The Dublin Docklands Development Authority has put on hold the development of the U2 Tower for 12 months to allow property and financial markets to improve.

The Geranger consortium had been selected as the provisional preferred bidder to design, construct and finance the U2 Tower late last year.

Geranger consists of Ballymore Properties, Patrick McKillen and August Partners (U2 band members and management).

The Authority said that negotiations on the deal were suspended "to allow for an improvement in the current uncertainty surrounding the property and financial markets".

It added that it continued to have "full confidence" in the project, which is an important element of its master plan for the docklands area.

The Tower was to have included a hotel and residential and retail areas, as well as a recording studio for the band.