The Leighton Holdings-backed Devine Property Group has shelved plans to build a A$300m Brisbane office development, triggering a A$7m earnings guidance downgrade to the Queensland-based developer.

The joint venture development between Leighton Properties and Devine at 145 Ann Street is the latest major Australian office tower to be delayed or cancelled amid the economic downturn.

Devine said net profit for the 2009 financial year was expected to be in the range of $15m to $17m, after initial expectations in January of a net profit of between $23m and $25m.

The deferral will also affect global construction giant Leighton Holdings, which is a major shareholder in Devine.

The Australian