Alarm bells go off after investment halt

DUNDEE: Claims hotel group decision could result in damaging knock-on effect

The Apex Hotel’s decision to halt investment in a historic building will put millionaire businessmen off investing in Dundee, according to one city firm.

The Courier reported on Tuesday that the Apex had decided to put the breaks on investment in Dundee’s Custom House until the impact of a new watersports course is made clear.

The Apex Group has been opposing the wake-boarding centre plans for months, but saw them approved by Dundee City Council late last month.

Apex bought Custom House, an A-listed building formerly used by Dundee Port Authority, in 2014.

Now, international financial investment group Revere Investments, which has offices in London and Dundee, has warned the decision could have a devastating impact.

Revere CEO Luthais McCash revealed one high net worth client, who it is claimed is looking to invest millions of pounds into Dundee’s waterfront, is now considering looking elsewhere.

Both Luthais and operations manager Stewart Duncan believe the Apex’s decision to put further investment on the back-burner will “set off alarm bells” for the business community.

Mr McCash explained: “It’s a fact, this (the Apex’s decision to halt investment in Custom House) will prevent investment in the city.

“The newspapers went out with the story about the Apex at six o’clock and at five past six, one of our clients was on the phone asking what is going on.

“This is a client who has a net worth of approximately £50 million.

“He is looking to invest in Dundee and it’s not invest as in throw a hundred grand in – they’re looking at buying land across the waterfront.”

He continued: “This is someone who phoned us up and said I want to throw £10.5 million into Dundee in year one.”

But after The Courier broke the news of the Apex’s decision last week, Mr McCash added: “They’ve phoned us at five past six on Wednesday morning to say I don’t know if I want to do that now.

“In terms of investment risk, the Apex decision has put the investment risk portfolio for Dundee all over the place.

“People will question not what has happened, but why it has happened. No one pulls out of something like that for the sake of watersports.”

Mr Duncan said: “This is a big, prominent building in Dundee.

“They (the Apex) bought that building in 2014 and it doesn’t look any better now than it did when they bought it three years ago. It’s three wasted years of investment. Barriers like this aren’t necessarily physical barriers for us, but they’re barriers which are preventing investors from having full faith in us.

“All in all, it’s disappointing for the city. That’s the only way I can put it.”

The Apex Group was unavailable for comment.

Picture: Kim Cessford. The Apex Hotel in Dundee, right, has halted its investment in the Customs House, left.