SIR Tom Hunter has enjoyed a big increase in the profits made on his property investments but is facing complications with plans for a giant development in West Lothian amid concerns about costs.

The Ayrshire entrepreneur will face a massive bill for facilities ranging from new schools to a canal basin if he decides to proceed with the Winchburgh scheme as it stands, which may threaten its profitability.

The latest accounts for the Ayrshire entrepreneur’s West Coast Capital property investment businesses show they made around £6.5 million pre-tax profit in total in their latest financial years compared with £3.7m in the preceding periods.

The results reflect a big improvement in Sir Tom’s fortunes in the property game in recent years.

After making around £290m from the sale of his Sports Division business to JJB in 1998, Sir Tom suffered hefty losses on the big investments he made in housebuilding firms before the market slumped in 2007.

The businessman has also been enjoying more success recently in the retail and technology investment arenas in which he made losses during the recession.

The West Coast Capital Assets venture that holds some of Sir Tom’s remaining investments in these sectors made retained profits totalling £5.7m in the two years year to 31 March.

However, Sir Tom appears to be facing challenges with his plans for the giant Winchburgh development 11 miles west of Edinburgh.

West Lothian council has approved a plan that will involve developing around 3,500 homes with a new town centre, schools, parks and infrastructure including a motorway junction and railway station.

In the accounts for Sir Tom’s West Coast Capital Holdings for the year to 31 March, newly filed at Companies House, the property firm noted: “This is a long term development with no certainty of success. Forecasts indicate that actions are required to reduce costs over the life of the development and a subsidiary has opened negotiations with relevant authorities.”

It did not elaborate on the scheme, where a first phase of 550 homes has been completed and where West Coast has invested more than £100m to date.

However, it is understood there are no current plans to start work on phase two.

The company may face a difficult choice regarding how much to commit to a scheme that could take more than 20 years to complete.

If West Lothian Council insists on all the planning conditions imposed on the development, West Coast Capital would become liable for the costs of completing all the new facilities and related infrastructure upgrades if it sells any more land to builders.

In a statement, Sir Tom said the West Coast businesses were in good shape after taking a prudent approach amid the challenges posed by the downturn triggered by the credit crunch and the ensuing global financial crisis of 2008.

West Coast Capital companies wrote down the value of many investments while Sir Tom converted loans owned by some into shares.

“Last year saw steady progress as evidenced by the strong balance sheet underpinned by an ever present prudence towards valuing our asset base,” said Sir Tom.

For example, Sir Tom noted, West Coast had made a very successful investment in a listed property venture Secure Income REIT.

The holding was valued at £129m on the Aim market at West Coast’s year end in March. It was recorded in the accounts of West Coast companies at the historic cost of £51m.

Sir Tom added: “It’s great to be bank debt free and to continue to invest both in our existing portfolio to aid growth and in a number of new investments.”

West Coast has been pleased with the performance of the investments it has made in e-commerce.

After selling its 11 per cent stake in House of Fraser to Sports Direct in April 2014, West Coast has no big holdings in high street stores businesses. It would consider backing bricks and mortar retailers that meet its investment criteria.

West Coast Capital Holdings made £6.2m pre-tax profit in the year to 30 March, against £1.6m last time.

It had accumulated losses of £94.3m at the year end.

The West Coast Capital Investments property firm made £0.3m pre-tax profit in the year to 29 March, versus £2.1m in the preceding year. It had made £9.6m accumulated profits at the year end.

The West Coast Capital Assets retail and technology investment firm (formerly West Coast Capital Trading) made £0.5m retained profit in the year to 31 March and £5.2m in the preceding period. It had accumulated losses of £183.1m at the latest year end.