A huge £250m plan to transform the Leisure World site in Southampton has "stalled" amid fears the scheme is no longer viable.

Three years ago Sovereign Centros was given outline planning permission to build 650 homes, two 150-room hotels, and a cinema on the site.

City councillors were told the landmark development would create 1,000 jobs, but no real progress has been made.

Now Associated British Ports (ABP) has submitted plans to use the council-owned land at West Quay Road for port-related parking and vehicle storage for up to five years.

It is also seeking consent to demolish most of the Leisure World complex and the former Quayside pub.

READ MORE: Plan to transform Leisure World site given go-ahead

Daily Echo: A CGI of the £250m scheme that was approved by Southampton City Council in 2021A CGI of the £250m scheme that was approved by Southampton City Council in 2021 (Image: Macgregor Smith/Corstorphine+Wright)

Daily Echo: An aerial view of Southampton, including a CGI of the scheme approved in 2021An aerial view of Southampton, including a CGI of the scheme approved in 2021 (Image: Macgregor Smith/Corstorphine+Wright)

An ABP spokesperson told the Daily Echo: "Plans for the site to be redeveloped have stalled. We have stepped in as part of our ongoing major investment to ensure Southampton remains a world-class maritime city and to spur the long-term renaissance of the waterfront."

ABP's application to use Leisure World for parking cites an "opportunity" that has arisen.

It says: "The site is vacant and has been for some time as a consequence of the stalled development proposal which the developer recognises is no longer viable.

Daily Echo: An aerial view of Southampton city centre, including the Leisure World siteAn aerial view of Southampton city centre, including the Leisure World site (Image: Macgregor Smith/Corstorphine+Wright)

"ABP’s proposal is an interim use of the site pending the delivery of the city council’s long-term aspiration to redevelop the wider area.

"Whilst these plans emerge, ABP is proposing to remove the redundant buildings, improve the immediate street scene, and open up views of cruise ships visiting the port."

READ MORE: Start date for redevelopment of former Leisure World site announced

It comes after ambitious plans to transform part of the waterfront have been submitted by the Nicholas James Group.

The £200m scheme to redevelop Town Quay includes a luxury five-star hotel and four tower blocks overlooking the marina. In total, 460 flats would be built alongside restaurants, cafes, and shops. 

Daily Echo: Plans to redevelop the former Leisure World site were approved by the city council in 2021Plans to redevelop the former Leisure World site were approved by the city council in 2021 (Image: Newsquest)

The application says ABP's proposal will provide parking for cruise ship passengers, cutting congestion on some of the city's roads.

But Royston Smith, Conservative MP for Southampton Itchen, said he was "disappointed" that another project in the city had stalled.

A city council spokesperson confirmed the developer had not been able to progress the scheme, which was approved in 2021.

The Daily Echo approached Sovereign Centros but the company did not respond to a request for comment.