Northampton's £250m revamp deal terminated
A £250m scheme to expand the Grosvenor Shopping Centre in Northampton has been scrapped.
Legal & General and Northampton Borough Council had put forward plans to jointly redevelop the former Greyfriars bus station site in 2012.
The council said the agreement had now been "terminated" by mutual agreement.
The authority is now looking for another partner to develop a "major retail and leisure scheme" on the site.
The new scheme will not be an expansion of the Grosvenor Shopping Centre, which is owned by Legal & General, said the council.
The original development agreement committed Legal & General to extending the Grosvenor Centre back onto the site of the demolished Greyfriars bus station.
It also obliged Legal & General to refurbish the Grosvenor Centre. Work on the revamp has started and is due for completion in early 2015.
The agreement was subject to a series of conditions including "occupier commitment and financial viability".
But the Greyfriars development has not moved ahead and was delayed further while the council and Legal & General opposed plans for a £50m shopping development at Rushden Lakes in east Northamptonshire.
When permission for Rushden Lakes was granted in June the council and Legal & General met again and they have agreed to end their commitment to jointly redevelop Greyfriars.
Legal & General will continue with its £10m investment in the Grosvenor Centre, which will see major stores Next and Primark opening in October and November.
In addition, Legal & General is expected to lodge a planning application shortly to remodel both the Market Square and Abington Street entrances.
The council said demolition of the old bus station and office complex has started and the site will be levelled and ready to market to developers and retailers by December.