The Fabric Village in Liverpool will be sold
Administrators of YPG’s stalled Islington scheme have appointed JLL and Wignall Brownlow to sell the site and have signaled that investors are unlikely to recoup the £7million they invested in the scheme.
In September, FRP Advisory was appointed administrator of the subsidiary YPG issuing the Fabric Village of 413 apartments in Liverpool.
YPG Investar Islington House owes £3.9m to loan provider Cynergy. In early 2020, the company took out a bridging loan to cover the cost of the site it had purchased with another loan – from West One Loan – in 2018.
In the latest FRP update, available on Companies House, administrators predict that YPG does not have sufficient funds to reimburse investors.
Investors had made deposits amounting to £7million on 170 off-plan apartments in the 219-home first phase of Fabric Village, known as Fab1.
FRP did not reveal how much it would charge for the sale of the site, for which YPG paid £3.25million three years ago.
In total, the company has debts totaling £11 million.
After that ?
YPG Director Ming Yeung said Location North West he “definitely intends” to present an offer to regain control of the site.
He said his proposal would be “the most complicated” but would deliver the best outcome for creditors.
The sale of the site could also interest Legacie Developments. In recent times, the company has acquired several stalled projects.
These include two Elliot Groups projects – the £250m Infinity scheme in Liverpool and the 300-apartment The Residence in Salford – as well as the 145-apartment second phase of Parliament Residence, also in Liverpool.
Additionally, a joint venture between Legacie and Nexus Residential acquired The Rise from Primesite at the corner of Low Hill Street and West Derby Street.
Speaking after FRP’s appointment, Yeung said he was “devastated” and blamed the pandemic for the collapse of the project.
An £18m funding deal with Maslow Capital fell through before the nationwide lockdown in March 2020. As a result, YPG was unable to repay the bridge loan to Cynergy.
YPG was in talks with London Wall Lending to take out another bridging loan to repay Cynergy and stave off the administration’s threat, Yeung said.
However, before that deal could be completed, YPG discovered that 70 investors held one-sided opinions on the ground.
UN1s secure an individual’s investment and are designed to ensure that creditors are reimbursed in the event of an administration.
With the UN1s in place, the position of a new lender is more risky, Yeung explained. As a result, the deal with London Wall could not be completed until they were removed.
Unable to repay Cynergy before the loan facility expired, administrative proceedings began.
Two other businesses owned by YPG are currently facing difficulties.
Earlier this month, FRP was appointed to YPG Fabric Residence, another vehicle behind the Islington scheme.
In addition, liquidators were appointed last year within the company’s contracting arm, North West Development Consortium – formerly YPG Group.
Another YPG vehicle, YPG One Baltic Square, sold the site of a Program of 296 apartments on Grafton Street at Nexus Residential for an undisclosed sum earlier this year.
Yeung resigned from this company after the sale.