Plans for the scheme include 450,000 square feet of retail and leisure space and up to 1,000 residential units. The existing building structure will be retained but will be extended both outwards and upwards.
"We have agreed terms with London Borough of Southwark and are expecting shortly to conclude our legal agreement which will advance the regeneration of the shopping centre," St. Modwen said in a trading update.
The developer is also close to concluding a Co-operation Agreement with the Council and Lend Lease, which is the Council's regeneration partner for the nearby Heygate Estate. The agreement is to "ensure close alignment between the three parties to drive forward the wider regeneration of the area," St. Modwen said.
The developer has been in negotiations with Transport for London about making contributions to improvements to the northern roundabout and the underground station at Elephant and Castle.
St. Modwen signed a development agreement with the Council for the scheme in November last year. The developer expects to consult with the public on its plans next year, followed by submission of a planning application. Construction on the development is anticipated to start in 2015.
