St. Modwen Properties and its joint venture (JV) partner Vinci have signed a contract with the Covent Garden Market Authority (CGMA) to develop the £2bn New Covent Garden Market site in Nine Elms, London, UK.
St Modwen and Vinci, operating together as VSM Estates, were named as preferred bidders for the project in March 2012.
As per the deal, the JV will construct 2,800 new houses around the proposed US embassy in south London, which involves a complete redevelopment of the 57-acre site.
Commenting on the signing of contracts, St. Modwen chief executive Bill Oliver said, "The redevelopment of New Covent Garden Market is an incredibly exciting project and one that complements our extensive experience in regenerating complex, brownfield sites".
The project will see the development of a 500,000ft² fruit, vegetable and flower market to accommodate 200 business units.
Approximately 20 acres of land will be used for 2,800 new homes and will also feature 115,000ft² of commercial accommodation.
Five new buildings will be delivered for wholesale and catering distributors, and one building for use as a flower market.
Plans also include a new building, dubbed The Garden Heart, for food and flowers in London, which will offer exhibition space, education facilities, cafes and a public market.
As per the plans, four development plots will be freed up to accommodate new homes and shops.
Construction will initially focus on the building of the new market ahead of a multi-phased move of the traders into the new purpose-built facility between mid-2014 and 2018.
CGMA submitted an outline planning application covering the entire site to Wandsworth Council in late 2011.