A company that transformed a derelict Bradford warehouse into a block of apartments has gone into administration, owing the bank about £8 million.

North Park (Bradford) Limited was set up as a consortium to carry out the first phase of the Woolston Warehouse project, which saw the creation of 106 apartments off Sunbridge Road, in the Goitside area of the city centre.

But the company, registered to Jubilee Business Park, Grange Moor, Wakefield, has fallen victim to the property market slump and is now in the hands of joint administrators Adrian Berry and Daniel Butters, of Deloitte’s Leeds office.

The administrators are pushing ahead with a strategy to rent and sell the apartments in a bid to recover money for creditors, including the Yorkshire Bank, which provided the original development funding.

The Yorkshire Bank declined to comment due to “client confidentiality.”

In early 2008, the Telegraph & Argus reported that the Skelwith Group, of York, and the Aspasia Group, of Wakefield, were involved in plans to transform the Woolston Warehouse building.

Today, a spokesman for Skelwith said: “North Park Bradford was a consortium of various parties to develop the first phase of the Woolston Warehouse project.

“The first phase, of 106 apartments, was finished last November and is highly occupied. The Skelwith Group acted as marketing agents for this phase.”

Skelwith said it was working with all parties connected to North Park (Bradford) to deliver the second phase of the Woolston Warehouse development, a luxury business hotel.

The Skelwith spokesman said: “This will go ahead once an operator has been signed for a hotel. These negotiations are at an advanced stage so an announcement is expected shortly.”

The Skelwith Group added that it could see “massive potential” in the Bradford market, hence its recent acquisition of the Citygate development, at the bottom of Manchester Road.

Simon Mantle, case manager for Deloitte, stressed that it was “business as usual” in terms of apartment sales and rentals at Woolston Warehouse, despite the administration.

Mr Mantle said: “North Park (Bradford) owns a block of flats in Bradford city centre and has succumbed to the downturn in the property market.

“The bank have asked us to step in, with the directors’ co-operation.

“We are in there professionalising the process and delivering a rental and sales strategy. We have been advising the bank on this for some time.

“It just got to a point where it wasn’t really going anywhere and the bank wanted to take control, but that was done via a director’s appointment.

“Although they are in administration, it’s very much business as usual. The properties are up for sale and rent. That’s how we are looking to recover the position for the bank and creditors.

“The bank is clearly the biggest creditor. They are in for about £8 million.” When asked about the future of the second phase of the project, Mr Mantle said: “There’s a strong possibility of the hotel going ahead. We are in negotiations with an interested party.”

Companies House confirmed that North Park (Bradford) Limited had appointed administrators.

North Park (Bradford) 2 Limited, a separate ‘shell’ company with no assets, is also in administration.

Meanwhile, Companies House said another company, North Park (Woolston Hotel) Limited, had been incorporated.