Multi Development UK has put the £300m Summer Row development in Wolverhampton on hold after its development and funding partner, a consortium of Northern Irish investors, pulled out of the scheme.
Belfast based Multi, the UK arm of Dutch property company Multi Corporation, said it was still committed to the 600,000 sq ft scheme and hoped to start on site in the latter part of 2009.
Managing director of Multi Development UK Paul Sargent said: ‘Multi Development UK are devastated that NI Investors have not completed on the formal funding agreement within the established timeframe.
‘Without their financial forward commitment to the project we are unable to proceed as planned. As a company we are still totally committed to delivering Summer Row in Wolverhampton regardless of this setback.
‘The recent signing of Marks and Spencer is positive news for Wolverhampton and has generated enormous further interest even in the current retail climate.
'We are in unprecedented times now and should we need to identify new funding partners it will be difficult to do so but we will not give up. We are still confident after the success of Victoria Square in Belfast that we can bring the same regenerative effect to Wolverhampton.’
Multi also this week confirmed it had made around half of its UK team redundant.