Nicklaus' £40m golf resort may never be built due to slump

THE FUTURE of a £40 million luxury housing development and golf course designed by Jack Nicklaus was thrown into doubt last night as the developer behind the project became the latest victim of the property slump.

FM Developments, which last month started work on the Ury Estate project in Stonehaven, Aberdeenshire, put ten of its subsidiaries into administration – including the division responsible for the Nicklaus project.

Fears were raised that the current economic climate could make it difficult for administrator Zolfo Cooper to sell the development, which was set to give the region's economy a significant boost.

Edinburgh-based FM Developments' ambitious plans for the Ury Estate include the building of 238 homes on the 1,500-acre site, which in turn would fund the restoration of the historic Ury House.

The 19th-century B-listed mansion is to be turned into a hotel. A series of golf lodges are planned to provide accommodation for 100 people, along with a restaurant, spa and leisure facilities.

Zolfo Cooper yesterday said it was "exploring the options" for the scheme.

Mike Rumbles, MSP for West Aberdeenshire and Kincardine, said: "This is very bad news. I would hope it could be sold, that the administrators will market it to people who will see the attraction to continue with this development. However, there is no doubt this will be difficult in the current climate."

A spokeswoman for Scottish Enterprise added: "This is a disappointing development, but we will be continuing to work towards our aspiration of creating a world-class golf destination in the North-east."

The companies in administration include FM Developments, FM St Vincent Street and FM Homes. It is unclear as to whether any of the parent company's businesses are still operating outwith the administration order.

Zolfo Cooper refused to comment on whether work was still ongoing on the Ury Estate or if any job cuts were imminent.

Joint administrator Fraser Gray said: "We're firmly committed to exploring the future options available for the group's developments and, in particular, plans for the Ury Estate and its proposed Jack Nicklaus Signature golf course."

The golf course is only the second in Scotland to be designed by golfing legend Nicklaus, who has won a record 18 majors.

FM Developments – which is also behind the 275-unit Element project at Aberdeen's Western Harbour and built the award-winning St Vincent Street development in Glasgow – is the latest in a string of construction companies to fall into the hands of administrators amid the housing downturn.

It reported a turnover of almost 10 million for the year to August 2007.