St Modwen could sell Elephant & Castle Shopping Centre

St Modwen, who own the centre in a joint venture with Salhia Real Estate, published their half-year results on Tuesday.

"We remain committed to the redevelopment of the shopping centre and to progress our plans with the London Borough of Southwark to establish how we can deliver a viable scheme that will offer long-term benefit to the regeneration of the Elephant & Castle area," said the company in a statement accompanying its financial results.

"In the meantime, we continue to enjoy a robust income from the existing centre which is 95 per cent let and is included in our portfolio of income producing properties."

However, in its latest presentation to investors, the company has dropped any reference to a timescale for the redevelopment and notes that it will "continue to consider development partner and sale options" for the centre.

Six months ago St Modwen said it was planning to start work on the redevelopment in 2015 but the start date now appears to have slipped by two years.

Last year the company was forecasting a £210 million gross development value for the shopping centre site. The latest report increases that figure to £300 million.

In May local Lib Dem councillors called on the Labour-run council to commence compulsory purchase proceedings to force a redevelopment of the centre.