The former residential boss of Wates is returning to the firm in a regional role a year after the housing firm which he left to create collapsed with debts of more than £8m.

Paul Nicholls will rejoin as managing director for London in February next year and oversee Wates Residential’s ambition to become a leading development partner in the capital.

It will mark just under four years since he quit his previous role at the firm to set up partnerships housing business Real Contracting Group in January 2021 from the South-west and South-east divisions of contractor Rydon.

Paul Nicholls will start as regional London boss at Wates Residential in February

Nicholls had aimed to grow the firm to be a £300m-a-year turnover builder within five years, but it went into liquidation in November 2023 owing £8.4m to Rydon Regeneration and close to £114,000 to a recruitment business.

He said the time setting up his own business and advising other large firms had “proven invaluable where I learnt more about myself and about the inherent risks within the sector”.

He added that Wates Residential had “always had a special place in my heart and it’s been great to see its growth and development in recent years. 

“It is a joy to be returning to the business that I feel is a cultural home for me, driven by its purpose to reimagine places for people to thrive,” he said.

Nicholls will report to Phillippa Prongué, who will start as the firm’s new executive managing director in the new year after being appointed to the role last month, replacing outgoing executive managing director Helen Bunch, who is retiring.

Bunch said that Nicholls’ expertise would help Wates accelerate the deployment of private investment to support the delivery of both the GLA and Government’s ambitious housing targets. 

“He re-joins a team that is much more regionalised than it was previously, a decision we made to get closer to our customers and projects. He will bring renewed drive to an already-strong board and team within the London region.”

Wates is also setting up a new regional London fit-out business headed up by the former head of ISG’s fit out arm Lee Phillips, who started at the firm last month.

The liquidator’s report for Real Contracting Group gave no reason why the firm or its subsidiaries Real SW and Real LSE collapsed.