Major retail scheme appoints adminstrators

A MAJOR shopping centre development in Yorkshire has appointed administrators after becoming the latest victim of the downturn.

The £200m Trinity Walk scheme in Wakefield has seen joint administrators from KPMG appointed today at the request of the directors.

Construction of the project by York-based Shepherd Construction has stopped as joint administrators Jane Moriarty and Myles Halley of KPMG Restructuring explore options for the development which is a joint venture between Modus and CIREF.

Last week TheBusinessDesk.com reported that the future of the project was uncertain after Shepherd said that it had failed to receive a number of payments for work on Trinity Walk.

Wakefield Council and Yorkshire Forward are believed to be in negotiations to try to get work restarted on the scheme, which is expected to be completed next year.

Next and Sainsbury’s have signed up to move into the development and the administrators say that around 40% of its retail space has been pre-let.

The project’s indoor market started trading in June 2008 and work began on the shopping centre in 2007.

Jane Moriarty, joint administrator and KPMG Partner, said: “Trinity Walk is a victim of value erosion in the property sector. The economic downturn and resultant downward pressure on property values is impacting on the viability of many developments.

“Construction has stopped as we work with multiple stakeholders to explore a way forward for the development.”