Frogmore has agreed to fund Arrowcroft’s Croydon Gateway scheme

Frogmore will provide all the capital to take the scheme forward, which will include the full cost of a large arena. Arrowcroft will continue to manage the development, which has a value of more than £600m.

The funding will come from its Real Estate Partners fund, which raised around £1bn last year.

Arrowcroft’s scheme has already been awarded planning consent by the council, with which it has a development agreement, but this is being challenged by majority landowners Stanhope and Schroders, which plan their own mixed-use scheme on the site.

The pair proposes a 1.6m sq ft (148,643 sq m) scheme, which has been granted planning approval by the secretary of state.

Arrowcroft has challenged the secretary of state’s decision to grant permission to Stanhope and Schroders’ scheme in the High Court. The council also launched proceedings last month to compulsorily purchase the land, which are again being contested by Stanhope and Schroders.

Arrowcroft’s scheme features a 12,500-seat arena, which the council has specified that it wants within the scheme, as well as retail, 800 homes and 500,000 sq ft (46,451 sq m) of offices.

Nicholas Hai, chief executive of Arrowcroft, said: ‘The signing of this contract is the culmination of years of hard work and evidences the viability of the total scheme.’

Stuart Jenkin, Frogmore's managing director of joint ventures, said: ‘Arrowcroft has devised a very strong and well-founded mixed-use project which will generate good investment returns for our investors.’

CB Richard Ellis advised Arrowcroft.