Insolvency firm Begbies Traynor has taken over the running of Connaught Square Ltd, after the firm became unable to meet repayments on a £24m loan from the Allied Irish Bank.

The existing Connaught Square planning permission allows for 658 homes, a four-star hotel, a new Irish centre, shops, restaurants and a spa. on a 1.8ha site opposite Digbeth bus station.

Joint administrator Neil Mather said he would be trying to garner interest in the site from the property world.

“We are keenly aware that this is a very important location in terms of Birmingham’s ongoing redevelopment and will be looking to expedite matters as rapidly as practicable.”

Last week the Treasury also confirmed it had suspended plans to build a £81m Magistrates’ Court in the heart of the city as part of budget savings at the Ministry of Justice.

In March, BuildAbility, the company developing The Cube was put into administration after it failed to reach agreement with the Lloyds Banking Group over funding weeks before the building was due to complete.