Any Old Ion

Currently awaiting artist’s impression.

Have you noticed how the supposed grand plans for the regeneration of Wirral (and Birkenhead in particular) are being disseminated in the the press in exactly the same incoherent , opportunistic and uncoordinated  way.

For example we’ve already covered how the charisma free zone that is Wirral Council CEO Eric ‘Feeble’ Robinson chose the trade press Inside Media (who?) to tease us about future major land and property deals Double Dealers

Subsequently there then followed  an announcement in the Liverpool Echo that there were plans to convert Wirral Council’s former finance building into student flats under the title ‘ Hamilton Hub’ (groan ). Here we learned that Liverpool-based developer YPG wants to convert these offices in Cleveland Street into an ‘apartment complex’ for 200 students. Hamilton Hub

Sze Ming Yeung, managing director of YPG, said: “Our research tells us there is a real appetite for this kind of student and key worker accommodation in the centre of Birkenhead, partly because of the city region’s excellent cross-river transport links.

Since YPG were set up in 2015 have been busy  helping turn Liverpool city centre into ‘Studentland’. It also won’t surprise you to read  HERE that Asif Hamid’s  Contact Company and YPG have teamed up on the controversial Monarch’s Quay development in Liverpool about which we commented on here :  Asif Attack

Well it would now appear that another one of these landscape changing deals is now out in the open. As apparently the developer behind the controversial Lime Street redevelopment in Liverpool has bought the site of an old Birkenhead railway station – and has vowed to use the land to transform the town. Into what?  Reno? Or has that desert mirage faded before our very eyes too ? We can hardly wait for the artist’s impressions !

We learn from the Liverpool Echo that Ion Property Developments has bought the site of the former Birkenhead Town station, off Tunnel Road between Borough Road and the Rock Retail Park. Ion, formerly known as Neptune Developments, has not yet revealed what it plans for the land. But it says the site is “in a strategic position for the regeneration of Birkenhead town centre”. Read the fully story here : Old Site

Wirral Leaks readers may remember that Neptune Developments had exciting plans to redevelop Birkenhead town centre and which included (gasp!) a drive-thru McDonald’s .  Mysteriously Neptune’s plans were kicked to the kerb by Wirral Council only to be replaced by new plans for  ,er,  a drive -thru Maccy D’s !

So now that Neptune Developments have had a re-branding and changed their name to Ion Property Developments could Managing Director Steve Parry be getting in on Asif Hamid’s act and is acquiring land and sitting back and waiting for the grants of public money to enable them to develop a bit of particularly undesirable piece of derelict land ? Of course Ion don’t quite have Hamid’s position of power and influence as chair of the Liverpool City Region Local Enterprise Partnership (LEP) Board . We await developments (pun intended) with interest.

Meanwhile Wirral Globe are gamely still referring  to ‘the Wirral Waters regeneration project’ in a story about an ‘art installation’ on the site of what perhaps should have been an ‘International Trade Centre’. Forgive us for being so cynical but after the Stella Shiu debacle we feel we’re in for a continual series of piecemeal , ad-hoc developments being heralded as part of the ‘Wirral Waters regeneration project’ rather than the comprehensive transformation we’ve been sold . As a highways feasibility study tender issued last week demonstrates it would seem that there is still a long and winding road to travel before the Wirral waters regeneration project’ becomes a reality.

As an aside an interesting aspect of this story Wirral Waters  was the accompanying picture which included  ‘Community Arts Facilitator’ Cathy Warren alongside Birkenhead MP Frank Field. Could Ms Warren be in any way related to Frankenfield’s favoured report writer and former Judge Nicholas Warren?  I’m sure all of you who know how things work round here will know the answer to that one. 

Pic : Wirral Globe

Finally a concerned correspondent from over the Mersey has been in touch to provide us with a salutary tale and timely reminder as to what can happenwhen Due Diligence is sacrificed in favour of headline grabbing developments .

According to the Department for International Trade, ‘The UK continues to attract record levels of inward investment and remains extremely attractive to foreign investors.’ In fact George Osborne went to China with the Mayor of Liverpool, Joe Anderson to promote the ‘Northern Pitchbook’, with the £200 million New Chinatown development in Liverpool being the ‘centerpiece’ development 
In terms of Cash Only/Investor development investments, this is fast becoming a national scandal, which will have a very negative affect on UK/Chinese relations, and will seriously limit inward investment into the Northern Powerhouse. 
FACT 1 – Record numbers of Chinese and Hong Kong investors have been putting their money into northern developments, especially student accommodation and city apartments .Investors have to put 75% cash up front and the developments are usually ‘off-plan’. This means, in many cases, that not even the foundations have been built. 
FACT 2 – This has attracted the very ‘worst!’ of developers, which can be seen from the following information: 
[1] Angelgate Development- Manchester – which was developed by Pinnacle MC Global and went into liquidation in April 2015, leaving the development unfinished [foundations only]. By August, the developer told buyers the project had been “seriously undervalued” by around £14 million (HK$140.04 million), requiring additional funding in order to complete. The developer gave Angelgate [mainly Chinese/Hong Kong] investors two options: contribute more money to complete the project, or handle the construction themselves.According to a solicitor’s update from Pinnacle, a total of £13.2 million went to commissions and fees, with £7.9 million spent on “overheads, running costs and profits. [this begs the question: how can developers take profits when the development hasn’t actually been built]”An Angelgate investor said an estimated £32 million (HK$330 million) had been paid in deposit money from the buyers in the steering committee and they had filed reports with local police and fraud action groups.

 The Angelgate project was a scam and investors felt helpless, she said. One of the men involved in this development, Tony Freeman, has been arrested by the police. 
[2] Investors from around the world say they will never put money into Liverpool again after their experience of dealing with a city “landlord from hell”.

 They have been bombarding council chief executive Ged Fitzgerald [this man has also been arrested by the police for suspicion of conspiring to pervert the course of justice and intimidating witnesses.]with complaints about Nigel Russell, who runs a number of student properties around Liverpool. Investors say that if the council had carried out Due Diligence then they and fellow investors from as far away as Canada, Brunei, Saudi Arabia and the Philippines may not have had to endure what they called years of hell.

 They had to endure months without any payments, and some had put their life savings into buying units from Mr Russell. Nigel Russell has been arrested by the police 
[3] £200 million – New Chinatown development – The companies involved in this development were given ‘preferred developer ‘status by Liverpool City Council without any proper Due Diligence being carried out. There was significant investment by Chinese and Hong Kong investors. With only the foundations completed, two of the construction companies involved have gone into liquidation and the development is at a halt.

[4] Baltic House – The companies involved in this development are on the point of liquidation. There was significant investment by Chinese and Hong Kong investors. With only the foundations and a small amount of the construction completed this project is at a halt. 
[5] The Paramount – There was significant investment by Chinese and Hong Kong investors. The development is only half built with 140 Chinese students living in the built half. This building is probably dangerous and building is at a halt

[5]Berry House – There was significant investment by Chinese and Hong Kong investors. The company involved is close to liquidation-no building work completed at all.

[6] North Point – There was significant investment by Chinese and Hong Kong investors. The company involved is close to liquidation-very little building work completed .

[7] St James Court – sold to investors, but absolutely no building works even started

[8]Metalworks – sold to investors, but absolutely no building works even started

[9] Eldon Grove – sold to investors, but absolutely no building works even started

It is clear from the above information that Manchester and Liverpool City Councils [as just examples] are not carrying out Due Diligence and are leaving investors prey to criminals. It is quite evident that this is going to lead to a significant reduction in the number of foreign investors in the North West [Northern Powerhouse] and a deterioration in the Chinese/UK economic relationship.