THE DEVELOPER behind a major homes project in Bradford city centre has gone into administration - leaving the future of a building in doubt and investors out of pocket.

Pinnacle (Bradford) Limited was behind plans to build 126 one and two bedroom student and family apartments in the Xchange building - formerly Arndale House - but the company has run out of cash.

The development, on the corner of Market Street and Charles Street, was backed by a range of investors and buyers and the Telegraph and Argus understands some paid as much as 80 per cent for a £57,000 apartment up front to allow for the development to go ahead.

Pinnacle (Bradford) Limited is an arm of Pinnacle Alliance, a Manchester-based company.

The development is described on its website as "consisting of 126 high-quality one and two bedroom apartments suitable for young professionals and families alike. Further benefits include a rooftop garden and car parking facilities.

"The Xchange represents an affordable entry-level residential investment opportunity in a growing city with great potential for capital growth."

One investor, who declined to be named, said they had spent weeks trying to get information from the company about the apartments after fearing the homes would not be completed.

They said: "They kept saying it is taking longer because they were trying to sort something out.

"We tried to request some information about where the finances are going and as investors we have the right to do that."

Business advisory and restructuring firm Quantuma has now been appointed administrators.

Quantuma director Simon Campbell said: “Pinnacle (Bradford Ltd) is a special purpose vehicle that has been funded up front by investors and buyers. The Xchange is part-built but the development has run out of money.

“It requires a fresh start so that further funds can be introduced and the build-out completed for the benefit of all stakeholders.

"We will need to work with all parties here to ensure that every opportunity is explored to bring about a successful conclusion."

It was announced four years ago that the building was to be re-branded as the Xchange.

London-based Augur Investments bought the former Arndale House from Bradford Council in 2011 and the bottom two floors consist of a gym and Esquires Coffee.

Alan Hall, vice chairman of Bradford Civic Society, believes the building needs to be re-developed as soon as possible.

He said: "Our view has been property conservation and buildings with historic value should be preserved and turned into other uses and not demolished, as is sometimes the case.

"Rather than buildings being left empty or demolished we would want to support anybody who would want to develop anything that brings footfall into the city centre.

"Hopefully somebody will pick up the challenge and develop it in an appropriate way.

"It's interesting because I don't think the building is the most aesthetically pleasing in Bradford, but at the same time I don't want it to be left empty."

A spokeswoman for Bradford Council, said: “As this is a private sector development we’ve had no direct involvement with the work at The Xchange.

"We are aware that Pinnacle (Bradford) Limited who were developing the residential apartments have now gone into administration.

"We are hopeful that work will be able to restart shortly, as this area of the city centre has seen a lot of successful private sector development in the last few years and the opening of the new cinema with bars and restaurants is just around the corner."