Southampton council is looking for a new developer for City Lofts’ £50m Northern Above Bar scheme in
City Lofts had planned 282 flats in glass towers up to 18 storeys high, with a £13.7m arts complex on the lower floors.
The development was central to the council’s bid to create a cultural quarter in the city. The former Tyrrell & Green department store was to be demolished to make way for the scheme.
Southampton councillor Royston Smith said: “Although this is clearly a setback, Southampton council will be seeking a new partner to take the scheme forward and remains committed to regeneration of the area.”
The council says it is “optimistic” about finding a new developer for the scheme.
However, local agents have expressed some concerns about the development going ahead in the current slow housing market.
The site has been awaiting regeneration since previous developer Raven pulled out due to financial difficulties four years ago.
City Lofts put 250 unsold flats into receivership this month, before appointing Jon Gershinson of Allsop as receiver.
