Developers Hammerson and Westfield were both vying to take on the project and had produced rival schemes. Now they have formed a joint venture to redevelop the retail centre of Croydon, combining the Whitgift Centre with the Centrale shopping centre.
Westfield will lead on construction and Hammerson on asset management.
The two companies hope to move quickly to combine the best of both plans (Westfield's is picture above; Hammerson's below) and then get planning consent before the end of the year. Westfield wants to start construction on site in 2015.
The mixed use scheme of around 200,000 square metres will include retail, leisure and residential elements, with the potential for hotels and offices.
Westfield has acquired a 50% interest in the £115 million Centrale shopping centre from Hammerson. The joint venture will also purchase a 25% interest in the Whitgift Centre, following completion of Hammerson's conditional acquisition agreement with Royal London.
Westfiled chairman Frank Lowy said: "The £1bn redevelopment joint venture with Hammerson will provide certainty for the residents, local businesses and retailers of Croydon and the region. The delivery of a major retail regeneration scheme will re-establish Croydon as south London's premier shopping district and will be a catalyst to further investment and development in the Croydon borough."
Mayor of London Boris Johnson welcomed the news: "Croydon has huge potential to return to its former glory as one of London's most vibrant town centres, and a major driver of its economy. The redevelopment of the Whitgift Centre at its heart is crucial to this vision," he said.
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