A company set up to redevelop part of Birmingham’s Irish Quarter as a £150m mixed-use scheme has gone into administration.
The company, which was set up by private Irish developer Naus Group, collapsed after the scheme’s backers, Allied Irish Bank, decided to pull funding.
As a result the future of the 4.5-acre Connaught Square project – tipped to become the Brindleyplace of the east side of the city – is in jeopardy.
The scheme – rebranded as Rivercross – is now in the hands of insolvency firm Begbies Traynor. Neil Mather and John Kelly have been appointed joint administrators.
Ronan Mellett, Naus Group’s chief executive said the company is working hard to get the site back from the administrators: “It is absolutely our intention to get the site back and build it out. We have revised the scheme to make it more financially viable and we now have a number of funding options on the table”
Mellet said that talks to secure funding for the first phase of the development were still going. “We’re looking at bank funding as well as trying to secure private equity. We want a deal on the table in the next six to eight weeks. ”
Begbies Traynor’s Mather said: “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 a historic site just off the city centre and represents a major opportunity for the right developer.”
The original plans for
Work was originally due to start on site in 2008 with the scheme due for completion in 2011.
Savills is advising Naus Group.
lisa.pilkington@estatesgazette.com
