There is potential for around 320,000 sq ft of office, retail and residential accommodation to be developed in a mix of new, retained and refurbished buildings.
The estate comprises three sites covering two acres, immediately north of Spitalfields and the core City of London market. It fronts onto Shoreditch High Street and Norton Folgate.
In recent years this area of London has become fashionable for trendy, creative types and with the new Liverpool Street Crossrail station set to open in 2018, demand is expected to grow further.
British Land has entered into an option agreement with The City of London Corporation and will draw down a development agreement subject to securing revised planning consent on the sites. On practical completion British Land will acquire a long leasehold interest in the sites.
The developer has commissioned architects AHMM to come up with solutions appropriate for the Elder Street Conservation Area, in which the sites are.
British Land head of offices Tim Roberts said: "The Shoreditch Estate is a growing area of London and plays well to our planning and development skills. With much of our existing development programme completing over the next year, this site further adds to our pipeline. We remain positive about the outlook for development in London and expect this investment to generate good returns for our shareholders."