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Liverpool Echo
Liverpool Echo
National
Tom Duffy

Liverpool Council completed land deal with developer after he was arrested in corruption probe

Liverpool Council completed a land deal with a property developer months after he was arrested in relation to the sale of city land.

Businessman Elliot Lawless bought the site on Norfolk Street for £925,000 from Liverpool Council on March 31 2017. Mr Lawless planned to build a hotel on the land which would have formed part of a well known chain.

Mr Lawless was arrested on December 18, 2019 on suspicion of conspiracy to defraud, bribery and corruption. The developer has strenuously denied any wrongdoing and has successfully challenged the legality of the warrants used by police to search his home and office.

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The ECHO can now reveal the council completed the deal with Mr Lawless in February 2020, after he was arrested as part of a police investigation into the sale of city land.

The information about the completion date featured in a legal document submitted by Mr Lawless's legal team as part of judicial review into his arrest.

The document reads: "Norfolk Street: On 28 February 2020 LCC completed the transfer of a parcel of land to Elliot Group that formed part of a larger development being undertaken by Elliot Group.

"The individuals at LCC predominantly working on this transaction were Tony Reeves ( chief executive) Pauline Ivaney ( Interim head of service, Property and Asset Management Services) Stephen Kirk, ( Assistant Director, Asset Management) and Mel Creighton, ( Director of Finance and Resources)."

Last year the ECHO revealed how the council sold the site on Norfolk Street to to the Seychelles-based Equity Group. Mr Lawless, who owns the company, has said that the Equity Group is registered in the UK for tax purposes.

An investor in the scheme later told the ECHO that Mr Lawless valued the land at £5.67m.

The investor revealed that Norfolk Street Hotel & Residence Limited, the company behind the venture, paid an extra £4,745,000 to sister company The Equity Group for the land making the total purchase price £5.67m.

Richard Kemp, leader of the city's Liberal Democrats, criticised the deal and raised concerns about the way in which the land increased in value following revelations in the ECHO.

Speaking at the time Mr Lawless told the ECHO that the price difference represented the 'planning gain' which is a benefit developers enjoy if their plans are approved by a local authority.

Norfolk Street Hotel & Residence Limited , the company behind the venture, collapsed into administration following a court hearing on March 5 last year.

Buyers invested £10,851,533 in the project.

The ECHO approached Mr Lawless for comment on this story. A spokesperson for Liverpool council said: "We have no comment to make on this due to ongoing legal matters."

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