Alcatel to buy failed St Andrews golf centre

Andrew Murray-Watson, The Scotsman, 14 August 2001

Alcatel, the giant French telecommunications company, is set to make its second Scottish acquisition within the space of a few weeks, with the purchase of a flagship leisure development in St Andrews.

It is understood Alcatel will pay around £1.5 million for the Gateway Centre, the former home to a private golf club that last year went into receivership before it opened its doors.

The French company, which acquired the Scottish optoelectronics company Kymata last month for £82 million in an all-share deal, is the principal financial backer for a consortium called St Andrews Golf Holdings, which is in advanced talks with the Edinburgh-based liquidator, Grant Thornton.

The deal is expected to be concluded within a few weeks.

It is not known what Alcatel will do with the state-of-the-art-building, although it has been reported that the company is planning to convert it into a new regional headquarters for its Scottish interests, which also includes its eBusiness Solutions subsidiary in Glasgow.

Alcatel refused to comment on the impending acquisition. “The company does not comment on rumour and speculation,” a spokeswoman said.

The University of St Andrews, which owns the land on which the Gateway Centre is built, will open a museum on the ground floor, with the top two floors reserved for the buyer.

A source close to the negotiations commented: “Alcatel could use the building as a retreat for its executives or as some sort of conference centre. However, it might also be planning to use it as a Scottish base of operations.”

The source added that the purchase could be a prelude to further Scottish acquisitions or a research partnership with the University of St Andrews, which has a global reputation for its work on laser technology.

There has also been speculation that it is to be converted into a call centre.

A spokeswoman for the university said: “It would be inappropriate to comment at this stage,” and added that a statement would be made once the deal between the liquidator and the buyer had been concluded.

A spokesman for Grant Thornton refused to comment on the identity of the buyer, but confirmed that talks were at an “advanced stage” and would be concluded shortly.

The impending sale to Alcatel ends a long-running saga into the future of the Gateway Centre.

The company behind the development, St Andrews International, had hoped to create a luxury international private members’ golf club charging £2,000 a year, with conference facilities for 300 delegates, a gym, bars and restaurants, golf clinic and access to some of Scotland’s top courses. It was also to house a museum for St Andrews University’s priceless collection of silver maces dating back to the 15th century.

But the luxury development collapsed after it only managed to sell £49,000 of memberships - well short of its target of £1.5 million.

The bid from Alcatel tops a rival £1.2 million offer made by the St Andrews University Students Association.