20/5/2008Developer pulls out of sports club sale
HOUSING giant Barratt has pulled out of a controversial £4million deal to build on playing fields in Glasgow's West End.
The firm has reportedly blamed the credit crunch for its last-minute decision to abandon plans for 46 homes at Hillhead Sports Club.
The cash-strapped club, which was the former base of the Warriors rugby team, had provisionally agreed to sell a strip of land to Barratt by its ground at Hughenden.
Glasgow City Council gave the plans the go-ahead in December despite opposition from locals and Green lobbyists, who were angry at the potential loss of playing fields.
Campaigners may have got their way for now but a spokesman for Hillhead Sports Club said he hoped the reprieve is short lived.
Club spokesman Bernie Mitchell said: "The developer withdrew from the process shortly before missives were due to be concluded.
"They have cited the credit crunch as the principal reason for their decision, which came out of the blue.
"It has all come as a major disappointment to us, but we remain convinced that, despite the prevailing financial climate, a development deal is a very attractive proposition to the market, given the prime location.
"While there is certain to be a delay to the scheme, which we hoped would start early next month, we are hopeful a new developer will soon be identified to realise the ambitious plans.
"We believe it is a temporary hitch rather than a fatal blow."
The plans would have seen 44 flats and two mews properties built on land off Hughenden Lane, which amounted to 12% of the club's land.
The club planned to use the sale cash to clear reported debts of £750,000 and turn the remaining section of their ground into state-of-the-art multi-sports facilities, including an all-weather hockey pitch, stand, gym and clubhouse.
A Barratt spokesman said: "As a result of economic market conditions and other matters, the company regrets it was not in a position to proceed with the proposed purchase of the land."
Last week Barratt said it would be starting only a few new UK projects in the coming months after revealing the value of its forward order book had plummeted year on year.
The firm has reportedly blamed the credit crunch for its last-minute decision to abandon plans for 46 homes at Hillhead Sports Club.
The cash-strapped club, which was the former base of the Warriors rugby team, had provisionally agreed to sell a strip of land to Barratt by its ground at Hughenden.
Glasgow City Council gave the plans the go-ahead in December despite opposition from locals and Green lobbyists, who were angry at the potential loss of playing fields.
Campaigners may have got their way for now but a spokesman for Hillhead Sports Club said he hoped the reprieve is short lived.
Club spokesman Bernie Mitchell said: "The developer withdrew from the process shortly before missives were due to be concluded.
"They have cited the credit crunch as the principal reason for their decision, which came out of the blue.
"It has all come as a major disappointment to us, but we remain convinced that, despite the prevailing financial climate, a development deal is a very attractive proposition to the market, given the prime location.
"While there is certain to be a delay to the scheme, which we hoped would start early next month, we are hopeful a new developer will soon be identified to realise the ambitious plans.
"We believe it is a temporary hitch rather than a fatal blow."
The plans would have seen 44 flats and two mews properties built on land off Hughenden Lane, which amounted to 12% of the club's land.
The club planned to use the sale cash to clear reported debts of £750,000 and turn the remaining section of their ground into state-of-the-art multi-sports facilities, including an all-weather hockey pitch, stand, gym and clubhouse.
A Barratt spokesman said: "As a result of economic market conditions and other matters, the company regrets it was not in a position to proceed with the proposed purchase of the land."
Last week Barratt said it would be starting only a few new UK projects in the coming months after revealing the value of its forward order book had plummeted year on year.