Mixed used scheme in Chelsea will involve redevelopment of power station by Taylor Woodrow and Hutchison Whampoa.

Circadian, a joint venture between Taylor Woodrow and Hutchison Whampoa, has won planning permission for its £500m scheme to redevelop Lots Road Power Station in Chelsea.

The mixed-use scheme will involve the redevelopment of the power station and include ten new buildings, including two towers of 25 and 37 floors, with a total of 424 private homes and 378 affordable homes.

It will also house a nursery, a residents' gym, community space, underground car parking, 3,900m2 of office and workshop space and 1,690m2 of retail and restaurant space.

Six traffic-free public open spaces, covering almost half of the total site area, will also be incorporated.

Andrew Storey, project director for the development, said: "This is a landmark development for the 21st century, illustrating how good quality design and urban planning can make the best use of a limited land resource. We believe the Secretary of State has made the right strategic decision for this part of London."

John Prescott's decision comes at the end of a two-year battle for planning approval, which began when the Royal Borough of Kensington and Chelsea refused permission for the scheme in November 2003.

Circadian then launched an appeal to the ODPM in March 2004, and simultaneously requested that the Government Office for London call-in the portion of the scheme inside the London Borough of Hammersmith and Fulham (LBHF).

A public inquiry was then held in February 2005, which closed in April 2005. The scheme has also gained the support of Ken Livingstone, CABE, English Heritage and LBHF.