Northern Powerhouse Developments investor loses £100,000 pension fund
A man who invested £100,000 in two hotel rooms of Northern Powerhouse Developments' Afan Valley Project in 2018 has said he has lost most of his retirement fund due to the company going bust.
William S paid £50,000 for each room as a deposit and the developer promised him that he would be paid £5,000 per year for each room over a 10-year period.
"I've chased both buyer and seller solicitors for my money for the last two years. They have never replied to me," he said.
"I am furious as I feel like I was scammed by the solicitors and developer. This has seriously impacted my retirement plan as I have lost most of my retirement fund and an income source."
It is estimated that more than 1,000 people invested around £80m in schemes and companies associated with NPD director Gavin Woodhouse (pictured), who is under investigation by the Serious Fraud Office.
Specters Solicitors managed to get back part of the investment from the seller's solicitors for William and is representing approximately 70 clients in potential professional negligence group actions against their former conveyancing solicitors.
Clients lost an average of £60,000 in capital and about £4m paid towards the developments, which were advertised as multifaceted units, such as care homes and hotels.
Ken Specter, managing director of Specters Solicitors, said: "We welcome Serious Fraud Office's investigation on Gavin Woodhouse. We will send letters of claim to other conveyancing solicitors acting on behalf of other investors.
"We encourage any investors involved to come forward and join our potential claims. Investors could claim their capitals invested plus any interest incurred to date."
Woodhouse founded Northern Powerhouse Developments (NPD) to focus on investment in the leisure and tourism industry, including the Afan Valley Adventure Resort development. The group operated a funding system whereby investors forward-bought rooms in hotels, and this money was used to purchase and develop the properties.
Following an investigation by The Guardian and ITV into the finances of Woodhouse's companies, interim managers were appointed to NPD in 2019 "to secure the assets of the company while enabling a detailed assessment and forensic investigation into where many millions of pounds have gone".
A spokesperson for NPD at the time said the group strenuously denied any wrongdoing. NPD's 10 hotels later fell into administration.
A new team has been given conditional planning approval to take forward the Afan Valley leisure resort project.
