Canterbury City Council leader John Gilbey still believes a £450million regeneration of Wincheap can happen despite losing their development partner.

The masterplan for the industrial estate has become the first big casualty of the credit crunch in the city centre.

On Friday it was confirmed that Capital and Counties, has pulled out of the project because of the economic downturn.

"We have to look at this now as an opportunity having stopped it, as a chance to make progress, bring more people on, look at other options and alternatives," said Cllr Gilbey.

He added: "The objective is still there, the complete rehabilitation of the whole site."

• Audio: John Gilbey tells Adam Williams why the developers have pulled out >>>

The ambitious redevelopment of the industrial estate area includes new retail and housing, as well as plans to move the A28 and the current park and ride site.

The council says it is now reviewing options for taking the scheme forward for when the economy improves and “remains excited by the prospects a regeneration programme could bring.”

They include considering a smaller scale investment to allow Wincheap business and leaseholders to invest in their properties in the short term.