The group also said construction work and pre-sale of the property has been temporarily suspended until the Macau government reaches a final decision regarding land transfers.

“In case the land transfers become invalid, Moon Ocean will seek legal advice on the appropriate actions to be taken in respect of the La Scala project and may consider entering into cancellation agreements with unit purchasers of La Scala and refund deposits received.” (Moon River is an entity to which the land rights were granted by five Macau companies.)

On the CEG’s website, it describes La Scala project as follows: “Located in the Cotai Strip region, the most prosperous developing area of Macau, La Scala occupies a total gross floor area of over 5.7 million square feet. Phase 1 of the development comprises 9 towers, offering about 899 units. Investing over HK$20 billion (around $2.57 billion), the group aims to build La Scala into Macau’s largest waterfront luxury condominium.”

According to Forbes, the announcement follows alleged corruption by its chairman, Joseph Lau, who faces bribery and money laundering charges. The Hong Kong-based developer said it received a preliminary hearing notice last week from the Land, Public Works and Transport Bureau of Macau (LPWT), that the chief executive of Macau has started the procedures to invalidate the land transfers involving the project.

Lau is ranked the 5th richest in Hong Kong, with an estimated worth of $6.5 billion, the publication says.