A major stakeholder of the Whitgift Centre has cast doubts over the proposed takeover by Australian retail giants Westfield.

Royal London Asset Management, which owns 25 per cent of the centre’s leasehold, said it was “surprised” to hear of the proposed move.

It said the Whitgift Foundation had entered into “exclusive arrangements” for Westfield to be the development partner for the site.

A spokesman said: "Whilst we at Royal London are admirers of Westfield's London developments, we are aware of several other major shopping centre developers similarly capable of delivering an excellent scheme in Croydon.

"To achieve the best possible outcome for all stakeholders, we are continuing with the ongoing process of identifying the most appropriate partner with which to move the development forward and are excited by the opportunity that this presents."

The other stakeholders include Anglo Irish bank, which controls 50pc of the leasehold.

Yestderday Westfield announced it was looking to create its third cente in London by redeveloping the Whitgift Centre.

Michael Gutman, Westfield's Europe managing director, said: "There is the potential for a major retail scheme in this strategic market which has been identified in the past by the John Lewis Partnership as a possible key location.

"The local authorities have very high aspirations to implement a major retail scheme and the regeneration of the town centre."

Westfield already have two major shopping centres White City and in Stratford, East London which opened in September.

Council leader Mike Fisher said: "Westfield's proposed investment is the latest exciting development for Croydon and a further sign of the growing business confidence in our borough.

"It sends a very strong signal that we are on course and on our way."