CONTROVERSIAL Liverpool developer Bill Davies is causing a stir in America, after reportedly buying Chicago’s iconic former post office for £24m.

He won the right to buy the 2.5m sq ft building in downtown Chicago for $40m at auction.

It is the second time Mr Davies has bought a former post office – he owned the one in Liverpool’s Whitechapel for 17 years.

In 2003, he sold it to Manchester-based developers Milligan, who transformed it into the upmarket Metquarter shopping centre, which opened its doors in March, 2006. Mr Davies, who previously owned Aintree Racecourse and the city centre Exchange Flags, was often criticised for a lack of progress on developing his assets.

His business dealings in Liverpool came to an end in November last year when he walked away with £2m after settling a legal battle with the city council.

According to reports, he wants to convert Chicago’s former post office into a shopping mall with free indoor parking.

Liverpool-based Sadler management, which handles the affairs of Mr Davies’s Walton Group, last night said the company had no comment to make when asked about his recent purchase.

But politicians in the Windy City expressed concern over the deal, after his record in Liverpool was revealed.

Chicago’s Alderman Robert Fioretti told the Post: “It’s one of the largest buildings in America and is going to take a lot of work.

“The new owner will be responsible for all the upkeep and maintenance, all of which are going to be quite expensive.

“And it will take up to 18 months to go through all the processes like the design and getting the permits.

“It’s the biggest eyesore in the city right now. I hope he's ready to proceed at a quick pace.”

The identity of the purchaser was originally kept secret after Mr Davies chose to remain anonymous, posting the winning bid under the name International Property Developers North America Inc. But Alderman Fioretti revealed his identity.

According to reports, bidders in the August auction dropped out between the $10m and $11m mark, leaving only Mr Davies and a representative of Chinese investors.

The building is said to have an asbestos problem and could cost between £450m and £600m to redevelop. Previous ambitious plans for it fell by the wayside when the credit crunch bit the USA.

Mr Davies is reported to have paid a £4m deposit. The US Postal Service wants to conclude the deal by the end of the month to get the building off its balance sheet by the end of the US fiscal year.