US plan for luxury apartments at the home of golf is bunkered

Jeremy Watson, Scotland on Sunday, 5 October 2008

It was meant to be a palatial viewing point over the most famous golf course in the world.

Sited at the back of the 18th green of the iconic St Andrews Old Course, the former university hall was to be transformed into a luxury residence and prestigious address for wealthy businessmen and leading golfers.

But the St Andrews Grand project has now been abandoned by its US developer, who paid £20m for the building four years ago at the height of the property boom.

The state of the six-storey Hamilton Halls building – which will be the backdrop to the finishing hole of today's Dunhill Cup – is causing concern in the home of golf, with local politicians calling for the developer to either improve its condition or sell the property.

Meanwhile, the Royal and Ancient Golf Club has confirmed it is pursuing a debt for offices it leased to the developer to use while the construction project took place.

The initial plan, announced in 2005 by Rhode Island-based Wasserman Real Estate Capital, was to convert the building into 23 properties with fractional ownerships sold to wealthy individuals, groups of buyers or companies. Paying up to £1.9m for 10 weeks a year, they would become members of the St Andrews Grand club.

David Wasserman, one of the company's owners, claimed Phil Mickelson, the world's No 2 golfer after Tiger Woods, had signed up as a member. But although a construction firm and designers were signed up and the interior gutted, no further work has been carried out – even though the opening date was scheduled for spring this year. Asked if the original concept had been abandoned, Wasserman said: "Yes. But we are going to move to a concept of single-ownership membership. We hope to announce something shortly."

Wasserman conceded the original marketing plan was flawed. "We had something that many people wanted, but those that wanted it couldn't afford it and those that could afford it wanted something different. We managed to sell a third of the fractional ownerships, but it wasn't enough."

He was aware of concerns about the neglected building, adding: "We intend to send someone out there to clean up. We have put a lot of heart and soul and money into it, so we would like it to be done."

The façade, which faces the Old Course's 18th green, is marred by dirty windows and peeling paint. At the back, windows and doors are missing with the floor inside strewn with bricks and dirt.

Ted Brocklebank, the MSP for Mid-Scotland and Fife, who lives in the town, said the "real concern" now was the future of the building. "It's very disappointing that the original idea has collapsed, but perhaps not surprising given the prices they were hoping to achieve.

"We have the finish of the Dunhill Cup today and that will be played out against a backdrop of this sad-looking building. It's wind and watertight so the council can't do anything, but it will be appalling if it is still like this in two years' time when the Open Championship comes back to St Andrews."

St Andrews councillor William Sangster said: "We would have liked to have seen the building finished now and in good order as Hamilton Halls is seen on TV all over the world. Perhaps it could still be individual apartments, more reasonably priced, but the developer should either act quickly now or move on."

The R&A leased Beach House, an office building attached to the Halls, to WRE Capital, as a site office at the start of the project. Wasserman confirmed that he and R&A officials were discussing "unresolved matters" in relation to the property. Peter Dawson, the R&A's chief executive, said: "We are not taking legal action against them, but we are chasing them for a very small debt."