£500m Portsmouth retail scheme goes ahead

Design changes are currently being thrashed-out on a £500m shopping centre in Portsmouth, which was put on hold earlier this year.

Sources close to the Northern Quarter scheme said the project is certain to go ahead despite the delays caused by the credit crunch.

Developer Centros is expected to reveal revised plans in December, with construction scheduled to start next year.

Funding fears caused a hiatus earlier this year in the scheme to replace the notorious Tricorn Centre in the city.

But one source said: "The job will definitely go ahead because deals have already been struck with John Lewis and Marks & Spencer to be anchor tenants.

"If the job was ditched now then it would be a legal nightmare, so it is sure to proceed in some form."

The job was originally due for completion in 2011. Original plans contained one million ft² of mixed-use space, alongside 200 apartments.

A Centros spokesman denied the project would be scaled down. He said: "We are totally committed to the delivery of the Northern Quarter development.

"While the scheme is undergoing a design review, we are confident the outcome will result in a strengthened and much improved development for the regeneration of Portsmouth city centre."

John Lewis head of retail development Jeremy Collins said: "We are wholly committed to Portsmouth and therefore fully support Centros's initiative to review and venhance the design of the project."