The future of a £57m housing development at Chatham Waters hangs in the balance after a major construction company fell into financial problems.

Forrest Construction, which has been contracted to build a block of flats overlooking the Medway Estuary, issued a statement saying it had made "a series of incorrect pre-construction estimates" on some of its projects.

It has meant the 199 apartment scheme, which is part of a wider £650m masterplan by Peel Land and Property, has been put on hold.

It is understood more than 100 jobs could be at risk.

The site is being developed by the firm X1.

The 26-acre former dockyard site has already become home to Medway’s university technical college and an Asda superstore.

Once complete it will also include 950 homes, 430,000 sq ft of office space and a hotel.

Forrest's chief financial officer Keith Reid said: “We have been working with FRP Advisory in an advisory capacity over the past few weeks to explore options for the business.

“Our main priority is to find a solution that works best for our customers, employees and suppliers, and we are doing all that we can to secure the long-term future of the business.

“We have faced a number of challenges across our construction division.

"The projects, started prior to the March 2017 refinance, have experienced significant time and cost overruns due to liquidity and operational challenges prior to the refinance.

“In recent months, it has also emerged there have been a series of incorrect pre-construction estimates on certain new construction projects.

“We recognise the uncertainty of the position is extremely difficult for our customers, employees and suppliers and we appreciate their continued support.

"We will provide a further update in due course.”

Work has reportedly ground to a halt at multi-million pound projects in Chester, Salford and Liverpool in the north west where the Bolton company is based.

Medway Council spokesman Celia Glynn-Williams said Chatham Waters was among a number of regeneration schemes across Medway and she was confident it would “get back on track”.

George Peck, 17, a student at Waterfront University Technical College, had been due to carry out work experience on site.

He said as a young person studying construction with ambitions to become a property developer, he was “deeply saddened” Forrest was experiencing some problems.

He said: “Being passionate about the local area and the regeneration going on in Medway, I would stress that young people shouldn’t be put off by joining the construction industry.

"I remain positive Medway will continue at the rate of its highly successful regeneration programme.”