Receivers say sale of new centre certain

Michael Alexander, The Courier, 2 September 2000

Negotiations continue with interested parties but the crisis-hit Gateway Centre, which is standing empty and unused on university land at the western entrance to St Andrews, will definitely be sold, with a deal set to be concluded next week.

That was predicted yesterday by Edinburgh-based, receivers Grant Thornton, as the closing date for bids was reached yesterday.

They said a large number of businesses had registered an Interest since the £9 million project was put on the market In July.

The lavishly finished and equipped building would have been the home of St Andrews Golfing Society and a museum, and first port of call for the university.

But the society ran into severe problems with its fund-raising membership drive in the USA.

In spite of early denials that there were financial difficulties, deadlines for completion passed, the situation did not improve and the receivers were called In just weeks before the Open Championship got under way.

A few of the 60 staff were retained to carry out some administrative work and Grant Thornton set about finding a buyer.

They decided to sell the building on as “unused and unblemished’ by showcasing it during the Open.

Refusing to be drawn as to whether the centre would make Its cost price of £9 million, the receivers made it clear that “sensible offers” were being sought for the building, which has four bars, restaurants, a health and fitness club and extensive exhibition, conference and function facilities.

Yesterday the Grant Thornton spokesman said there had been a good response from businesses at home and abroad.

He confirmed that 64 sets of particulars had been sent out and 15 companies had been shown around. At least four interested parties had put in a bid and It was these front-runners which were now being considered.

It is understood that one interested party had been Fife Primary Care NHS Trust, which considered it as a possible site for the new health centre. However, the spokesman would not be drawn on speculation as to who the buyer may or may not be. He said, “We’re still In negotiation with interested parties. Offers are still being discussed and we can’t say who they are from or what they are.

“But there will definitely be a sale and this should be finalised next week. Once a deal has been secured we will issue a statement confirming the new owner.

It had been suggested that the fate of St Andrews International Ltd - the company initially behind the Gateway - should serve as a warning that there was a limit to the number of golf-related developments which the town could accommodate.

However, Fife Council’s economic development service has said it was impossible to draw such conclusions from this one example.

Developments in the pipeline Include the £50 million hotel and golf complex under construction at Kingask and it emerged this week that the future of plans for a £25 million golf and leisure development at Scooniehill on St Andrews’ south side, are to be decided at a public Inquiry in November.