Perth and Kinross Council is currently re-evaluating its plans for the former offices at 1-5 High Street in Perth, which were intended to be converted into a boutique hotel. This reconsideration comes in the wake of the collapse of the preferred developer, Henley Homes, now in liquidation. The council initially agreed to sell the property to the London-based developer for a nominal fee of £1, and it was anticipated that the project would create approximately 200 jobs and contribute £1.12 million to the local economy annually.

Following the liquidation, the situation surrounding the development has intensified. Serge Merone, the council’s strategic lead for economy, development, and planning, addressed councillors in a recent meeting, stating that a report detailing potential options for the site will be prepared for the council by September. A spokesperson further confirmed that in light of the developer’s collapse, interested parties are still permitted to advance with planning applications, as securing planning permission remains a prerequisite for any development efforts.

The backdrop to this situation includes a history of criticism directed at the council regarding the initial sale of the B-listed property to Henley Homes, particularly given the council’s continued rental payments for office space at Pullar House and the £1.9 million commitment to heritage funding linked to the project. The deal was formalised in 2020 but has since drawn scrutiny, especially after The Courier uncovered that Henley Homes amassed debts amounting to £67 million prior to its liquidation. A spokesperson for Rogue City Hotels, previously associated with the Henley group, has stated that it “doesn’t exist” anymore, adding to the uncertainty surrounding the hotel project.

Compounding the matter, another company, Lock Terrace Ltd, has lodged a planning application to convert 1-5 High Street into a hotel. This firm is notably led by two former officers of Henley Homes and submitted their application in October last year. The recent developments have led to mixed reactions in the community, particularly concerning the decision to auction various items stored in the property. The Perth common good fund committee authorised the auctioning of furniture, while retaining two historical Bailies’ chairs from the former Burgh Council.

As the council continues to navigate this complex situation, the future of this prominent riverside landmark remains uncertain, pending further reports and planning decisions expected in the coming months.

Source: Noah Wire Services