Seafront towers scheme abandoned

The controversial scheme was designed by architect Frank Gehry

Plans to build two towers, designed by architect Frank Gehry, on Hove's seafront have been scrapped.

Developers Karis had been seeking other funds since the Dutch bank ING pulled out of the £290m redevelopment of the King Alfred leisure centre in July.

Karis director Josh Arghiros said the towers would not be built due to the downturn and he wanted two more years to work on new plans for the site.

Brighton council is set to respond to his request later this month.

Mr Arghiros said the development firm had worked hard over the past six years to deliver the scheme.

But he added: "No-one could foresee the downturn of the market and the way it's gone - we're in a financial meltdown at the moment."

Volatile markets

Planning permission for the scheme, which would see flats, restaurants and cafes built on the site, was granted in March 2007.

The controversial "crumpled" design included 754 flats in two towers and several lower blocks, and about 40% was to have been affordable housing.

Plans also included a £48m sports centre with a multi-coloured domed roof.

In July, ING Real Estate pulled out because of volatile money markets and the housing market downturn.

Mr Arghiros said Karis might approach the bank in the future with alternative plans for the site.