Willmott Dixon’s development arm Regen has entered into a land arrangement with Westminster Council to build 120 homes and a leisure facility.
The centre, worth £17 million, is to be provided at no cost to the taxpayer, funded instead by sale receipts from 120 new homes developed by Regen.
Councils are seeking innovative new funding methods from private development partners in order to unlock value and release funding for new community facilities.
Regen’s deal will see the Jubilee and Moberly Sports and Leisure centres demolished, with a new centre to be built at the Moberly site.
It will include a 25 m swimming pool, an eight-court sports hall, a health and fitness facility, exercise studios, a health spa and boxing and gymnastics halls.
Regen will also build 80 homes on Kilburn Lane and 40 more on Caird Street in a development worth a total of £60m.
The company was recently given the green light to partner with Poplar Harca as joint developer for 1,100 homes in east London.
If planning permission is granted in Westminster, construction can begin in 2013.
Willmott Dixon will be procured as contractor for the leisure centre under the Scape framework.
Regen chief executive officer Andrew Telfer called the scheme “exciting and ground-breaking”.
“With both current leisure centres in need of modernisation, this solution provides a bigger, state-of-the-art property for the local community offering high-quality sporting facilities for many generations to come, along with much-needed quality new homes,” he said.
Westminster councillor Steve Summers said: “Few councils are in the position of being able to build new sports facilities in the current financial climate.
“We understand the concerns of the community regarding the loss of facilities at Jubilee and hope that the proposed new community sports hall – which has been prompted by feedback from local people – will go a long way to answer those concerns.
“We will continue to work with local people to ensure their views are taken on board as the proposals develop towards the planning stages.”