The Vinci and St Modwen joint venture has been named preferred bidder for the £2 billion regeneration of New Covent Garden Market.
The Covent Garden Market Authority selected VSM Estates as its development partner for the plan, which involves a complete rationalisation of the 57 acre site over a five year period.
The Vinci/St Modwen jv beat Bouygues to the scheme. Barratt Developments/Kier Group was also shortlisted, but dropped out last summer.
The massive scheme encompasses development of a new 500,000 sq ft market to house the current 200 businesses that make up the UK’s largest fruit, vegetable and flower market.
The scheme will be funded by the release and redevelopment of 20 acres of surplus land into a residential led mixed-use regeneration scheme, including 2,800 new homes adjacent to the new US Embassy.
Six were originally in the running - Barratt developments & Kier, Berkeley Group, Bouygues UK, St Mowden, Stanhope and The Garden Development Partnership.
John Stanion, Vinci chairman and chief executive, said:” Our focus on developing a solution that enables the market to continue to trade efficiently throughout the construction programme has been critical in our success. This important contract builds upon our strong existing partnership with St. Modwen.”
The contract is subject to the grant of a full planning consent for VSM Estates’ scheme with construction expected to start by mid 2013.
Construction will initially focus on the building of the new market ahead of a multi-phased move of the traders into the new purpose-built facility between mid 2014 and 2018.
Bill Oliver, chief executive of St Modwen, said: “We believe our success is down to our extensive experience in delivering highly complex regeneration schemes such as this, in partnership with a global leading construction and concessions business in Vinci.”