Irish property group Ballymore has pulled out of the £1.1 billion (€1.6 billion) redevelopment of London's Battersea Power Station after a disagreement with the site's owner, Parkview International.

Dublin-based Ballymore, led by Roscommon-born Seán Mulryan, is believed to have wanted more residential units at the site. Under the existing plans, 10 per cent of the project is to be given over to residential property, an area of particular focus for Ballymore.

Ian Rumgay, a spokesman for Parkview, said the development of the site, which once supplied much of London's power, would start as planned this summer without Ballymore. Ballymore's £400-million stake will now be funded through syndicated loans, said Mr Rumgay.

He declined to say which banks the group was in talks with, but said it was a question of "when and not if" the funding would be finalised. A spokeswoman for Ballymore said the group had made no financial commitment to the development.

The project, which will see one of London's most iconic buildings renovated to include luxury flats, a hotel, offices, retail outlets and an auditorium, would have fitted well with Ballymore's London ambitions as it is the second-largest landowner in the city's Docklands.