Concern for investors’ millions as two Liverpool property companies collapse

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Two companies within a Liverpool based property group have entered into administration.

YPG Investar Islington House Ltd and YPG Fabric Residence Ltd are now both in administration.

Both companies were subsidiaries within the Liverpool based YPG Group.

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YPG Investar Islington House Ltd and YPG Fabric Residence Ltd are both special purpose vehicles ( SPVs) for two apartment schemes in the city centre’s Fabric district.

In 2017 YPG unveiled plans to build five apartment blocks in the Fabric District area of the city. Exciting videos were produced showing the giant Fab blocks, which would rise up to 10 storeys high, alongside the neighbouring low-rise buildings.

YPG managing director Ming Yeung said to the ECHO: “In relation to YPG Investar Islington House Ltd a lender forced us into administration after a number of investors insisted on placing UN1 notices on the title.

“This caused funding problems and resulted in the lender calling in the administrator.

“At YPG Fabric Residence Ltd we entered into administration to protect the company,investors and creditors after we missed the long stop date ( the completion date for the scheme) to finish the scheme.”

Administrators will now manage the affairs of both companies for the foreseeable future. The process normally ends with the company coming out of administration or being sold off to pay off creditors who are owed money.

A report by FRP Advisory Trading Ltd has revealed that investors in YPG Investar Islington House Ltd are owed around £7.2m.

The report, made public last month, casts doubt on whether the investors will recover their money.

It reads: “The administrators are reconciling the position in relation to Investors’ claims but understand these are likely to total approximately £7.2m.

“As noted above, the administrators have not included an estimated outcome statement so as not to prejudice any future sale process. Notwithstanding that, based on the amount currently outstanding to secured creditors, the administrators believe that there will be a shortfall in respect of the company’s indebtedness to its secured creditors.

“However the precise level of recoveries that will be made from the company’s assets is yet to be determined.”

The report also reveals that YPG Investar Islington House Ltd owes £4,154,091.02 to other creditors excluding investors. This includes a debt of £3,904,244.05 to Cynegy Bank Ltd.

In 2017 Mr Yeung said that he wanted the schemes to connect with area’s industrial past.



CGIs of YPG schemes in Liverpool’s Fabric District

He said: “We wanted to give the buildings a distinctive name and pay a little tribute to both the history of the area as the centre of Liverpool’s clothing and fabric trade and, of course, to the four young lads who changed popular culture for ever.

“Islington has been an unremarkable part of the city for decades now but, as part of the expanded Knowledge Quarter (KQ Liverpool), is undergoing a fabulous renaissance.”

YPG is also behind a major apartment project on the waterfront called Kings Dock Mills, as well as Hamilton Hub and Pembroke Studios.

YPG subsidiary North West Development Consortium Ltd, (NWDC) entered into liquidation last year.

An Estimated Deficiency Report by the Insolvency Service states that the company owes £9,126,084.34 to creditors, many of who are local independent companies. According to the same figures £3.8m is owed to YPG related companies.

Information on Companies House reveals that YPG Investar Islington House Ltd entered into administration in September this year. YPG Fabric Residence Ltd entered into administration in November.

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