Telford & Wrekin Council and the developer behind a £1.2 billion revamp of Telford Town Centre today declared a truce in the war over a controversial deal to sell the council’s Civic Offices site to Asda.

Hark Apollo had accused council bosses of undermining the future of Telford’s main shopping centre and its 2,500 workers by agreeing to sell the land to the supermarket.

But the council and Hark Apollo appear to have put aside their differences and announced today they were continuing “positive discussions” into ways they could “deliver their shared objectives”.

Hark Apollo, which bought the centre for more than £400 million in 2007, had unveiled a major redevelopment scheme called The Round, which would have featured a big new Asda store as a flagship.

The developer said today that, despite difficult economic conditions, it was continuing to progress its development plans with a major extension to Primark nearly complete and planning applications recently approved to turn four units in the Central Square area into bars and restaurants.

The council and its partners are also pressing ahead with a proposed regeneration of the Southwater Core area, where Hark is also the largest private sector landowner.

The proposals include creating a new public square, leisure facilities, shops, bars and restaurants alongside homes and offices.

The council has made it a priority to bring forward plans to stimulate the local economy for construction-related activities.

Hark is discussing ways that plans for its land in Southwater might complement these aspirations.

Council leader Councillor Andrew Eade said: “There is so much common ground between ourselves and Hark Apollo that together I believe we can achieve the vision we and our partners share for Telford Town Centre. We recognise those areas where we have differences, but both sides are now exploring ways they can work together more closely.”

Rob Cossey, Hark Apollo director, said: “We are the largest private sector investor in Telford, and, as such, we look to a continuing constructive relationship with the council across a variety of regeneration matters.”

By Lisa Rowley