Lend Lease Corp, the Australian developer building London's Olympic Village, is facing delays in talks to fund the 1 billion pound project after credit markets froze worldwide.

"We are looking to do a debt-equity deal but it has been delayed by what is happening in the marketplace," Mark Gell, a spokesman for the Sydney-based company, said.

"We are still working toward it. We have said around the end of the year. There is no change to that."