HBG Properties rejects £100m Birmingham city deal

At the eleventh hour, HBG Properties has pulled out of buying a 0.8ha city centre site in Birmingham that would have led to the construction of a £100m mixed-use scheme.

The council's cabinet regeneration member Ken Hardeman told CJ: "We don't know why HBG suddenly decided not to go ahead. Standard conditions were placed on the contract, so I don't think that was the reason.

"It's far more likely that HBG's Dutch owner [BAM] didn't want it to happen."

Hardeman said that the council has now written to at least four other developers, which initially sent in bids for the scheme, to gauge if they are still interested.

And he said that "almost certainly" the scheme would go ahead with a new developer on board.

Carillion and Urban Splash are among the outfits understood to be keen on the deal. Hardeman said that the identity of the new developer is likely to be announced by the end of next month.

No one at HBG was prepared to comment.

[Contract Journal, 9 August 2006, p. 3]