THE boss of Australian developer Lend Lease today blamed the slump in the retail and residential property sectors for its decision to pull out of Stockport's £500m flagship regeneration scheme, Bridgefield.

Robin Butler, deputy chairman of Lend Lease Europe, said the company was looking to reduce its exposure to the UK market.

He said that, having been involved with the Stockport project for several years, the scheme now required `significant investment', which Lend Lease was unable to provide because of market conditions.

He said funding was not an issue - Lend Lease, he said, was not, like some peers, over- borrowed.

"Currently the UK presents a number of challenges and other markets are not as challenging.

"There are a number of other projects where we have reached the same conclusion."

Mr Butler said he was `disappointed' that the group was not able to proceed with Bridgefield, and his personal view was that it will `be built in some form'.

It is understood that the company, which recently had to write down the value of its stake in the Bluewater shopping centre in Essex and is negotiating with the government about its contract to build the Olympic village in London, has spent several million pounds on the Bridgefield scheme.

Mr Butler said he would be happy to meet Stockport council leader, Coun Dave Goddard, to explain the decision.

Coun Goddard said: "This is obviously a setback, but we are big enough to deal with it … Stockport is a good place for developers to do business."

Bridgefield's plan included 650,000 sq ft of new shops, 80,000 sq ft of leisure and dining outlets, a cinema and 250 apartments. Construction had been expected to start in 2010, with the scheme being completed three years later.

Lend Lease's exit has sent shockwaves across Greater Manchester. Keith Davies, director of development and regeneration at Bolton council, said: "From a city region point of view, the news is clearly disappointing, but I think now is a time for developers to hold their nerve. Greater Manchester remains an attractive propostion for investment."

Karen Hirst, development director at Central Salford urban regeneration company, said there was general unease regarding speculative development, but all the major Salford projects were on track.
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