Elliot Group founder Elliot Lawless, who was arrested and bailed as part of a police investigation in December, wants to ensure the £250m Infinity and £100m Aura projects go ahead. Tony McDonough reports
Developer Elliot Lawless is looking to ensure two property schemes in Liverpool, worth a combined £350m, still go ahead amid an ongoing fraud investigation.
Mr Lawless, founder of Elliot Group, was arrested on December 18, 2019, by Merseyside Police as “part of an ongoing fraud investigation”.
Nick Kavanagh, director of regeneration and employment at Liverpool City Council, was arrested on the same day as part of the same investigation. Both men were later released on conditional bail. No charges have been brought and the investigation remains live.
Following the arrests, work was suspended on Elliot Group’s £250m Infinity residential scheme in Leeds Street, close to the waterfront, and on the £100m Aura student accommodation project on the edge of the city’s Knowledge Quarter.
Mr Elliot, who has vowed to clear his name, says there is no likelihood of raising further development finance while the police investigation is ongoing and so is injecting short-term funding into the projects while seeking another developer to complete them.
He says the financing is close being completed with discussion under way to ensure the developments continue. The proposed arrangement also includes the company’s Residence scheme in Greengate in Salford.
Referring specifically to the Salford project, a spokesman for Elliot Group said: “Elliot Lawless has committed to inject the funds necessary to complete the superstructure with PJ Carey.
“The on-going 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.
“His only option is to inject short-term funding to keep the project afloat while responsibility for completing the scheme is mandated to another developer. The terms of the funding are close to being concluded and discussions are under way with a developer who is keen to step in.
“Once this is agreed Elliot Group will host an investor conference to seek investors’ approval for the appointment of a third-party developer. We are confident that they will back this option but if not, the professional advice we are receiving is to put the scheme into administration.”
And on the Liverpool schemes, he added: “This same approach and scenario holds for our Aura and Infinity schemes in Liverpool. 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. Elliot Group has a 100% track record of delivery and so its focus right now is on ensuring that these three schemes can be completed.”