Elliot Group puts three stalled towers in administration

Grant Prior 3 years ago
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Developer Elliot Group has placed three stalled residential towers into administration following funding problems.

Construction was suspended on the group’s £70m The Residence tower in Salford last month where Carey is building the concrete frame.

Main contractor Vermont also suspended work in January on two projects – Aura and Infinity – it was building for Elliot Group in Liverpool.

The projects have been hit by the fall-out from the arrest late last year of Elliot Lawless, founder of Elliot Group, along with a senior official at Liverpool City Council as part of a fraud investigation.

Both men were released on conditional bail and neither have been charged.

Lawless completely denies all allegations and said “there is no evidence to substantiate them.”

Administrators Paul Cooper and David Rubin of David Rubin & Partners based in London have been brought in to “assist Elliot Group’s efforts to protect the existing investors and creditors of the three companies going into administration. Administration grants a company a period of grace whilst solutions to its problems are found.”

Lawless said: “We’ve explored every option available, but in light of the investigation, existing investors were cautious about backing the projects to their conclusion.

“As we enter the administration process, we’ll continue to work proactively with investors to explore how we can help them crystallise their investments and get the projects completed.

“They’re good schemes in great locations and I want to see them through.  We’ve delivered 100 per cent of all our schemes in the past and I am intent on maintaining that track record.”

Lawless said his focus is now on working with the administrator to keep the three projects alive.

He said: “It has been a challenge for me dealing with the police investigation, but it’s nothing compared to the fact that hundreds of great workers have lost their jobs and investors’ funds are at risk.”

A spokesperson for Vermont Property Group said: “We have engaged with Elliot Group and their investors directly for over a month now, in an attempt to find a solution to enable the works to recommence on the Aura scheme in Liverpool.

“We believed there was a solution that would have seen the development successfully through to practical completion, however this needed the agreement and endorsement of all parties under a revised and transparent funding structure.

“Regrettably, we were unable to able to agree terms and the necessary security provisions with Elliot Group in respect of Aura and have had no alternative but to withdraw from these discussions.

“The Vermont team are extremely disappointed at this outcome, however we remain committed to assisting all parties in exploring how this project can be completed in due course.”

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