Plans for a new £100m mixed-use development adjacent to the WestQuay retail park in Southampton have been given the green light by the city council, despite the scheme being put on hold due to the downturn.

Hammerson, the developer behind the Watermark WestQuay scheme, revealed in its annual results published earlier this year that it does not plan to start work on any major new developments in light of the current economic climate. However, Southampton City Council (SCC) has awarded outline planning consent for the project, which will be situated on a 2.2-hectare (5.4-acre) brownfield site next to the city's historic city walls.

The complex 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. Royston Smith, SCC cabinet member for economic development, said: "This is another important step towards a visionary new development that will truly be worth waiting for. While times may be bleak, we will do all we can to move this remarkable project forward until, there is a new jewel in Southampton's crown.

"The plans for Watermark WestQuay display a visually stunning complex around a new public plaza with the impressive historic walls, forming a spectacular backdrop for a new restaurant quarter and external shopping environment." Despite postponing the scheme, David Atkins, Hammerson's UK managing director, did reveal that the company plans to continue with the design process to ensure that the scheme is able to move forward when conditions improve.