AIB moves on property developer
Published 18/06/2010 | 05:00
AIB HAS appointed administrators to an Irish-owned company which had been planning a €180m development in Birmingham, England.
Connaught Square Ltd, a subsidiary of the Naus Group, which developed the €140m Ashbourne Town Centre, owes less than £25m to the bank. The bank's loan is secured against the 4.5-acre undeveloped site in east Birmingham.
Naus Group chief executive Ronan Mellett said the move would not affect the group's other projects and it is advancing a number of these in the UK.
The Ashbourne development has been considered a success with Tesco as its anchor.
All but three of its 435 residential units sold and 75pc of its retail space has been let.
Mr Mellett also said that Naus has been in discussions with a number of prospective funding partners for the Birmingham project and he hopes to develop these options in the coming weeks.
While the original plans envisaged a mainly residential development, he believes that by focusing the first phase on the hotel and on 128 of the residential units, it is fundable and could be developed in the near future.