LEP in ‘active and meaningful’ talks over £4.8m taxpayer loan to stalled Hilton project

A view of the Leeds skyline. Talks are taking place over plans to revive a stalled hotel project in the city.

A view of the Leeds skyline. Talks are taking place over plans to revive a stalled hotel project in the city.

0
Have your say

THE Leeds City Region Enterprise Partnership (LEP) said it is in talks with a building company and a lender over a stalled project to deliver a landmark hotel in Leeds.

The LEP made a taxpayer-funded loan of £4.8m to Oxford GB Two Limited, a subsidiary firm of GB Group, to help develop a Hilton hotel close to the First Direct Arena.

The project stalled after two other subsidaries of GB Group went into administration.

A spokeswoman for the LEP said: “The LEP is continuing to have active and meaningful discussions with Oxford GB Two Limited... and the senior lender, the Co-Operative Bank, to get the project back on site and ensure all necessary steps are taken to protect taxpayers’ loan investment.”

Some 350 staff were made redundant after administrators were appointed at GB Group Holdings Ltd and GB Building Solutions Ltd.

A notice for compulsory strike-off on Companies House was filed on January 5 for Oxford GB Two Ltd.