Double funding blow for £550m Brighton developments

Brighton and Hove City Council will meet next week to consider the future of its £300m King Alfred centre development after Dutch bank ING withdrew funding for the mixed leisure and housing seafront project.

In a double blow to local work prospects, a £250m redevelopment of Brighton Marina has also been put on hold by Brunswick Developments until the economic outlook is more stable.

ING had been in partnership with local South Coast developer Karis to deliver the King Alfred scheme.

But the bank said: "The volatility of the money markets, along with escalating material and construction costs and the downturn and uncertainty in the residential market have had a major negative impact on the viability of the scheme."

Karis is set to report back to the council next week on alternative plans for progressing the project.

Josh Arghiros, managing director of Karis Developments, said: "We remain committed to the King Alfred project. We are in negotiations with other investors and will be working with the city council to see how the viability of the scheme can be improved."