Housebuilder Countryside Properties has signed a joint-venture agreement with developer Quintain to build an £89m mixed-use development in Collier's Wood, south-west London.
The scheme, on a 3.8 ha site next to Merton Abbey Mills market, will include 283 apartments, a 132-bedroom hotel pre-let to Scottish & Newcastle, two restaurants and a fitness centre.

Construction has started on the scheme and occupation of the first phase of apartments is scheduled for the middle of next year, with completion of the entire development earmarked for summer 2006. The average selling price of the apartments is expected to be around £250,000.

Countryside group business director Richard Cherry said: "Quintain and Countryside will be creating a new urban quarter that will help revitalise the area."

Nick Shattock, property director at Quintain, said: "This joint venture agreement is another opportunity for Quintain to regenerate an underdeveloped part of London."