Students union bid for doomed centre

The Courier, 3 March 2001

The lavish multi-million pound St Andrews Gateway Centre development, which went into receivership last year before it had even opened its doors, could be the new students’ union headquarters of the town’s university.

Student leaders at the university were celebrating yesterday after the University Court agreed that the students’ association be the preferred bidder for the property located at the western approaches to the town.

The property is on the open market at a fraction of its £9.4 million development cost.

The issue was on the court agenda yesterday and following the meeting the university rector, publisher Andrew Neil, described the members’ decision as “wonderful news for the students, the university and the people of the town”.

Available at a knockdown price of offers over £2.5 million, the complex is understood to have also attracted interest from at least four groups - UK and international companies - and at least one with golfing connections.

Selling agents, Edinburgh-based Chestertons, and the receivers, Grant Thornton, revealed that viewings have already taken place and the agents are optimistic that a deal can be struck within weeks.

The rector added, “The fact that the university has named the students’ association as the preferred bidder is tremendous as it puts us in as favourites. We will be entering into negotiations to get this deal done as quickly as possible.

“This is a wonderful opportunity to get rid of the present students union, which is a 70s carbuncle, and allow students at St Andrews to enter a building which is designed for the 21st century and dominates the entrance to the town.”

Mr Neil said that the current union property in the town centre would be sold to be converted into residential and retail uses.

Students’ association president Marcus Booth added, “We have invested a lot of time and effort in reaching this stage in securing the property. The current facilities are not fit for what they were intended and to be sitting here while this building crumbles around us is no longer an option. This is an opportunity that we cannot afford to miss.”

The association bid for the Gateway Centre would be financed by £1 million currently available for its expansion plans, coupled with the proceeds from the sale of the current union.

The Gateway complex was developed by St Andrews International Ltd and was intended to be the home of the new five-star St Andrews Golfing Society. The company was established to create the centre and incorporate a membership luxury bar and restaurant, a health club and the golf society.

However, the complex ran into serious financial trouble due to the spectacular failure of its overseas membership drive, in particular in the USA. Less than £50,000 worth of subscriptions were pledged against a target figure of £1.5 million.

St Andrews University was due to play a key role in the new centre, although it had no financial input. The university's museums' collection was to be put on show in the building.

However, Mr Neil made it clear yesterday that the museum would no longer be an option if the property was secured by the students’ association.

The land is still owned by the university, but was leased to the developers for 99 years. The university secured the facilities in the development at no cost to itself and, in addition, would have received an annual ground rental from the company, which in the first five years would have covered the set-up costs of the museum displays.

Plans for the complex were given the green light by Fife councillors in 1999 despite strong local opposition.