Is Park Place development set to collapse?
The two developers responsible for a new shopping centre planned for Croydon have ended their tie-in agreement leaving the future of the development in jeopardy.
Minerva and Lend Lease will officially end the agreement for the one million square foot Park Place shopping centre on April 17.
In a statement released today Minerva made the announcement, which would have seen Lend Lease buying a 50 per cent stake in the scheme.
A spokesman said: "Both parties will review the nature of Lend Lease's continuing role in the project as development manager."
It is understood that the decision has been made after Lend Lease failed to secure John Lewis as an anchor tenant.
However Minerva said it remained focused on developing Park Place and said that "discussions with the potential anchor tenant continue to progress."
The spokesman added: "Active and constructive discussions with interested parties for the realisation of the Park Place scheme and the termination of the arrangements now provide greater clarity to the project in this regard."
The news caused Minerva's shares to fall 7.5 per cent 113.25p.