North Point Global’s deal to sell Liverpool’s £200m New Chinatown scheme to Your Housing Group (YHG) and WElink has been called off.
In October 2016, the Liverpool-headquartered property developer received an unconditional offer to acquire their interests in phases two and three of New Chinatown from a joint venture comprising YHG and WElink. The joint venture was represented in the negotiations by YHG executive director Stephen Haigh.
North Point Global said that at this time it had already launched phase one of New Chinatown and was “well underway” with the construction works. In late October, however, Haigh advised that the joint venture also wished to acquire phase one.
The proposed sale therefore continued on the basis of a disposal of phases one, two and three to the joint venture.
But after five months of negotiations, North Point Global said it had now decided to withdraw from the sale. The business added that it has incurred decommissioning costs on phase one and has been left to return to site with an alternative contractor.
In related news, Liverpool City Council has expressed its concern about the current status of New Chinatown.
It said: “Liverpool City Council is extremely concerned at the lack of progress at the new Chinatown site. Various options are now being considered including how best to ensure the future delivery of the site.”
North Point Global said it was “very surprised” that Liverpool City Council has “deep concerns”, arguing the local authority has been involved in “tripartite negotiations with YHG/WElink almost from day one.”
“The group is committed to working to a satisfactory resolution and completion of New Chinatown for all the benefits it will bring to the city,” North Point Global added.