The owners of the Elephant & Castle Shopping Centre have confirmed they are working on plans to redevelop and extend the building to include more shops and new homes.
As we reported on Thursday, it is increasingly clear that the centre will not be demolished as envisaged under Southwark Council's Elephant & Castle masterplan which called for the extension of Walworth Road through the shopping centre site to meet London Road.
The centre is owned by Key Property Investments, a 50:50 joint venture between St Modwen and Salhia, which bought the complex for £29 million nine years ago.
St Modwen now says that it is working with Southwark Council and its Elephant & Castle regeneration partner Lend Lease to draw up an agreement for the future of the site.
St Modwen claims that "modern, bright architecture" will will herald an increased range and number of shops, improved leisure facilities, enhanced public realm and new homes.
"All of the key parties have much work to do to bring these proposals to fruition but nonetheless these discussions are a major step forward for the project," says Bill Oliver, chief executive of St Modwen.
"We hope they will see KPI realise a revitalised mixed-use destination at the heart of the Elephant & Castle.
"We are naturally very enthusiastic about the opportunities this will provide not only for local people and the borough of Southwark but also for KPI which will now have the opportunity to implement its long held aspirations to develop this key asset.
"We look forward to finalising our discussions with both Southwark Council and Lend Lease."
Cllr Fiona Colley, Southwark's cabinet member for regeneration, added: "Southwark Council's £1.5 billion transformation of Elephant & Castle is already taking shape and the shopping centre will be pivotal in realising the area as a modern, central London destination."
Dan Labbad of Lend Lease said: "Lend Lease is pleased with the positive discussions we have been having with St Modwen and London Borough of Southwark with respect to the Shopping Centre.
"This brings us another step closer to realising our vision for the transformation of Elephant & Castle, providing a modern sustainable mixed-use district which will enhance the lives of residents, visitors and the local community."
Council leader Peter John, who has previously called for the demolition of the shopping centre, says that residents have his "absolute commitment" to "major changes" at the centre.
Opportunities for high-rise development on the shopping centre site are restricted by the measures introduced by Mayor of London Boris Johnson to preserve the view of Westminster from the Serpentine Bridge in Hyde Park.