Land Securities and Standard Life have won their first legal challenge to the 1 million sq ft (92,900 sq m) shopping mall proposed for the former Ravenscraig steelworks site south of Glasgow.
A judicial review found that the local authority exceeded its powers when granting town centre status to the site.
The two landlords own major retail schemes at Hamilton and East Kilbride, which stand to lose trade if Ravenscraig goes ahead.
Last week, they argued successfully before Lord Justice Carloway that North Lanarkshire Council had been wrong to grant town centre status to the site before the Scottish Executive's appeal process had been concluded.
The Ravenscraig Partnership - made up of developer Wilson Bowden, steelmaker Corus and Scottish Enterprise Lanarkshire - had been awarded consent to redevelop the 1,100 acre (445 ha) site into a town with 3,500 homes, 900,000 sq ft (83,610 sq m) of retail space and 2 million sq ft (185,800 sq m) of industrial and office space. US developer Mills Corporation has been in talks to develop the retail element as its first UK project.
The legal spotlight will now move on to the Scottish Executive. Another court hearing is scheduled for September, when the two objecting landlords will challenge ministers' decision to overturn the Glasgow and Clyde Valley Structure Plan, enabling Ravenscraig to be designated a town centre.
Wilson Bowden Scottish director Jim Fitzsimons said he was confident the project would not be delayed by the legal wrangles. 'This doesn't affect the project at all,' he said. 'The key decision will be the September hearing.' He added that residential development should begin on-site next year, with the shopping centre beginning 'within a year or two'.
- Mills Corporation has appointed Ronald Weidner as director of international operations. He joins from West Wind Capital Partners.
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