Dutch property company HBG Properties has withdrawn its bid for a key Birmingham City centre site

Dutch property company HBG Properties has withdrawn its bid for a key Birmingham City centre site after its board withdrew support for the scheme.

Birmingham City Council selected HBG Properties as preferred bidder for its 2-acre Great Charles Street site last month.

But HBG withdraw at the point of signing contracts last week when its International Board overturned their National Board’s approval of the scheme.

The council with agent Lambert Smith Hampton is now searching for alternative developers for the scheme that will include offices, flats and shops to form a link between the city's central business district and the Jewellery Quarter regeneration area..

The news is a blow to the council as it is the second time a developer has walked away from the site. Last year talks with preferred developer Amec collapsed. The price is thought to have exceeded £23m.

Regeneration chief Councillor Ken Hardeman said: ‘We’re obviously disappointed that HBG did not deliver what they offered. It’s not a major problem because we have so many other interested parties waiting in the wings. I’m confident we will secure the quality of scheme this site deserves because of its superb location in the City Centre and closeness to the Jewellery Quarter.”

A decision on a new preferred developer is expected in September.

The council had an agreement with Amec dating back to 1998, when it had earmarked the site for the city's coach station. Amec drew up plans for the Queensway coach station, but another site was found.