Correspondence with Middlebrook around Lundin Links hotel and Kapital Residential: FOI release

Information request and response under the Freedom of Information (Scotland) Act 2002.

Information requested

  • Copies of the correspondence between the Scottish Government and Middlebrooks a.) regarding Lundin Links Hotel/Kapital Residential,  b.) between 23 June 2022 and 5 September 2022 (inclusive)
  • The valuation report of Lundin Links Hotel carried out by Chartered Surveyors DM Hall*

* This was previously withheld in FOI/202200271139, on the grounds that the public interest in protecting the commercial interests of Kapital Residential outweighed the public interest in disclosure.


A copy of the correspondence you requested is attached. There is not a significant volume of correspondence because the majority of communication has taken place between the Scottish Government's legal representatives and the legal representatives of Middlebrooks.

An exemption under section 33(1)(b) of FOISA applies to some of the information you have requested.

The release of the valuation report of Lundin Links hotel is still likely to prejudice substantially the commercial interests of a person or organisation.

This exemption is subject to the 'public interest test'. Therefore, taking account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption. We recognise that there is some public interest in release because taxpayers' money has been used to provide a loan secured on the site of the Lundin Links hotel. However, this is outweighed by the public interest in allowing the liquidator to obtain best value from the sale of the site, which could be prejudiced by releasing the valuation at this time.

An exemption under section 36 (confidentiality) of FOISA also applies to some of the information within the correspondence you have requested. Correspondence from the Scottish Government's legal advisors has therefore not been included.

An exemption under section 38(1)(b) (personal information) of FOISA also applies to some of the information within the correspondence you have requested. Where this is the case, the text has been marked '[REDACTED]'.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at

Annex D - Creditors questionnaire - Redacted
Annex E - Kapital Loan Statement
Annex F
Annex G (redacted)
ANNEX H (redacted)
FOI 202200328820 - Annex A
FOI 202200328820 - Annex B
FOI 202200328820 - Annex C


Please quote the FOI reference
Central Enquiry Unit
Phone: 0300 244 4000

The Scottish Government
St Andrews House
Regent Road

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