Millionaire pulls out of buying Scottish island castle - and blames government minister

A multi-millionaire businessman has pulled out of buying Kinloch Castle on the Isle of Rum, blaming a Scottish Government minister for his decision.

Jeremy Hosking, a city financier and former Conservative Party donor, was in late-stage negotiations to buy the 19th-century pile, owned by government agency NatureScot, and turn it into a hotel.

He has now pulled out following intervention by Green MSP Lorna Slater, minister for biodiversity, who paused the sale in November after a number of concerns were made by islanders, including access to land surrounding the castle. A new owner has been sought for the castle for at least 20 years.

Mr Hosking said he no longer wanted to participate in the sale process because it was “so horrible”.

The sale of Kinloch Castle on the Isle of Rum has fallen through after a multi-millionaire businessman withdrew his interest. PIC: Creative Commons.

He said: “I understand it is the minister that decides and it's her prerogative, but her actions have consequences. I’m not prepared to be pushed around any more. They have to find another buyer. I have tried to speak to Miss Slater but got no reply. Enough is enough.

“Of course, I am handing the anarchy head [a reference to Slater’s governmental department] this great victory because we are now back to where we were five years ago, and the castle is five years older. And it's the Greens who have completely crushed a conservation project. It's unbelievable.”

Previously run as a hostel, the deteriorating castle has been closed to the public since 2015, with the building now requiring repairs of between £5 million and £10m to save it from further ruin.

A statement from the Isle of Rum Development Trust (IRCT) said Mr Hosking’s decision was “disappointing”.

The trust added: “Over the last eight months, we have made a number of, we feel, reasonable requests to the proposed buyer (and the seller) relating to the possible positive and negative impacts on Rum of these proposals. None of these have been substantially answered. This has been unfortunate."

Since the sale was paused, IRCT has been working with the Scottish Land Commission and NatureScot on the future governance of Kinloch Castle.

A Scottish Government spokesperson said: "The minister intends to meet with them to discuss this work when it is complete. She is also happy to meet with any potential buyers at the right point in the process."