LONDON (Within The Law) - It was billed as a major new property development and was even promoted by the government. Now it’s the subject of a Serious Fraud Office (SFO) investigation. Welcome to the unfolding horror dubbed New Chinatown.
The original plans for the new development were unveiled in 2015 and work started in 2016. It involved a host of new homes, shops and offices on land off Great Georges Street in Liverpool City Centre. Hopes were high and it was included in the Northern Powerhouse brochure.
However, it wasn’t long before trouble started, which as the Liverpool Echo reports, has now caught the attention of the UK’s biggest fraud regulator.
By 2016 work had stalled with the New Chinatown Buyers Company, which represents investors in the scheme, claiming that it was owed £6million. A spokesperson for the group described the entire project as a ‘nightmare’.
In 2019 the Serious Fraud Office stepped in with an investigation into suspected fraud within the company. According to the Echo, they say their investigation remains ‘open’.
The saga is a major embarrassment for the government which has used the development as a ‘poster boy’ for the Northern Powerhouse. It was among a number of high-profile projects included in a brochure published by the UK Trade & Investment designed to showcase opportunities in the North of England to investors in China.
According to the pitchbook, New Chinatown would provide ‘major investment opportunities’ and would lead to the ‘regeneration of Europe’s oldest Chinatown’.
“The project builds on aspirations set out in The Liverpool City Centre Strategic Investment Framework to create an international quality urban quarter and visitor destination….” stated the brochure. “The vision for New Chinatown is to create a new residential and commercial centre for Liverpool’s new and established Chinese communities whilst adding a distinctive and complementary addition to the existing city centre offer.”
The pitchbook was delivered to China during a trade delegation to Chengdu in September 2015. At the time Chancellor George Osbourne said:
“The new Chinatown, former Tribeca site; that would bring 1,000 new homes, new jobs because there would be lots of shops and hotels and the like there.
“So, I’m pretty optimistic that we will make progress and Liverpool will see some of the benefits of this investment.”
The development came with all sorts of stunning CGI flythroughs showing a shimmering new cityscape in the shadow of Liverpool Cathedral.
However, the dream has now turned to a nightmare, with an SFO investigation ongoing, disputes about money owed and ongoing delays. Questions are now being asked about what checks were made on the organisations involved with the project.
According to the Echo, UK Trade and Investment was involved only with promoting the project rather than due diligence. Liverpool City Council has said in the past that it carried out relevant background checks into the New Chinatown Development Company.
The NCD was brought out by Great George Street Developments, (GGSD) which was incorporated in July 2017 in 2018 with work initially planned to start in the summer of 2019. However, although GGSD says it is still committed to building the development, work has still not started. Liverpool City Council says GGSD owes it £1million which the companies say will be paid when a legal process is complete.
(Written by Tom Cropper, Edited by Klaudia Fior)