The co-owner of the Elephant & Castle Shopping Centre has confirmed that it is seeking a joint-venture partner for its planned development of the site to include 1,000 new homes.
St Modwen jointly owns the centre with Salhia Real Estate.
"Having now agreed terms with the London Borough of Southwark, we expect to conclude shortly our legal agreement which will commence the regeneration of the shopping centre and to agree the co-operation agreement between St Modwen, LBS and Lend Lease before the end of 2012," St Modwen said in a trading update published on Monday.
"We have recently instructed Colliers International to identify a joint venture development partner to bring forward the scheme which, on completion, is expected to provide up to 350,000 sq ft of retail and leisure space and 1,000 new homes.
"We are currently working up the plans with a view to submitting a planning application in late 2013, with the intention of starting the development in late 2015."
2015 will mark the 50th anniversary of the opening of the existing shopping centre.
The latest announcement marks a reduction in the amount of retail and leisure space proposed in the new development from the 450,000 sq ft mooted by St Modwen in the summer.
The London SE1 community website understands that senior figures at Southwark Council are unhappy with St Modwen's proposals for such intense development on this crucial site for the wider Elephant & Castle regeneration project.