Investors have expressed concern after a Liverpool property company entered into liquidation owing creditors millions of pounds.

North West Development Consortium Ltd, (NWDC) formerly known as YPG Group Ltd, 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.

YPG managing director Ming Yeung has claimed that £1.4m has been paid out to creditors so far which would reduce total liabilities to £7,726,082.94. Mr Yeung also said that the company's property schemes would all be completed.

NWDC formed part of the Yeung Property Group of companies which is behind a number of property schemes in Liverpool city centre.

YPG has been behind plans to build new apartment complexes in a neglected part of the city re-branded as the Fabric District. The company is also behind a major apartment project on the waterfront called Kings Dock Mills, and Hamilton Hub and Pembroke Studios.

A representative for investors in YPG's schemes in Liverpool contacted the ECHO. He said: "We are concerned that NWDC is now in liquidation. According to the official creditors list the company owes millions. Many of the companies owed large sums of money are local , independent businesses. This concerns us.

"There have been delays on a number of YPG schemes such as Kings Dock Mills, Fabric Village and Hamilton Studios. We also note that NWDC was formerly YPG Group Ltd. The company changed its name months before it entered into liquidation. This concerns us too."

Mr Yeung said that sister company YPG Developments Ltd would now ensure all schemes were delivered and completed.

Mr Yeung also said that over £1m had been paid out to contractors following the collapse of NWDC.

He said: "The contracting company went into liquidation due to losses incurred from contractual errors caused by management issues. We also experienced cost overruns which has made the contracts unviable .

"The company name was changed as at one point we had an interested party wanting to buy the company and we didn’t want the YPG brand to go with the sale. The sale subsequently didn’t materialise and the company went into liquidation.

"The majority of the creditors on the list are from within our own group. We have paid in excess of £1.4m already to sub contractors on revised contracts that has covered their loss

"We granted them new contracts under YPG Developments Ltd, and we increased their contract value to take into consideration the loss that YPG Group Ltd had affected them."

Kings Dock Mill in Liverpool. Photograph by Liverpool ECHO
Kings Dock Mill in Liverpool. Photograph by Liverpool ECHO

Mr Yeung told the ECHO that although some of the YPG schemes were behind schedule, the liquidation of NWDC was not a particular concern. He said that the pandemic had caused major problems for the company over the last year.

He said: "This does not affect any of the projects as it was a construction company and didn’t own any property.

"All the schemes were unaffected as YPG Developments Ltd took over all the build contracts and has honoured all contractual liabilities and made good the errors caused by bad on site management decisions.

"Due to the pandemic, most of the projects have encountered delays. The delays give rise to re-negotiations with our funders which are currently underway.

"On Kings Dock Mills 90 apartments have reached practical completion and are undergoing their legal conveyance. New terms have been agreed with the funder for an extension and we expect to resume the remaining completion of the 125 apartments within weeks. We hope to complete in the summer of this year.

"Fabric Residence had its delays initially because funding for the scheme was hampered due to legal constraints. Under recent case law, a funder would normally get a first charge ( a type of mortgage) and that would suffice. However, recently funding has been difficult due to unilateral notices ( granted to buyers of apartments) placed upon the title ( the deeds) by onward purchasers, which previously had no bearing on funders. We tried very hard to get funding and after a long period we finally found a lender that would assist despite the unilateral notices.

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"The pandemic has also played a major part in additional delays. We are on site and work is progressing . This is now expected to complete in October this year.

"Hamilton Studios is 75% complete and we have been awaiting some documentation from the freeholder and work is due to recommence . Again the pandemic has caused delays with tenants and also the build programme.

"Renshaw Street is a hotel scheme, but during 2020 the appetite for hospitality ventures has diminished. We took the decision to sell the site on and currently we have a buyer that is looking to purchase the site."

"It has been a very difficult year for property developers and we have not been spared by the ensuing aftermath."

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Mr Yeung, 53, told the ECHO that the company had enjoyed some success in the Cleethorpes area during the pandemic.

He said: "We have completed 40 houses and a major leisure scheme involving major brands such as Costa Coffee. So there are success stories too."