The £120m Oriental City mixed-use scheme in Colindale, north London, is facing further uncertainty after the development manager behind the scheme said it would continue to delay paying for the site.

Peter Virdee, who owns B&S, the firm that arranged the purchase of the scheme from Development Securities last year, said payment of the outstanding £52m would be deferred beyond the revised deadline of 31 July.

He denied this was caused by the credit crunch, but would not clarify whether he had the funding available.

Development Securities said on 1 July that it had not received payment by 31 June as expected and was deferring the deadline to 31 July.