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Liverpool Echo
Liverpool Echo
National
Tom Duffy

Leaked emails cast fresh light on Liverpool New Chinatown row

Emails concerning the sale of Liverpool's controversial New Chinatown site have been leaked to the ECHO.

The revival of the city's historic Chinatown community has been mired in controversy after the promised scheme failed to materialise. Buyers claim to have invested around £6m in the project which was launched in 2015.

Peter McInnes promoted companies PHD1 and North Point Global (NPG) in 2015. PHD1 won the tender to deliver the New Chinatown scheme in 2015. The New Chinatown scheme recently featured in the employment tribunal of former Liverpool Council regeneration boss Nick Kavanagh.

READ MORE: New Chinatown meeting at centre of explosive employment tribunal

Mr Kavanagh brought an unfair dismissal claim against his former employers. In his witness statement, city council chief executive Tony Reeves said it was contact from the boss of the previous owner of the New Chinatown Site, Urban Splash, that first raised concerns about then council regeneration boss Mr Kavanagh.

Mr Reeves claimed Urban Splash director Jonathan Falkingham raised concerns about Mr Kavanagh's conduct in relation to the New Chinatown site.

Now two emails from Mr Falkingham to Peter McInnes about the sale of phase three of the site have been leaked to the ECHO. Both were sent after Liverpool Council had awarded the tender to PHD1.

The first email from Mr Falkingham, dated July 17 2015, reads: "Hi Peter hope you're well.

"Our respective lawyers have been burning the midnight oil and attached is what we believe is the final form of contracts to be exchanged between us. We are in a position to sign today and are proposing to exchange contracts with you subject to the various LCC consents that we both require.

"In terms of the LCC consents - these are all documented and with LCC solicitors for comment so I am hopeful that these will be concluded swiftly. I understand that your solicitors are in funds for the deposit so I would be grateful if you could confirm that you're now in a position to proceed to exchange. Best regards Jonathan."

The second email from Mr Falkingham , dated April 7 2016, reads: "Hi Peter -just a quick note to say congratulations on acquiring Tribeca from us last week. Hope the project goes as planned. Jonathan."

Mr Falkingham declined to comment when approached by the ECHO. Mr McInnes said he was surprised to learn that Urban Splash had complained about the conduct of Mr Kavanagh.

He said to the ECHO: “Once terms had been finally agreed for the acquisition of New Chinatown with Jonathan Falkingham of Urban Splash, there was nothing at all to suggest that they were in any way unhappy or dissatisfied with the deal, actually the opposite.

"I am therefore very surprised that some two years after completion, they made a formal complaint against Nick Kavanagh which then bizarrely led to disciplinary proceedings against him. Urban Splash never expressed any dissatisfaction to me and were delighted when the deal was done.”

NPG was the company behind New Chinatown, Pall Mall, Baltic House and the Element. Buyers who invested in the schemes now claim they are owed a total of £40m. Related company PHD1 Construction Ltd entered liquidation in 2019 and owes creditors £7.893m.

Nick Kavanagh, Liverpool Council's former Director of Regeneration (Liverpool Echo)

In his witness statement, city council chief executive Tony Reeves said: "In late 2018 I was contacted by Jonathan Falkingham, the founder and creative director of Urban Splash in respect of concerns about the New Chinatown development and how Nick Kavanagh had dealt with the transfer of Urban Splash's interests to PHD1.

"Joe Anderson had also held discussions with Mr Falkingham and we agreed that an independent review would take place. Weightmans were instructed to carry out the review. Final report sent to the city solicitor June 2019.

"The report said that Nick Kavanagh had made a comment after the presentations to the effect that if Urban Splash transferred its interests to a developer called X1 then planning permission would not have been granted, which was a major factor in putting pressure on Urban Splash. The report had a recommendation that 'Liverpool Council considers whether investigations should be carried out in respect of the conduct of any individual officers.'

Mr Anderson offered a different version of events when he gave evidence to the tribunal.

He said: "Jonathan Falkingham of Urban Splash said he had concerns about the successful candidate of PHD1/North Point Global and that Ann O'Byrne had hugged their representative Peter McInnes when he made their presentation. She did not stay for the other submissions. At no time do I believe that Nick Kavanagh acted improperly in what was a peripheral role to Ann O'Byrne."

In his own witness statement, Mr Kavanagh claimed Mr Reeves had lied about the complaint from Mr Falkingham in order to try and have him removed from his job. He said: "When questioned Mr Reeves stated on record that he had received a complaint from Jonathan Falkingham of Urban Splash about the manner in which the lease from the project had been transferred to Urban Splash to PHD1. He testified that Mr Falkingham had initially complained verbally and Mr Reeves told him to put it in writing.

"That written complaint was not seen by the panel as it did not exist. Mr Falkingham came to the hearing and stated clearly that no such complaint had been made. Tony Reeves not only lied to the panel, he had commissioned an investigation based on nothing other than his own agenda to find fault and remove me from my employment with the council."

Judge Rachel Mellor, who presided over the employment tribunal, is expected to deliver a judgement in due course.

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