Retail developer Centros has pulled out of a deal to build a £50m shopping centre in Dumfries town centre, in south-west Scotland.

The deal was announced in August 2007 but now the plan is shelved until the investment market has stabilised and the end value of the property is more certain.

The decision is a big blow to Dumfries and Galloway Council, which had high hopes for the creation of a 200,000 sq ft shopping precinct which would be a major step forward in its Whitesands regeneration area and create a link to the high street. Debenhams had been touted as the anchor tenant.

Richard Wise, Centros’s chief executive, said: “We will retain our ownerships in Dumfries as we still feel the town offers a good regeneration opportunity for the council, the local community and prospective retailers. However, capital values have moved significantly and until the market settles down it is difficult to be sure about the scheme’s viability.”