Additional reporting by Rhys Griffiths

Developers behind a luxury seafront housing project in Kent say they were “surprised” to learn the site had been put up for sale – insisting funding for the project is secure.

The Leas Pavilion project in Folkestone will see a nine-storey block of 91 flats built above a Grade II-listed former tearoom and theatre – securing the future of the historic building.

But the fate of the site has been plunged into doubt after it was listed for sale shortly after the company that owns it, Leas Pavilion Development Ltd, was placed into receivership.

However, bosses at the firm, which is owned by Belgian developer Mylecke NV, say they have an agreement with a lender to “fund the entire project”.

They add it was a “complete shock” to see the site listed on property website Rightmove.

The Leas Pavilion, a Grade II-listed Edwardian building dating back to 1902, was demolished three years ago in order for the sea-view flats - valued at up to £935,000 - to be built.

However, construction stopped last year, with only groundworks and two towering stair cores completed so far.

In October, the large crane that had loomed over the clifftop beauty spot was removed.

Bosses insisted work would restart in early 2025 but that has yet to happen - and now a new twist has added even more uncertainty.

The entire site has been listed for sale on Rightmove, with Savills marketing it to potential buyers, with “price on application”.

But Mylecke NV, which took over as the project lead in September, said it knew nothing about the sale when contacted by KentOnline last week.

A spokesperson said: “I’m just as surprised as you are because we have an agreement with the bank for certain amounts payable within the next six weeks.

“We have a fund that’s ready to cover the full development, so this is a complete shock.

“I’m going to talk to my lawyer about it because I’m really surprised myself.”

Receivership is initiated by investors to help recover money they are owed by a company.

Mylecke NV says it already has agreements in place to repay the current bridge loan attached to the site and to secure cash to complete the construction.

“We had an agreement with the lender that is going to fund the entire project,” the spokesperson said.

“It’s just going to take a few more weeks to get the money transferred into the account.

“So I really don’t understand why this has happened - maybe things crossed over or someone panicked, I’m not sure. But we were not informed.”

The Leas Pavilion project, first granted planning permission in 2020, has always been contentious.

The pavilion itself, once a thriving tearoom and theatre, and later a nightclub and bowling alley, had been left to deteriorate for years.

The plan to restore its historic frontage, while building a modern residential complex above it, has divided opinion - especially as construction delays and changes in developers have fuelled scepticism over whether the flats will ever be completed.

Mylecke NV insists it remains committed to completing the work.

“This project is going to happen,” the spokesperson said.

“Everyone is keen to see it finished, and we have the lender ready to back it.”

The company says it will be holding urgent talks with its solicitors in the coming days to clarify exactly why the site was listed for sale, and to ensure all parties - including the bank - are on the same page.

Further updates are expected once those conversations have taken place.

Liz Mulqueen, from the Friends of the Leas Pavilion campaign group – which has long-fought for the venue’s restoration - says they were also shocked to see the listing on Rightmove.

But having spoken to Mylecke NV they are “relieved to hear that they remain as committed as ever to the project, and have all finance in place to see the project through to fruition”.

She added: “We are in touch with a number of people who have paid deposits on the flats, and they too are relieved - and they, and we, will have a meeting with the developer in the very near future to provide clarity and alignment.”

During the demolition in 2022, former lead developer Gustavia said "everything of historical value" had been removed from the site to allow for safe construction of the new homes above.

Historic items including the terracotta frontage, stained glass, wooden balustrades, and iron gates were to be catalogued and repaired ahead of being reinstalled in the finished building.

A spokesman for Historic England said: “The responsibilities for a site/developer will depend on the circumstances of an individual case, including what conditions or legal agreements are in place.”

Savills was approached for comment.