Leisure group may bid for Gateway

The Citizen, 9 September 2000

The future of the Gateway development in St Andrews is still undecided a week after the closing date for offers on the property.

This was made clear yesterday by Edinburgh-based receivers Grant Thornton, who said that negotiations with interested parties were continuing and that the process could take some time.

It has also now been confirmed, however, that serious interest has been expressed by a consortium which includes the Stirling-based Castle Leisure Group-a business heavily involved in the leisure scene.

The £9 million building was put on the market after St Andrews International Ltd failed in its bid to sell several million pounds’ worth of memberships for the newly formed St Andrews Golfing Society to American investors.

The financial crisis-at first denied by St Andrews International Ltd-led to receivership and the loss of around 60 jobs.

By last Friday’s closing date a number of parties had registered an interest in the building, which enjoys superb views over the St Andrews links and contains bars and restaurants and a fitness suite.

The property was available for viewing during and after the recent Open Golf Championship in St Andrews. Sixty-four sets of particulars were sent out and representatives of 15 interested parties were shown around.

Yesterday Paul Smith, managing director of the Castle Leisure Group, said he could confirm that his company was part of a consortium that had registerted an interest.

He said that the matter was being explored properly through formal channels and it was too early to give any further details.

He said it was likely that the process of discussion would take some time but added that the consortium was a serious one and that a very thorough financial and business analysis had been conducted.

"We have formed a view on that, and we would like to progress," said Mr Smith.

He added that the Castle Leisure Group had interests in numerous ventures that included restaurants, bars, discotheques and sports bars. He said that the group had a great deal of relevant experience, and added that the Gateway building itself was "truly magnificent."