Australian theme park operator Village Roadshow has abandoned plans to acquire Aussie World on the Sunshine Coast and develop a Wet'n'Wild water park at the site.

The company announced in May 2008 that it had entered into a conditional agreement to acquire Aussie World and in August of the same year, submitted a development application for the AUD$70m (£34m, US$67m, €43m) Wet'n'Wild Aussie World.

However, in a statement last week, Village Roadshow announced it would not be proceeding with either the development or the purchase of the existing park.

"After extensive research, review and planning, VRL considers that when compared with other opportunities available, the potential returns do not justify the level of investment for the world class water park which would be required to deliver a significant destination site," the statement said.

"VRL announces that directors have therefore resolved not to exercise their option to acquire Aussie World."

While the announcement is a huge disappointment for Aussie World, it could put plans for the nearby AUS$110m (£53.5m, US$105.7m, €67.6m) Adventura Waterpark back on track. The scheme has been in the planning for more than five years and would be located just a few kilometres away from the Aussie World site, opposite Sunshine Coast turf Club on Caloundra Road.