Developers leading the transformation of a historic seafront landmark have quit the project.

In a shock announcement, Belgian firm Gustavia said it is stepping down from the controversial Leas Pavilion scheme in Folkestone.

Serious question marks now hang over the future of the project after the firm gave up its 50% stake in Leas Pavilion Development Ltd, the parent company which owns the site.

It has been involved in the regeneration of the Edwardian pavilion since 2019 which will eventually see 91 flats built in a new nine-storey building wrapping around the former tea room and club.

But in recent months work has repeatedly stalled despite two concrete towers being erected to house the main lift and stairway columns to serve the apartment blocks.

Gustavia director, Olivier Daelemans, has also resigned as a shareholder and director of Leas Pavilion Development Ltd but when asked by KentOnline he would not be drawn on the future of the project or the new ownership of the site.

His departure leaves Belgian developer Mylecke NV as the only known representative in the project - the firm has been on board since 2021, according to Companies House records for Leas Pavilion Development Ltd.

Mr Daelemans said his firm has left the project due to “different ideas about how to proceed with the development”.

In a statement, he added: “Our team wishes Leas Pavilion Development Ltd, represented by Mylecke NV, every success with the development of Leas Pavilion.”

Now that Gustavia has departed the project, it is not yet clear how the development will proceed.

It has also not been confirmed whether Ant Yapi will continue as the project's main building contractor.

A spokesman refused to answer questions when contacted by KentOnline this week, while Mylecke NV has not responded to a request for comment.

The scheme’s main PR consultants are also yet to reply to this website’s approaches.

The announcement comes as campaign group The Friends of Leas Pavilion, which has long fought for the building’s restoration, stated they remain confident the project will be completed.

In a statement, they said: “It is our understanding that due to some fairly unforeseen circumstances (such as the demand from KCC to construct an extra sprinkler tank on site at vast expense, which had not been in the original approved plans) the original developer was forced to bring new partners on board for the construction to continue.

“They have very recently handed complete control of the project to the new partners.

“We always had a very good relationship with the original developers and are currently awaiting more details and to be put in touch with the new people, which should happen very soon.

“In the meantime, it is our understanding that work will resume shortly, once new timetables have been put in place, and that Ant Yapi, the original contractors, will remain as such. The original plans - including restoration of the Leas Pavilion - remain in place.”

“We too, have been understandably concerned but have been quite reassured over the past few weeks that all will proceed as planned.”

Since the pavilion was demolished in 2022, developer Gustavia has only completed groundworks and the erection of the two stair cores as part of the project on the clifftop promenade.

‘We too, have been understandably concerned but have been quite reassured over the past few weeks that all will proceed as planned…’ - Friends of the Leas Pavilion

The historic frontage is set to be restored later as part of the overall build.

This latest snag is not the first time questions have been raised over progress at the Leas Pavilion.

The developers previously dispelled rumours the project would not be completed as “completely untrue” and confirmed construction was “due to recommence” when work halted in April.

At the time, work had been progressing at a slower rate due to the installation of a new sprinkler tank in the basement of building.

But in August, with work yet to restart, residents once again began questioning whether the luxury flat project would ever be completed, commenting on the shocking state of the site.

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The pavilion was originally built in 1902 as an Edwardian tea room and was later home to the popular Leas Club nightspot.

Eventually, the nine-storey project is set to feature plush sea-view apartments looming over The Leas - ranging in price from £325,000 for the smallest one-bedroom flats to £3 million for the significantly larger penthouses.

Bosses previously said their scheme was the best hope of preserving the Grade II-listed building, with the front elevation undergoing careful reconstruction away from the site before being set to return as part of the completed development.

As the local planning authority, Folkestone and Hythe District Council have confirmed they are “actively seeking further clarity from interested parties”.