NEWPORT city council members were reassured that the Friar’s Walk development will go ahead, despite the withdrawal of one of the developers.

As the Argus reported, developers Modus withdrew as a source of capital for the £200 million centre in December, due to financial restructuring. The project was initially a joint venture between Modus and Corovest.

Council leader Matthew Evans told the full council meeting on Tuesday that Corovest have confirmed their commitment to the scheme.

He said: “Corovest’s intention is to be on site later this year and Modus are acting as development advisers to them. Active discussions are continuing with Corovest with a view to securing a start to the Friars Walk project.”

Mr Evans said exact arrangements were still being discussed between the two companies.

Friars Walk is set to include dozens of new stores, including Marks and Spencer and Debenhams, a cinema, restaurants and apartments.

Opposition leader, Councillor Bob Bright said: “There is a great deal of concern in the ward. It is absolutely vital that this development goes ahead.”

Councillor Ed Townsend, cabinet member for economic development and regeneration, said: “A number of similar developments in similar towns and cities have fallen by the wayside.

“They have been dropped by the local authority or the developers. That has not happened in Newport. Because it is such a complex, delicate, difficult and important situation, I’m not going to make further comment on what will happen. Confidence is absolutely vital in this current economic climate.”