A Saudi consortium is poised to buy half of Australian developer Multiplex's £3 billion stake in the Cricklewood redevelopment, unconfirmed reports in the financial press suggested this week.

Multiplex owns a 50 per cent stake in the huge shopping, office and housing redevelopment planned for Cricklewood and West Hendon, but rumours have circulated that the company was keen to sell a slice.

Wembley Stadium, another of Multiplex's developments, has been a financial failure, and the comapany's shares recently took a slide in Australia. But the company reaffirmed its commitment to the Cricklewood project this week, despite the speculation.

Andy MacDonald, of Multiplex, said: "We are backing this project absolutely. Despite all the recent publicity about the losses we made on one project Wembley Stadium, Multiplex has put the Cricklewood regeneration at the centre of our plans. We are proud to be part of such an exciting project."

More than 5,000 homes, a 40-storey tower and 12 new shops are expected to occupy the site by about 2011. If the sale does go through, Multiplex is still expected to retain the contract for the project.