The owners of the Elephant & Castle Shopping Centre say that they expect to start work in 2015 on a scheme to effectively double the retail space and create 1,000 homes on top of the building.
St Modwen, which owns the centre in a joint venture with Salhia Real Estate, says that the centre is valued at £52.5 million.
Last year Southwark Council controversially signed a cooperation agreement with St Modwen to work together on redevelopment plans which would retain the structure of the existing building, effectively tearing up previous council policy which had sought the demolition of the centre and the creation of a new pedestrianised street across the site.
That in-principle agreement between St Modwen and the council is now expected to be formalised in a three-way deal including Australian developer Lend Lease, the council's regeneration partner for the Heygate Estate.
"The joint working agreement with Lend Lease and the London Borough of Southwark to ensure the delivery of a comprehensive redevelopment of the area is expected to be formally agreed before the end of 2012," said St Modwen in its half-year report published this week.
"Planning will be pursued in 2013 for 450,000 sq ft of retail and up to 1,000 apartments, with construction targeted to commence in 2015."
In 2015 the centre will have been a fixture of Elephant & Castle for half a century..
We reported six months ago on the company's ambition to develop up to 1,000 homes on the site, but this is the first time the company has highlighted the planned expansion of the retail space in the building from the current 135,000 sq ft of shops and 90,000 sq ft of leisure facilities. The current building also includes 90,000 sq ft of office space in Hannibal House.
In a presentation to investors St Modwen says that it is in negotiation with Transport for London about the developer's contribution to improvements to the northern roundabout and the underground station at Elephant & Castle.