National regeneration agency, English Partnerships, will draw up fresh plans for the southern half of the Kings Waterfront development area in Liverpool after the original residential-led blueprint was overtaken by market events.
David McLean and City Lofts were selected to develop a large part of the remaining land into 429 flats in three towers before falling victim to the credit crisis.
The whole southern area of Kings, roughly 15 acres, including two commercial sites close to the entrance off the Strand, will now be remasterplanned by English Partnerships and partners Liverpool Vision, Liverpool City Council, the Northwest Regional Development Agency and the Government Office for the North West.
Kings' northern half is anchored by the Arena and Convention Centre, flanked by two hotels, a car park, public square, restaurant pavilion and a residential scheme by Artisan.
An earlier competition by EP and partners to develop the small commercial sites, both less than one acre, near the southern entrance, has been halted. The proposals ranged from offices to hotels.
EP has already put £70m into the first phase, along with money from the other public partners, including the largest European Objective One grant made on Merseyside, for £50m.
No consultants have yet been appointed to re-masterplan the area.