No deal yet on Gateway Centre

Michael Alexander, The Courier, 6 September 2000

The Receivers who are trying to sell the crisis-hit Gateway Centre in St Andrews yesterday remained tight-lipped over who the likely buyer might be.

A spokesman for Edinburgh-based Grant Thornton reiterated that at least four shortlisted candidates had been identified as of the closing date for bids last Friday.

However, he said no firm deal had yet been secured and would not be drawn on rumours that only one "serious bid" had been made, well below the £9 million centre’s cost price.

He remained confident the premises would definitely be sold, with a deal set to be finalised this week.

However, he did not know for certain if a final agreement would be reached when the receivers meet today.

Speculation has been rife over the future of the Gateway Centre since the £9 million project was put on the market in July, and rumours have continued to circulate through the town over the past few days.

Organisations said to have made inquiries about buying the complex include the Stirling-based Castle Leisure Group, Fife Primary Care NHS Trust, the Old Course Hotel, and Mr Don Panoz, the US business man behind the £50 million Kingask hotel and golf complex.

The lavish Gateway building, which is standing empty and unused on university land at the western entrance to St Andrews, had been constructed to house the St Andrews Golfing Society and a museum, as well as being a spectacular first port of call for the university.

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

At first the company behind the project, St Andrews International Ltd, denied there were financial difficulties. But as deadlines for completion passed, the situation did not improve and the receivers were called in just weeks before the Open Championship got under way.

While the receivers have refused to be drawn on whether the centre was likely to make its £9 million cost price, they have made it clear that "sensible offers" were being sought for the building which has four bars, restaurants, a health and fitness club and extensive conference facilities.

The Grant Thonton spokesman confirmed last week 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.