The Lundin Links Hotel, which ceased trading at the beginning of this year after a lengthy period of decline, has been sold.
Private development and investment company Kapital Assets, of Balado, has bought the well-known former hostelry for an undisclosed sum from Shepherd Chartered Surveyors, which was acting on behalf of liquidator Eileen Blackburn, of French Duncan LLP.
Shepherd believed the redevelopment of the site, which has been home to an inn or hotel since the early 17th century, would have a “positive impact” on the local economy.
A spokesman added the new owner “has plans for a high-quality residential redevelopment of the former hotel”.
However, Kapital director Keith Punler was out of the country and unavailable for comment, with no one else authorised to give information.
But the firm indicated Mr Punler would wish to announce his proposals for the premises on his return.
Jonathan Reid, commercial partner at Shepherd, added: “Given its prominent situation, it was hardly surprising that much interest was generated in this property.
“We are delighted to secure this deal on behalf of the liquidator and welcome the positive impact the redevelopment of the property will have on the local economy.”
Signs had been apparent for some time that the ‘C’ listed three-storey and attic hotel was in trouble before it finally stopped trading in January, with the loss of seven jobs.
In 2012, the community was shocked by a controversial planning application, lodged on behalf of the hotel’s ex-owner, Martin White, to demolish it and build up to 36 apartments, with four terraced houses and retail space.
Mr White had indicated this was a back-up plan if the prevailing economic climate continued. The hotel had struggled over the previous three years to maintain 70 per cent occupancy and had no prosect of trading profitably into 2013-14.
In March this year, the hotel was offered for sale with development potential – although no asking price was quoted, with the selling agent instead “listening to offers” and reviewing types of interest received.