Shock over Carbisdale Castle sale shambles
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HOPES of an imminent economic recovery for the Kyle of Sutherland area have been shattered with the announcement that the sale of Carbisdale Castle has fallen through.
Scottish Youth Hostel Association (SYHA), which ran the castle as a hostel until its closure in 2011, revealed on Friday that it had ceased its negotiations with Aberdeen Capital Ltd.
It is understood that SYHA had a number of concerns, including the length of time it was taking to conclude the deal. The castle is to go back on the market.
Aberdeen Capital Ltd was proposing to invest millions to turn the historic building into a five star hotel, creating up to 90 much needed jobs.
A national Sunday newspaper subsequently printed allegations about Michael Douglas, the businessman behind Aberdeen Capital Ltd. These have been strongly refuted.
Community leaders this week voiced their disappointment that the sale has been abandoned.
News that a developer was interested in purchasing the grade B listed Carbisdale first emerged in April last year.
The name of the business people involved was kept under wraps at that point but one of the shareholders was later identified as Michael Douglas.
Edinburgh based architects Michael Laird Ltd were commissioned, along with public relations company Holyrood PR, and became the face of the project.
Public meetings were held at which the ambitious plans were unveiled and the prospect of scores of jobs was dangled before the Kyle of Sutherland communities.
The potential purchase was heralded as a boost for an area which has suffered severely from the closure of the castle, which attracted 20,000 visitors a year, and the destruction by fire of the Falls of Shin Visitor Centre. However the proposal hit a significant hurdle when the tiny community of Culrain objected to the developer’s interest in a parcel of Forestry Commission woodland surrounding the castle which had been earmarked for a garden.
The small community’s opposition pitted local people against each other with accusations that Culrain stood in the way of a deal that held immense benefit for the whole area.
After a flurry of activity and publicity, all went quiet and months have since gone by with no word of how the castle sale was going.
The silence was finally broken last Friday when SYHA issued a statement which read: “SYHA has now ceased negotiations with Aberdeen Capital Ltd to purchase Carbisdale Castle for development as a five-star resort hotel.
“This difficult decision has been taken after protracted and complex negotiations and more recently as a result of growing concerns as to the likelihood of the sale ultimately being achieved.
“SYHA intends to place the castle back on the open market at the earliest opportunity to find another suitable purchaser.”
Two days later it was alleged that the deal had never been genuine in the first place. But this has been strongly refuted by Aberdeen Capital Ltd.
An email request for comment from the Northern Times was answered by a James Dawson, who said he was a shareholder in the firm and Mr Douglas’s cousin. He described the newspaper allegations surrounding the failure of the deal as “lurid”.
And, in a lengthy statement, Mr Dawson outlined the various difficulties surrounding the sale including the disputed forestry ground, a potential wind farm at Braemore and also expenditure by the SYHA on repairs.
Community leaders have voiced their disappointment and concern but also pointed out that the Kyle of Sutherland area has recently attracted millions of pounds in grant aid for a new youth hub and to rebuild the visitor centre at the Falls of Shin as well as to regenerate the centre of Ardgay.
Pete Campbell, chairman of Creich Community Council and also of Kyle of Sutherland Development Trust, said: “It is a huge disappointment and it is going to take a great deal of effort to get someone else interested in buying it because there is no doubt the costs involved are massive.
“All we want to see is some future for it although it is difficult to see what that would be.”
East Sutherland and Edderton ward councillor Deirdre Mackay said: “A huge amount of effort went into this and hopes have been dashed, but we won’t let this experience jade any future interest which we hope will be generated.”
North, West and Central Sutherland councillor Linda Farlow said: “This is a huge setback for the area and we will be discussing the situation at our next Sutherland committee meeting.”
Fellow North, West and Central Sutherland councillor George Farlow said: “Things are beginning to look up following the excellent funding secured by the Kyle of Sutherland Development Trust. We need to consider a holistic approach now across the area.”
Kyle of Sutherland Development Trust manager Helen Houston said: “It is unfortunate that the sale of the castle is not to go ahead. However since the Scottish Government had agreed in principle to the sale of Forestry Commission land with the castle, it may now make it a more viable purchase for a new buyer.”
