The investment has been agreed by the Mayor of London’s office and housing association L&Q, the partnership behind Barking Riverside – to deliver the masterplan for the scheme.
The money constitutes a Section 106 agreement reached with Barking & Dagenham Council and Transport for London.
The funding is for a new TfL Overground station, land for seven schools, a combined health care and leisure facility, and 65,000m2 of commercial, retail and leisure space, including a 2km riverside walkway, an ecology centre and new country park space
At Barking Riverside there are plans for 10,800 new homes to create a new town the size of Windsor on the banks of the River Thames in east London. Until the 1990s, the area was home to three power stations and a large landfill site.
Darren Rodwell, leader of Barking & Dagenham Council, said: “This is a hugely significant step not only for Barking Riverside but the whole borough. It's part of our drive to make this part of the Thames a magnet for aspirational Londoners who want the wonders of waterside living without having to pay sky high rates. Why live further upstream in Chelsea or St Katherine's Dock when you can move to Barcelona on Thames.”
Project director Matthew Carpen said: “This is another significant landmark for Barking Riverside, and signals 'lift-off' for all future activity on site. It commits us to over £0.5bn of infrastructure investment over a 15-year build programme.”