Deal to go ahead despite political change in the borough

Southwark council has approved a deal with Lend Lease over the £1.5bn regeneration of the Elephant & Castle estate and surrounding area.

The council said the regeneration agreement, which was originally supposed to be signed before the credit crunch hit in 2007, will pave the way for the historic transformation of the area.

The council said, once it was fully ratified over the next week, the deal would allow work to start on demolition, and further planning and then building work, including the  tearing down of the 1970s Heygate Estate behind the infamous Elephant and Castle roundabout and shopping centre.

The council signed heads of terms with the developer in xxxxx, but concerns had been expressed that the new political make-up of the council since the May elections could mean further delay.

Cllr Peter John, Leader of Southwark Council, said: “I am delighted that we have come to an agreement with Lend Lease that will transform the Elephant and Castle over the next fifteen years to create a new and exciting destination for London. This agreement will mean the centre of this great world city will be pulled further south in to Southwark, with the economic and social benefits that this will bring.

Dan Labbad, chief executive of Lend Lease (EMEA), said: “The opportunity to transform the area over the next fifteen years to provide a new focal point for London is a responsibility we take extremely seriously. We look forward to working in partnership with Southwark Council to transform the vision for Elephant and Castle to reality.”