Gateway for sale again

The Citizen, 20 October 2000

The controversial Gateway Centre on the outskirts of St Andrews has been re-advertised in the national press at offers over just £2.5 million.

The centre was re-launched in the leisure and licensing trade journals and national papers earlier this week.

Despite expectations - and a high-profile advertising campaign during the summer - the centre failed to attract a suitable offer, although selling agents, Chesterton International, said that a great deal of interest in the building had been registered from all over the world.

The asking price of £2.8 million, at less than a third of the Gateway’s development cost however, will come as a shock to many.

When it first went on the market, a definite asking price was not stated, but with development costs widely known to have come to £9 million, offers in and around that region were expected.

When the Gateway was first put up for sale, a spokesman for Grant Thornton, said: “We hope the Gateway will make the £9 million, but we are looking for sensible - and lively offers”.

However, Colin Wright, of Grant Thornton, explained this week: “We feel the lack of an asking price may have put a number of interested parties off, as people were not sure what range their offers should be in.

“We were not looking for a £9 million sale, but the fact it was known to have cost that to build, may have led people to think we were looking for that kind of money at least”.

He said the fact that an asking price had now been put in place would give a much clearer idea of the kind of figure the owners, St Andrews International Ltd, were looking for.

And Brian Gilmour, a Senior Surveyor of the selling agents Chestertons, expanded: “Due to the unusual nature of the Gateway building, an asking price wasn’t set to avoid prejudicing any offers.

“There were quite a number of interested parties who submitted offers but none of these were ‘clean’ enough to be accepted by our clients.

Many had business-related clauses and guarantees which could not be agreed to enable a deal to be struck”.

However, he said that St Andrews International Ltd, was currently still in discussion with two interested parties.

The other companies which registered an interest first time round will also be contacted again and informed of the fixed asking price.

Mr Gilmour, of Chestertons, said: “Since the centre has been re-advertised, we have had a number of inquiries, although no firm offers. However, for a property of this size, we would normally advertise for several weeks to ensure full media coverage”.

The Gateway Centre, on the North Haugh, offers conference and exhibition space, four bars and restaurants and a leisure and fitness club.

St Andrews International Ltd, went into receivership in July after membership for the elite St Andrews Golfing Society, which was to have been housed within the centre, and to have brought in approximately £4 million of funding, failed to materialise.

The sixty employees who were to have taken up employment at the centre had their contracts terminated three months ago.