Gateway centre back on the market with £2.5m tag

Gordon Berry, The Courier, 12 October 2000

THE FUTURE of the lavishly equipped £9 million Gateway Centre standing empty and unused in St Andrews has been thrown back into the meIting pot with news that the building is to be put back on the open market.

With the eyes of the golfing world on St Andrews for the Dunhill Cup, developers may take a hard look at the background to the failure of the ambitious plans of the now defunct St Andrews Golfing Society.

It emerged yesterday that the property will be re-advertised in the national press and in specialist magazines, and this time Edinburgh-based receivers Grant Thornton are asking for offers over £2.5 million - less than a third of the building cost.

When the property was first marketed through Chesterton International Property Consultants - they are again the selling agents - the receivers said “sensible offers” were being sought.

The building has been finished to the highest standards and included a leisure and fitness club, four bars, restaurants and extensive conference and function facilities. The top floor, which was to form the main home of the new society, enjoys spectacular views over St Andrews Links.

The Gateway was also to provide a prestigious museum and first port of call for the University of St Andrews, on whose land the Gateway stands.

When the building was first advertised just before the Open Championship in July, it was reported that more than 60 sets of particulars were sent out and that up to 16 different parties were shown round the building.

The receivers predicted a few weeks ago that a deal would be struck but it is understood that the offer did not match expectations. The latest developments re-open the field to other bidders.

It became clear yesterday only two parties were seriously interested, one (Stirling-based Castle Leisure Group) told The Courier it had registered an interest.

Yesterday Colin Wright of Grant Thornton said advertisements would appear today but negotiations with the two parties would continue. He said some potential buyers may have been put off by the lack of asking price and they would now have a clearer idea of what was involved.

The centre was due to open in time for this year’s Open, but it became clear a few weeks before the event that there were serious financial problems with a US membership drive which had been expected to raise around £4 million. At first problems were denied by St Andrews International Ltd, but by that time the writing was on the wall and the subsequent receivership led to the loss of around 60 jobs.