Work has stalled at a £70m luxury development to build on the border of Manchester and Salford, led by Liverpool development firm Elliot Group.
‘The Residence’, Elliot Group’s , is comprised of two towers - one 15 storeys tall, the other 34 - overlooking the River Irwell.
Work on the scheme began in 2017, with the development firm having originally planned to open its doors to residents at the end of 2018.
However, the developer has confirmed to BusinessLive it has “called a moratorium” on the project, following the arrest of its owner in December.
was arrested along with Liverpool council regeneration chief Nick Kavanagh on suspicion of fraud, the . Mr Lawless has strongly denied the allegations.
In a statement, an Elliot Group spokesperson said: “We have called a moratorium while we finalise funding for the project’s build-out, a task that has been made more difficult, of course, by the police’s ongoing investigation.”
The firm said it is writing to the scheme’s original investors to ask that they bring forward final payments to enable the project’s completion.
“Institutional funds are waiting for the investigation’s conclusion before re-engaging with us,” the developer said.
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“In essence, we’re asking them to make a payment off their balance each quarter for the next year and will pay them interest on each deposit.
“It’s not extra cash, just what they had agreed to at the outset, but on an accelerated timetable.”
In December, officers swooped on a plush city centre apartment before confirming a 32-year-old man and a 50-year-old city council worker had been arrested on suspicion of a range of fraud, bribery, corruption and misconduct offences, the reported.
The 50-year-old man, Mr Kavanagh, was arrested on suspicion of conspiracy to defraud and misconduct in a public office, while Mr Lawless was arrested on suspicion of conspiracy to defraud, bribery and corruption.
Mr Lawless has since strenuously denied the allegations and neither he nor the council official have been charged with any offence, with both subject to an investigation by Merseyside Police. Mr Kavanagh has not commented publicly since his arrest
In January, it was revealed the Elliot Group has agreed with contractors Vermont to suspend work on two projects in Liverpool, but the developer stressed that work “remain[ed] ongoing” at all other live sites.