Developer behind Birmingham's Cube goes into administration

The developer behind Birmingham’s £100m project The Cube has gone into administration.

Directors at the Birmingham Development Company and contractor BuildAbility said they were “bitterly disappointed” after being unable to reach an agreement with Lloyds Bank to enable the development to be funded to completion.

In a statement they added: “It is a sad day for The Cube, an ambitious project for Birmingham, into which we have put five years of our lives, but like many development projects across the UK, it has succumbed to the pressures of the global economic downturn, which followed the credit crunch.”

Administrator PricewaterhouseCoopers has said it will not try to sell the business as a going concern, but there will be talks with private investors in a bid to finish the 23-storey mixed-use tower.

The Birmingham Development Company was forced to take on construction of the project itself in 2006 after Taylor Woodrow unexpectedly pulled out of the scheme.