Lend Lease and Southwark Council have delayed the signing of a development agreement for the £1.5bn regeneration of Elephant & Castle due to protracted negotiations with Transport for London.
The two parties had intended to sign a development agreement at the end of 2007, after Lend Lease was selected as development partner in August that year.
But negotiations with TfL over the remodelling of the Northern Line underground route have meant the signing is delayed until May 2009.
‘I am totally committed to the regeneration of Elephant & Castle and I have been personally reassured that despite the current economic situation, Lend Lease wish to conclude this deal as quickly as practical,’ said Cllr Paul Noblet, Southwark’s executive member for regeneration.
‘However, as many people already know, we are involved in protracted and complex negotiations with Transport for London over changes to the local transport network. It would be irresponsible for either side to agree a deal before the negotiations with TfL are concluded.’
Lend Lease will develop 4m sq ft at the 170-acre site in Elephant & Castle Town Centre, including 6,000 new homes and a new retail complex. The intended completion date was 2014.