London-based real estate firm Workspace Group has received planning permission for a mixed-use development at Raynes Park in the south-west London Borough of Merton.
Planning consent has been granted for redevelopment of the Rainbow Industrial Estate, which will lead to replacement of the existing low-rise industrial units and open yard. In March the site was valued at £10.5m.
Under the new plan, the development will hold 224 residential units, including a mix of townhouses, private apartments and 15% affordable housing, along with 37,000ft2 of new commercial and light-industrial space.
The residential units will be developed as six blocks of flats rising to between five to seven-storeys, and a terrace of nine houses.
The redevelopment is expected to 'increase employment levels on the site, while providing much needed housing for the London Borough of Merton,' Workspace Group said.
Workspace chief executive Jamie Hopkins said: "We are delighted to have received planning permission for this redevelopment in Raynes Park, which is the result of significant collaboration between Workspace and Merton Council's Planning team over a number of years.
"The redevelopment will considerably increase the capital value of the site, reinforcing our ability to drive shareholder returns through active asset management."
Workspace Group has owned and managed the Rainbow Industrial Estate for more than two decades.
The firm was considering 'potential options for an employment-led mixed-use proposal' at the site, in coordination with the local community. It presented the Merton Council with their ideas, followed by a consultation that was organised in 2012 to ponder future redevelopment at the site.