The planned £450million redevelopment of part of a Kent city has become a big casualty of the credit crunch.

Canterbury city council has announced development partner, Capital and Counties, has pulled out of the project because of the economic downturn.

It means the ambitious regeneration of the Wincheap industrial estate area with new retail and housing has been shelved for the foreseeable future.

The council says it is now reviewing options for taking the scheme forward for when the economy improves and "remains excited by the prospects a regeneration programme could bring".

They include considering a smaller scale investment to allow Wincheap business and leaseholders to invest in their properties in the short term.

Council leader John Gilbey said: "It’s disappointing to be parting with a company of Capital and Counties standing after such a positive relationship."

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