Wollongong's highly anticipated $311 million West Keira development has been shelved for at least two years.Developer giant The GPT Group decided this week to delay construction of its massive retail precinct as it comes to grips with the downturn in global markets.The development was the centrepiece of Wollongong's revitilisation of Crown St's west end, an area described by one shop owner as "like downtown Beirut".The shopping centre was the jewel in the crown of Wollongong's shopping stretch.It included a supermarket and speciality shops as well as a 760-seat food court with 11 food outlets, four kiosks and a multi-screen cinema complex.Three car parks were planned to accommodate more than 800 cars.West Keira's delay now has the potential to worsen the economic stagnation suffered by shops in the area.In April, an optimistic GPT said it hoped to send the bulldozers in within months, but worsening market conditions led to a decision to delay construction.The development is one of $2 billion worth of projects GPT is reviewing and possibly shelving until market conditions improve.Only yesterday the global credit crisis hit its lowest point, when United States investment banking giant Lehman Brothers declared bankruptcy, placing in jeopardy $74 billion in mortgages.GPT said despite the global financial crisis it would continue with refurbishment plans for Wollongong Central, which it hopes will revitilise the Crown St Mall district.Head of retail Mark Fookes said although GPT was "committed to the Wollongong market for the long term", the company was not prepared to start building just yet."We are extremely positive about the region and the market here, but the deterioration in the global investment market has had an impact on ... the risk and return profile and put us in this position," Mr Fookes said."So rather than undertaking the refurbishment of Wollongong Central and West Keira simultaneously ... we are going to refurbish the existing Wollongong Central and delay the West Keira site."The full development was expected to create 6055 jobs in the region, with 1190 direct jobs during construction and 871 in day-to-day retail operations, and expand the retail floor space in Wollongong Central to 52,373sqm.The decision comes as GPT faces criticism for a series of investment blunders which last month saw it announce the sell-off of about $2.5 billion in assets.West Keira's delay could also have consequences for the planned upgrade to Crown St Mall.Wollongong City Council was counting on $3.6 million in developer contributions from the West Keira development to fund part of the mall's redevelopment.The council has delayed a planned discussion paper on the issue from September to October as it decides what to do with the pedestrian walkway.GPT yesterday reiterated its long-held position that the mall should be transformed into a pedestrian friendly street, with low traffic volumes."If you look at the great streets of Australia and the great streets of the world they are typically trafficked streets," Mr Fookes said. "Certainly dining precincts in our experience have prospered when there is access to on-street activity rather than a passive space - it creates a better vibrancy and outlook."* The author has shares in The GPT Group.