Plans for the transformation of the 12.8-acre (5.2-hectare) Chelsea Barracks site in Westminster, London, have been withdrawn by the company behind the scheme, Project Blue (Guernsey) Limited (PBGL).

PBGL, which is fully owned by investment company Qatari Diar, has revealed that it will now conduct a "comprehensive review" of the proposals after designs drawn up by Rogers Stirk Harbour + Partners were criticised by the Prince of Wales. The residential-led project was set to include a 172,255sq ft (16,003sq m), 108-bedroom boutique hotel with two restaurants and a health spa, a 79,502sq ft (7,386sq m) sports centre with 25m swimming pool and a landscaped public park.

However, a new design competition is expected to be launched after PBGL, which acquired the site from the Ministry of Defence in January 2008 for £959m, revealed that it is already in discussions with The Prince's Foundation for the Built Environment over the future development of the site. Other stakeholders, including English Heritage, Greater London Authority and the Belgravia Residents Association are also set to be consulted before a new planning application is submitted by the end of the year.

A PBGL spokesperson said: "We will continue our extensive consultation process with all our stakeholders, where our focus will be on building a consensus for one of the most important sites in London. "We acknowledge however that there are differing views from various other quarters; we are very grateful to Westminster for the time and effort spent on the process to date and look forward to working very closely with them in the coming months."

However, Lord Rogers - who was behind the designs for the scheme - criticised the intervention of the Prince, while the Royal Institute of British Architects (RIBA) has also expressed disappointment at PBGL's decision. RIBA president Sunand Prasad said: "I am all for the Prince of Wales setting out his principles as regards sustainability and an architecture that connects with nature, but for him to intervene in individual schemes going through the planning process is quite wrong.

"However, I do not see this as defeat for modern architecture; more a case of prince speaking unto prince."