A £150m mixed-use scheme in Birmingham's Irish Quarter is under threat after the developer behind the scheme went into administration.
Connaught Square, later renamed Rivercross, would have comprised 658 new apartments, a 180-bed hotel incorporating 36 serviced apartments, shops, offices, bars, restaurants, more than 1,000 underground car parking spaces, two new public squares and public amenity space.
But developer Connaught Square Limited, a subsidiary of Naus Group, collapsed into administration after backers Allied Irish Bank decided to withdraw funding.
Neil Mather and John Kelly from Begbies Traynor have been appointed joint administrators for the scheme near Digbeth Coach Station.
“We are in the early stages of assessing the position regarding Connaught Square Ltd,” said Mather.
“It is currently a cleared site following demolition of the existing buildings. No new work had begun.
“We will be examining the options and in due course will be looking to assess what interest there may be from the wider property world. This is an historic site just off the city centre and represents a major opportunity for the right developer.
“We are keenly aware that this is a very important location in terms of Birmingham’s ongoing re-development and will be looking to expedite matters as rapidly as practicable.”
Construction work had been due to start in mid-2008, with the hotel the first part of the project to come out of the ground. The whole scheme was scheduled for completion by 2011.
Earlier this year, another Birmingham development, The Cube, ran into difficulty after Lloyds Banking Group withdrew funding. Construction eventually recommenced after the administrators agreed a deal with contractors working on the scheme.