Crisis hit £9m centre for sale

Gordon Berry, The Courier, 12 July 2000

The crisis-hit £9 million Gateway Centre, which stands on university-owned land at the western entrance to St Andrews, has been placed on the market by receivers who are looking for "sensible offers."

This was revealed yesterday as Edinburgh firm Grant Thornton outlined steps being taken in a bid to find a new buyer for the lavish project, which last week ran into terminal funding problems.

Most of the 60 staff taken on to run the centre have now been laid off, and it was confirmed yesterday that the contract of chief executive Geoff Lang had been terminated.

The eye-catching building was to provide a home for the newly-formed St Andrews Golfing Society, and for a prestigious museum and first port of call for the University of St Andrews.

Speculation about the project had been raging for several weeks before it was made clear last week that membership targets for the golfing society had not been met and that last-ditch attempts to find a financial solution had been unsuccessful.

Yesterday, Grant Thornton said that it had appointed Chesterton International Property Consultants to market the development.

Chesterton’s director in charge of the licensed leisure and hotels division for Scotland, Alan Creevy, said that the property had been built to "spectacular standards."

He said the development included four bars and restaurants-including a Japanese restaurant-a health and fitness club, and extensive exhibition, conference and function facilities.

"The concept was to provide an exclusive private members’ club, particularly aimed at affluent overseas visitors.

"The quality of the building really is quite exceptional-it is essentially complete, and is ready to trade.

"We anticipate a strong interest from both domestic and overseas operators keen to capitalise on this unique opportunity."

Matt Henderson, of Grant Thornton, told The Courier last night that although the development cost was around £9 million, "sensible offers" were being sought.

He said that the contract of the chief executive had been terminated, and that a skeleton staff had been retained to carry out administrative tasks and to help gather figures together.

Mr Henderson also made it clear that there had been a number of people-the number is still unclear- who had pre-paid memberships.

These people, he said, would have to be treated as ordinary creditors of the company, and there were no mechanisms for repaying them at the present time.

There were no plans to have the centre trading during the Open, said Mr Henderson, but it would be available for viewing and potential purchase as an "unused and unblemished" property.

The university, which had intended to open its museum and other facilities later in the year, has made it clear that its long-term position has been protected.