Smithfield development 'hits trouble'

A planned redevelopment of Smithfield Market could be shelved as a result of current economic turmoil.

The proposals would see London's meat trading centre developed into a new office block, however this was challenged by the secretary of state's decision to block the project earlier in the year.

As Thornfield, which is the developer, is 50 per cent backed by Royal Bank of Scotland - part of HBOS - it is thought that a multimillion pound appeal of the decision is not a viable option at present.

Thornfield is understood to be revising its plans for the site but the Corporation of London, which is a supporter of the scheme, is unsure if it is a good time to move forward because of the problems at HBOS and the general deterioration of the commercial property market.

Earlier in the month, the chief executive of TD Woodhouse Angus Rigby commented that the proposed merger of Lloyds TSB with HBOS could see it drawn into previously avoided issues including commercial property.

Martin Slowe Property Services are Commercial Property Consultants offering a full range of Commercial Property Services.