Spanish property company Metrovacesa has opted out of a £300m project in London, putting the scheme in jeopardy.

The Walbrook Square in the City of London has already been delayed due to a legal wrangle between Metrovacesa and freeholder Legal & General.

Metrovacesa has now reportedly incurred a penalty of £100m for opting out of the project designed as a set of 22-storey tower blocks.

The project was designed by architects Norman Foster and Jean Nouvel.