The mixed-use scheme is designed to revitalise the centre, which was built in the 1950s and is made up of a shopping precinct and other community facilities.
Work is now beginning on a detailed planning application for the construction of 150 new homes – a mix of flats and houses – and a new shopping parade.
The planning application is expected to be submitted in 2018 with the overall construction programme completed in 2022.
“The redeveloped homes and business spaces will breathe new life into the area and we also hope to improve its accessibility, both locally and to other parts of the town,” said Roger Trigg, Welwyn Hatfield Borough Council’s executive member for corporate property.
Lovell regional regeneration director Stephen Norton said: “Our team has a strong record of delivering large-scale, community-focused regeneration schemes and we look forward to bringing that expertise to this important project for South Hatfield.”
To win the job, Lovell has agreed to pay £50,000 to Welwyn Hatfield Borough Council as a community grant for the local community.