FTSE 100 landowner pulls £1.5bn London shopping centre plans in row with Green council

FTSE 100-listed landowner Landsec has abandoned plans for a £1.5bn London shopping centre project due to a dispute with a Green-run council over affordable housing. The company, which owns Lewisham Shopping Centre, has decided to "de-prioritise" its redevelopment of the 17-acre site following the council's refusal to cooperate. Lewisham Shopping Centre, which was approved by Lewisham Council in October last year, was intended to include 1,744 flats, student accommodation, and a new shopping centre.

However, Landsec's plans were stalled after the council refused to use compulsory purchase powers to expedite the project without Landsec providing additional affordable housing. The company cited rising costs, complex red tape, and challenging economic conditions as making big projects increasingly difficult in London. This decision comes as developers warn that rising construction costs and opposition from local authorities are making it unviable to build in the capital.

Landsec's move to pause the project was met with approval from some campaign groups, including the Lewisham People's Assembly, who argued that the redevelopment would have caused "mass displacement."