The credit crunch means the site for the 2014 Commonwealth Games arena cannot be sold at its full value

Published, August 24th 2008.

A key venue for the 2014 Glasgow Commonwealth Games faces a funding shortfall after the credit crunch scuppered plans to raise the cash through a land sale.

The 12,500-seater Scottish National Arena at the Scottish Exhibition and Conference Centre (SECC), designed by Foster & Partners, will host gymnastics and netball in 2014. Scottish Enterprise has committed £25m to the £70m project but the SECC planned to use receipts from the sale of land on its site as part of its funding for the arena.

But developer Elphinstone, which prepared the master plan for a £350m “sustainable village” of 3,000 houses on a 64-acre site at the western end of the SECC, says it cannot now realise the full value because of the credit crunch and has pulled a sale to third parties. It had hoped to receive planning consent for the project by 2005 but final approval was only given in May this year when the credit crunch hit the housing market hardest.