development.

"It's very exciting to think we can transform such a run-down site into a lovely place to live for many people," she told us.

Meanwhile, community council vice-chairman Dr Lindsay Neil welcomed Mr Beattie's free offer for allotments.

He told The Wee Paper: "I viewed the three-acre strip this week with senior officials from Scottish Borders Council and they believe the area would be an ideal site for allotments.

"I look forward to discussing the details with Mr Beattie."

Her father added: "Thousands of tonnes of hydraulic power are waiting to be unleashed on transforming the site as soon as we get permission to proceed with the work.