Potential buyers for ill-fated private golf club

Graham Grant, The Scotsman, 7 September 2000

A Private golf club which hoped to attract dollar-rich Americans, but went into receivership after running out of cash should be sold this week.

The ill-fated £9 million Gateway development was due to open in May this year. But its backers called in the receivers after they overestimated demand and failed to come up with £4 million in advance revenue.

About 60 jobs which were promised to locals were jeopardised although some have since been retrained to carry out administrative work.

Now the receivers Grant Thornton say the building has attracted a number of potential buyers. They are considering offers from four interested parties.

It has not yet been revealed whether the centre, which has four bars and a fitness club, will be sold for its full cost price of £9 million. Sources say Fife Primary Care NHS Trust is among the front-runners and may be considering using the building as a new health centre.

The developers, St Andrews International Ltd, had hoped to provide a prestigious golf club at £2,000 a year, business and conference facilities for 300 delegates, a fully equipped gymnasium and access to some of Scotland’s top courses.

At the time of the centre’s collapse, Grant Thornton said it believed the project had failed because of optimistic estimates made by the company of the number of individuals willing to take out club membership prior to the completion of the building.

About £4 million was expected from advance members hip, but these had not materialised, resulting in a huge budget shortfall.

The centre was built on land belonging to St Andrews University and was to be leased to the company. The university’s involvement was one of the persuasive arguments in favour of the development going ahead despite a number of protests.

There was embarrassment in June when the cream of Scotland’s academia were forced to hold a millennium ball in nearby halls of residence after having been promised the event would beheld at the Gateway. A reception for 257 members of the Association of Golf Club Secretaries was also moved to the nearby university physics building over complications with a fire safety certificate at the Gateway.

It is understood that a number of prospective employees at the development have been taking legal advice after being promised jobs and then told there would be a considerable delay before they could start work.