Action demanded to 'salvage city’s reputation and help people who appear to have lost up to £80 million'
Investors who fear they have lost manymillions of pounds in stalled developments in Liverpool are considering joining forces to take legal action, according to Liverpool’s Lib Dem leader Richard Kemp.
Cllr Kemp has demanded the city council takes action to salvage the city’s reputation.
He has written to the council with a number of demands, including one calling for former Lord Mayor Gary Millar to be stopped from making further journeys to China until the issue is resolved.
The abandoned New Chinatown scheme is one of projects highlighted by Liverpool Confidential.
Read: Big trouble brewing in New Chinatown
Cllr Kemp said: “The concerns over the failures of four big residential and commercial developments has recently hit the local and national headlines.
“We are now demanding action to salvage the city’s reputation and assist those people who appear to have lost up to £80 million in these developments
“I am now concerned that those people who have lost their money will consider that this is a ‘joint enterprise’ with the council and that they might seek relief from their losses from the council and ultimately the taxpayers of Liverpool.”
Cllr Kemp said there are talks within the Chinese community of a class action being pursued by a number of investors coming together.
“This could lead to huge repercussions for our finances. My understanding from the Liverpool Chinese Community is that up to £80 million has been invested in the four failed projects by people from the Hong Kong and Chinese mainland,” added Cllr Kemp.
He has asked the council to make clear, via the Hong Kong and specialist Chinese media, that Liverpool City Council has not had a significant role in this matter and also explain the legal limitations of the council’s role.
He has also called on the council to “ensure that Cllr Millar makes no further forays to China unless and until these matters are cleared up”.
Cllr Kemp also wants to make sure that external legal advice has been taken from specialist lawyers about any contingent liability.
“I also want to see a helpline established for distressed investors of these and other developments to see what the council can do to assist them, and to understand the full extent of the problems that have been created for global investors in the city.”
In its most recent statement, New Chinatown developer North Point Global announced that because of the harm to its reputation, the directors and their advisors considered it would be wholly unrealistic to return to site on any of their projects as they consider that the North Point Global brand has become tainted and damaged
“Therefore the group will seek to dispose of all of their property interests, return monies to buyer clients and then cease operations,” the statement added.
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