After four years of negotiation talks, Tesco has decided to pull out of its dispute with St Modwen Properties regarding a £150m regeneration scheme in Liverpool, Project Jennifer, but the fall-out seems likely to carry on for some time as Tesco owns three acres of the 45-acre site.

St Modwen is now courting another major supermarket chain but Tesco is threatening to oppose moves to bring in a rival. And since the retailer owns a piece of the land, this could have repercussions in delaying the entire scheme. Delays could lead to rising costs and, particularly given the current uncertain economic climate, it is not an ideal situation for those that have invested money in the scheme.

Project Jennifer is based around the Great Homer Street area of Liverpool. The 45-acre scheme, which already has outline planning permission, will comprise of 480 new homes, 80,000 sq ft of retail space and replacements to existing light industrial and commercial space. The project will be anchored by what St Modwen claim will be the biggest food superstore in Merseyside at 115,000 sq ft. On completion it is hoped that the regeneration will create 740 new jobs 160 of which will be based in the superstore.

A spokeswoman for St Modwen told PIN: “Contrary to recent media reports the Project Jennifer development is definitely not in jeopardy. I can confirm that St Modwen is in advanced discussions with another supermarket to anchor the development.”