Woking Borough Council plans to sever ties with its Victoria Square development partner Moyallen.
The Northern Irish developer owns 52% of the development and the council owns the remaining 48%.
The regeneration project, intended to cost £150m but actually costing £700m, was one of the main factors that led to the council racking up nearly £2bn in unsustainable debt.
Council leader Ann-Marie Barker said plans were being made to sever relations with Moyallen.
She said: “The intention, always, with the relationship with Moyallen was that it was there for the development period [at Victoria Square], and that the relationship would come to a natural end at some point.”
The details come as Bank of Ireland placed four of Moyallen’s other operating units into administration over debts of £188m. The units include two entities used to control the Peacocks Centre, a separate 1990s shopping centre adjacent to Victoria Square.
