Elephant & Castle Market will continue to operate in its current location until at least 2014 amid continuing uncertainty over the future of the shopping centre site.
St Modwen, owner of the Elephant & Castle Shopping Centre, has agreed a new five year lease with Urban Space Management to continue its operation of the Elephant and Castle Market.
"In a period where we are all uncertain about the timing of redevelopment plans at Elephant & Castle this agreement and the investment that Urban Space Management are making in the market sends out a clear signal that, for us, it is business as usual at the shopping centre for the foreseeable future," says project manager Martyn Wills.
The operator also plans to invest in new market stalls, traders' storage, additional kiosks and an eye-catching environmentally-friendly roof sign.
USM says that it will help local people wanting to start a low-risk new business despite the recession.
There have also been discussions between USM, Southwark Council, land owners and development partners to identify a new home for the market within the eventual regeneration scheme.
The council must sign an agreement with development partner Lend Lease by the beginning of July after nearly two years of delays to the regeneration programme.
"We are delighted to agree a new long-term lease with USM which matches our commitment to the Elephant & Castle Shopping Centre," says James Stockdale of St Modwen.
"Considering the current economic difficulties the centre is trading exceptionally well with over 95 per cent of the retail and office space now let.
"To maintain this level of success, St Modwen is investing in the centre with new branding, refurbishment of the malls and new internal and external signage."