Administrators have been called in to run one of Kent’s multi-million pound showpiece developments.

Paigle Properties of Westbrook have been redeveloping the former Royal Sea Bathing Hospital, but last week London-based accountants Grant Thornton were appointed to take over.

Two companies are affected – Paigle Properties Ltd, which owns the freehold of the land upon which the old hospital stands, and Paigle Margate Ltd, which is responsible for converting the buildings into luxury flats.

A spokesman for Grant Thornton said: “We are currently reviewing the financial situation of both companies while work on the site continues uninterrupted.”

She said it was too early to establish how much money was involved.

Both Paigle businesses appeared before the Companies Court at the Royal Courts of Justice in London last week.

Architects Collado Collins, based in the capital, presented a petition filed in April to wind up the Paigle operations.

Paigle (Margate) Ltd appeared at the same court in June when Crittenden Property Services, which trades as estate agent Clarke and Crittenden in Westbrook and Birchington, also presented a petition for winding up.

Director of the Paigle companies is Jane de Bliek who described the move into administration as “a paper exercise” and confirmed work was continuing as normal at the old hospital.

Up to 250 apartments are planned to be created from the old hospital, dating from 1791.

Ms de Bliek runs Paigle with her partner John Dignam, and they bought the grade II listed site in 2003 for about £5.5 million. The restoration and conversion project was expected to cost about £60 million. The company won critical acclaim from Margate Civic Society for restoring the building which had stood empty since closure in the mid 1990s.

Clarke & Crittenden said this week they still had three two-bedroom apartments for sale. An uncompleted one is being marketed for £175,000, a finished flat for £190,000 and a duplex apartment for £250,000.

Two years ago Paigle Properties bought the former Lido pleasure centre site in Cliftonville with a view to developing that into flats and leisure space. Earlier this year Paigle was in negotiations to buy the Dreamland site, but discussions foundered and Paigle is thought to have lost more than £1 million as a result.

Margate councillor Iris Johnston, who lives near the old hospital, said: “I’m very sorry to hear this news and hope it can be resolved quickly. Jane and John brought a breath of fresh air when they bought the site.”