The London Development Agency (LDA) has pulled the plug on a £1.5bn development project that was to be built on LDA land in East London in conjunction with developer Silvertown Quays Consortium.

However it served termination notices on the developer after the development of 5,000 homes, offices, shops and leisure facilities fell into difficulty due to the global financial crisis. The project was granted planning permission in April 2007 but with a plan that included partially financing it through forward sales of homes HBOS bank suspended its funding.

An LDA spokesman said: ‘With regret, after a prolonged period without progress, the LDA has decided to serve termination notices in respect of its arrangements with Silvertown Quays Limited. This decision reflects the Agency’s concern to ensure that this land is released for longer term planning of development at Silvertown Quays which is a key site for the overall regeneration of the Royal Docks’

Silvertown Quays appears hopeful that with a three-month period in which to respond to the LDA notice they can find a funding solution to continue the project.