Elliot Group is in talks to hand over three of its stalled schemes – Aura, Infinity and The Residence – to a new developer after failing to raise finance for them amid a police probe into the company.
Work stopped at all three of the projects, which are currently under construction, earlier this month following the arrest of the company’s founder, Elliot Lawless, in December last year.
As a result of the police investigation, Lawless has stated that if the unnamed developer does not take on the projects, or investors do not approve the appointment, the schemes will have to be put into administration.
A spokesman for Elliot Group said the company would not be able to secure cash to restart building works on the £70m Residence project in Salford.
The spokesman said: “The ongoing police investigation means there is no likelihood of raising further development finance until the investigation is complete and Mr Lawless is exonerated, as he expects to be.”
Lawless has committed funds to complete the superstructure of the scheme with PJ Carey. Meanwhile, he will “inject short-term funding to keep the project afloat” before the developer steps in.
“This approach and scenario holds for our Aura and Infinity schemes in Liverpool,” the spokesman added. “The key is to ensure that the schemes remain viable and can be delivered. They’re great projects that will transform their immediate environs and deliver the returns we’ve previously been able to provide to our investors.”
Lawless was arrested by Merseyside Police on 18 December last year on suspicion of conspiracy to defraud, bribery and corruption.
The police investigation is ongoing.
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