Local anxiety over Gateway scheme

The Courier, 7 July 2000

North East Fife MP Menzies Campbell said yesterday that the receivership of the company behind the St Andrews Gateway development should serve as a warning to other golf developers in the area.

He also warned that the reputation of North East Fife as a golfing centre would inevitably take a knock as a result of these events.

He said, "This receivership demonstrates that there is no inexhaustible pot of gold in St Andrews.

"There is bound to be local anxiety about the use to which this building may be put, but the people who will be most anxious are those whose jobs are at risk and for whom I have considerable sympathy," he said.

A similar view was expressed by North East Fife Conservative prospective parliamentary candidate, Councillor Mike Scott-Hayward. He said, "This is a real blow for St Andrews. It shows the dangers of big developers capitalising on the St Andrews name and then finding that their ambitions do not live up to expectations. I hope a new buyer can be found soon."

As reported yesterday, the £8 million Gateway Centre at the North Haugh was due to have opened in May but the launch was postponed several times as the company behind the project, St Andrews International Ltd, searched for the £4 million expected in advance revenues.

When these failed to materialise, and despite the building being substantially complete, it was confirmed on Wednesday that the receivers had been called in, and now 60 jobs are said to be at risk.

The receivers stated that the project had failed because the company had been overly ambitious as to the number of individuals willing to take out club membership prior to the completion of the building, a forecast made by local critics who doubted the viability of a private golf club without its own golf course.

Speculation had been growing in St Andrews about the project for some time although the company denied there was a major problem.

Last month the company acknowledged that there had been difficulties attracting sales of memberships for the recently formed St Andrews Golfing Society, which would occupy the top part of the building, but the backers had remained confident that the development would be ready in time for the Open Championship, now less than two weeks away.

The facilities were to include a prestigious members-only bar/restaurant/health club and conference facilities. It was also to house a St Andrews University museum which would include a priceless collection of silver maces dating back to the 15th century.

Now, however, as the receivers attempt to find a new buyer for the complex, the future of the development remains unclear.

Developer knew of golf crisis

James Rougvie, The Scotsman, 7 July 2000

Developers of an exclusive private golf club and conference facility knew at least a month ago that the £9 million project was about to collapse.

The consortium behind the luxury Gateway complex over-estimated the lure of a membership at the home of golf in St Andrews. They expected at least 3000 people to have paid £2000 each before it was opened in time for the Open.

St Andrews International had apparently convinced the banks that its target was achievable and that £4 million would come from advance memberships.

It was also to have been home to St Andrews University's priceless collection of silver maces, some of which date back to the 15th century.

But in early June it had become apparent that overseas golfers, in particular wealthy Americans, were unimpressed, despite it being only a couple of hundred yards from the Old Course.

The project went into receivership on Wednesday still £4 million short. Liquidator Grant Thornton is now looking for buyers for the shell of the building.