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The developer behind a 拢165 million Allies & Morrison scheme in the centre of Winchester has vowed to fight on despite a setback at the Court of Appeal.

A judge rejected a request by TIAA Henderson Real Estate to appeal against the judicial review defeat which threw the Silver Hill project into disarray.

But the developer confirmed it would now be making a second attempt to appeal. It has until May 1 to reapply for leave to appeal by way of an oral hearing.

In February a judge ruled that Winchester council committed a serious breach of the procurement rules when it appointed TH Real Estate, known as Henderson, to develop the council-owned 3ha city centre site on renegotiated terms.

Dame Beverley Lang said the council should have held a competition for a new development partner after it agreed to increase the number of shops in the scheme and to drop the affordable housing element.

Communities secretary Eric Pickles then froze the planning approval while his office decides whether to call in the scheme.

Winchester council leader Robert Humby resigned and the council decided not to appeal.

The Court of Appeal decision to reject Henderson鈥檚 first appeal attempt was welcomed by the Winchester Deserves Better campaign which argues the proposal would 鈥渃ause great harm the historic character of Winchester鈥�.

Martin Perry, director of development at TH Real Estate, said they remained committed to the site.

鈥淲e will continue to listen to all stakeholders and welcome constructive feedback which might improve the scheme and bring forward this much-needed regeneration of the Silver Hill area,鈥� he added.