Plans for a £25 million party yacht that would have held late-night events for up to 1,000 people on the River Thames, stopping off at North Greenwich pier, have been abandoned following a storm of protest from residents and local politicians.

Smart Group, the company behind Oceandiva, announced on Thursday that the vessel,  longer than the world’s biggest commercial jet, would be leaving London and returning to EU waters.

The events firm had hoped to host high-end weddings, conferences and exhibitions on the mega boat. But critics feared it would attract antisocial behaviour and harm the environment.

Chloe Jackson, the managing director of Smart Group, blamed “regulatory challenges”” and ‘infrastructural inadequacies’, in a letter announcing the company was scrapping the plans.

She wrote: “It is with deep regret that we will not be able to bring this long-awaited project to fruition. Whilst we acknowledge that this may feel like a victory for some local residents and riverside stakeholders, we are sure you can appreciate it is a sad day for the city and indeed Smart Group, as this carbon-neutral, cutting-edge vessel will no longer be redefining events on the River Thames. It is quite simply a missed opportunity for the city.”

Oceandiva arrived in London in May last year

The super yacht, which was set to be moored at the Royal Docks, had wanted to make stop-offs at six piers, including North Greenwich. Oceandiva was originally due to be operational by the end of 2022, but only arrived in London in May last year.

Smart Group withdrew a licensing application to serve booze into the early hours on Oceandiva after receiving nearly 1,000 objections from residents and businesses.

In June last year, the vessel crashed while carrying out test manoeuvres, striking the anchor of a barge near Erith.

Rachel Bentley, a Liberal Democrat councillor in Southwark, said the decision to scrap the super boat was a “huge victory for Thames-side residents and businesses”.

The North Bermondsey councillor said: “A vessel the size of a football pitch is completely unsuitable for a narrow urban river. Residents of Shad Thames were rightly concerned about rowdy party-goers disembarking into their historic neighbourhoods all day and night.”