A hearing to transfer ownership of the stalled Salford scheme to a consortium of investors was due to take place last Friday but was adjourned after the submission of two cash offers that “represent a much better return for creditors”, according to administrators.
Two unnamed developers are “very keen and jockeying for position” to buy the £70m project, administrator David Rubin told Place North West.
A decision on the preferred bidder for the Greengate scheme is due in the next six weeks.
In March, Elliot Group said an agreement that would see a consortium of around 100 investors acquire the 34-storey and 14-storey scheme out of administration was close to being agreed.
However, that deal now looks unlikely to complete.
The Residence, located in the Greengate area of Salford, fell into administration last March in the wake of Elliot Group owner Elliot Lawless’ arrest by Merseyside Police in December 2019 as part of an ongoing corruption probe. Lawless was subsequently released without charge.
The High Court has since ruled that a search of Lawless’ home by Merseyside Police at the time of the arrest was unlawful and no charges have ever been brought.
The 300-unit development was designed by Falconer Chester Hall. The concrete frame for the 34-storey tower had completed before the project fell into administration.
Last year, investors took control of another stalled Elliot scheme, Aura, a £100m student scheme in Liverpool‘s Knowledge Quarter.
Transfer negotiations are also underway for the 38-storey Infinity scheme in Liverpool, the third project Elliot placed into administration last year, but a deal has yet to be reached.