Response to news that Wakefield-based GB Building Solutions has entered administration
LEP statement in response to news that Wakefield-based GB Building Solutions has entered administration, acknowledging the LEP Growing Places Fund loan agreement with Oxford GB Two Limited:
“Following a thorough due diligence process undertaken by our professional advisers alongside other private lenders, the Leeds City Region Enterprise Partnership provided loan funds to Oxford GB Two Limited to bring forward construction of a large-scale hotel development in Leeds city centre, which the company would operate as a Hilton franchise. While we are sad to learn that GB Building Solutions has gone into administration, the LEP has provided loan funds to Oxford GB Two Limited – a separate company within the wider GB Group, which is understood to be still active and committed to the hotel project.
“The LEP and other private sector lenders will work with Oxford GB Two Limited towards immediate plans to begin procurement of a replacement contractor to finish the construction and complete this key project.”
About the Growing Places Fund
The LEP’s Growing Places Fund offers loans to projects and businesses to invest in capital projects across the Leeds City Region. Each project agrees bespoke arrangements for the loan to be repaid to the LEP over a five-year period.
To date, the LEP has invested £27m in a balanced portfolio of schemes, ranging from remediation of former colliery sites into new affordable homes and offices spaces, to investment in a derelict listed building for a social enterprise in Wakefield to develop a creative space for performance and start-up businesses in the creative and digital sector. This balanced portfolio includes commercial projects, some of which have already repaid their loans in full, to provide a sustainable revenue stream to invest in further infrastructure and community projects across the Leeds City Region.
To date, the loan funding programme has:
· Created 2,495 short term jobs
· Paved the way for the development of 2,700 homes
· Regenerated and remediated 140 hectares of brownfield land, equivalent of 184 football pitches
For more information, click here.
Projects seeking loan funding are appraised by the LEP’s Investment Panel. Those projects recommended by the Investment Panel for funding must be approved by the Leeds City Region Leaders Board and undergo a thorough due diligence process before funding can be released.