Transport for London has announced plans to build 300 new homes, plus new retail and restaurant units on a one-acre site around and above Southwark Tube station.
The Mayor’s transport agency has partnered with FTSE-listed Development Securities to transform the site on Blackfriars Road.
The development area includes three sites: Algarve House, a derelict office building which Development Securities has an £8 million option agreement for, land owned by TfL including the space above the station; and land around the station owned by the London Borough of Southwark.
TfL claims the development “will complement other developments in the area” and improve the environment around the adjacement Isabella Street.
The scheme is the latest step in TfL’s efforts to raise 3.4bn in non-fare revenue over the next decade and reduce the burden currently shouldered by fare-payers. Earlier this year it announced plans to develop 50 sites across its property portfolio.
Julian Barwick, Director, Development Securities said: “Our site is located within an exciting area of Southwark with huge potential to deliver a development that creates new employment and housing opportunities as well as considerable new public realm and leisure opportunities.
“Following our success at 10 and 12 Hammersmith Grove, we are delighted to have joined forces again with TfL to create a partnership that has the expertise and ability to deliver a significant regeneration development for the local area.”
TfL’s Graeme Craig added: “Our joint venture with Development Securities is another example of the work we are doing to maximise our assets whilst generating vital revenue that we can invest in the transport network.
“The development above and around Southwark Tube station will see the creation of homes, jobs and new community facilities on a site that has been left undeveloped for far too long.
“We want to form similar joint venture partnerships with leading developers to help us bring forward some of our other sites to maximise their long term value. We have now launched a tender process to identify partners.”
TfL says there will be an “extensive consultation” with local businesses and residents to inform the creation of a masterplan for the site. The planning application will be submitted later this year.
London Assembly member, Val Shawcross AM, who represents the Lambeth and Southwark constituency, said: “For too long this prime space has sat empty, with London desperately needing to boost its housing stock, today’s announcement is really welcome. Whilst there is still a way to go until this project becomes a reality, including I hope significant consultation with local people, today marks a very positive first step.
“With a chronic shortage of affordable housing in our capital and the Mayor’s consistent failure to bridge the gap, I would call upon TfL to ensure that any final plans for this site include as many affordable housing as possible.”