A £1.5bn regeneration scheme in east London has been shelved after the London Development Agency terminated its agreement with developer Silvertown Quays.
The 27ha development by London City Airport on the Royal Docks has received planning consent 4,900 homes, offices, shops, leisure and an aquarium designed by Sir Terry Farrell. It also featured a sports centre with a 100m sand beach.
However, plans to part-fund the scheme through the forward sale of housing collapsed as property values plunged.
A statement from the LDA said: “The London Development Agency had, with reluctance, served termination notices on Silvertown Quays Limited last year.
“The London Development Agency then had discussions with Silvertown Quays Limited's main backer, the Bank of Scotland. The Bank of Scotland proposed a new development partner and requested some revisions to the planned approach to the regeneration of the site, including a revised timetable for delivery and other changes to the existing commercial arrangements.
“Having considered the information provided, the London Development Agency concluded that it could not accept the proposals.
“The London Development Agency is now considering how best to achieve the future regeneration of the site – a key site for the overall regeneration of the Royal Docks."
Silvertown, a joint venture between former English Partnerships chief David Taylor, US regeneration company Kajima Urban Development International and the Zoological Society of London, now has a three-month period in which to respond.