A property development firm has announced that its £4 million investment hangs in the balance as GB Group Holdings Limited has signalled intentions to enter administration.

MJ Gleeson PLC has been told that GB Group Holdings Limited intends to appoint administrators, which could affect the land specialist’s £4.9 million investment.

GB Group is an award-winning property and construction solutions provider and offers clients complete end-to-end property and construction solutions in development, construction and IT solutions.

In a statement to the stock market on the announcement, MJ Gleeson said: “Any subsequent write down will be recorded as exceptional, non-cash, item in the Group's results for the current year ending 30 June 2015.

“Current trading remains strong with the Board remaining confident of delivering an underlying result for the year in line with current market expectations.”

GB Group was working on a £30 million new development of the upscaling of Hilton Leeds Arena Hotel, planned to include a rooftop bar and 206 bedrooms.

A £4.8 million loan was provided by Leeds City Region Local Enterprise Partnership for the project, after it expected it to create economic and employment growth for the city.

MJ Gleeson PLC invested in GB Group in 2005.

More on this story as it develops.