Plans for a £100m mixed-use development adjacent to the WestQuay retail park in Southampton have been postponed by the developer behind the scheme due to the economic downturn.

Hammerson, which also created the West Quay shopping precinct, has already submitted a planning application to Southampton City Council (SCC) to transform a 2.2-hectare (5.4-acre) brownfield site next to the city's historic walls. The Watermark WestQuay scheme is set to include a 3,500sq m (37,674sq ft) park and public plaza, a multiplex Cinema de Lux operated by National Amusements, a 150-bedroom hotel, restaurants and cafés, as well as a residential development.

SCC is expected to decide on the planning application in the spring, although Hammerson revealed in its annual results that it does not plan to start work on any major new development in light of the current economic climate. However, David Atkins, Hammerson's UK managing director, said that the company plans to continue with the design process to ensure that the scheme is able to move forward when conditions improve.

Atkins said: "Watermark WestQuay is fundamental to ensuing the city remains a vibrant retail and leisure destination. With the determination of our outline planning application this spring, and the development of our detailed designs, we are looking forward to progressing and continuing with these important development milestones."