The future of a key development site on the edge of Perth is in doubt after its owners went into administration.
Following the shock decision by Sainsbury’s that it was no longer interested in pursuing the £41 million plan for the former Perth Mart site on Crieff Road, The Courier can reveal that the limited partnership Perth City West has gone bust.
It is the latest setback for the site and casts doubt over the future of various projects in the city.
Cash to unblock the traffic-choked A85/A9 junction desperately needed for its impact in other areas was to have come from the development of the area.
In August, Sainsbury’s announced it was not proceeding with its proposed supermarket due to an ongoing legal battle with Tesco and also after it had tried to establish a proper sewerage and drainage system for the site.
The controversial plan was granted in May 2012 by Perth and Kinross Council and the local authority caused further consternation when they later told Sainsbury’s it could start building the supermarket before vital roadworks on the A9/A85 were under way.
Tesco lodged an 11th hour bid in February last year to try to have this stopped but failed.
However, the firm then submitted an official appeal against the council’s decision with the Court of Session in Edinburgh.
The legal battle between the two supermarkets is ongoing.
Local politicians expressed their disappointment over the announcement that Sainsbury’s would be pulling the plug on the plan for the former Perth Mart site, as it could have created around 450 jobs and possibly prompted future development to the west of Perth.
A spokesman for Perth and Kinross Council said they were not aware of any interest in the site and a spokesman for Hunters Advisors, who previously ran the site during the period when Sainsbury’s plans were progressing, confirmed the project was now the subject of administration.
“We were running this project but following the Sainsbury’s withdrawal the bank, National Asset Management AGENCY (NAMA), have put it into administration,” he said.
“This means that the limited partnership Perth City West, which owned the site, is in administration. The administrators then run the business by selling the site.”