St James, part of the Berkeley Group, has bought a site with the potential for 4,500 homes from Marks & Spencer in White City, London.
The site was sold for a sum in the region of £100m, to be paid over three years.
It is currently an M&S storage warehouse, but will now be transformed as part of a major regeneration project, featuring extensive parklands.
The site is at the heart of a major regeneration project led by Westfield, Stanhope and Imperial College London.
Berkeley Group chairman Tony Pidgley said: “St James will use all its expertise in place-making to create a fantastic new location, with a public park, improved connections and homes for thousands of people.
“I am delighted to secure this important strategic site for West London.”
Sir Keith O’Nions, president and rector of Imperial College London, said: “With St James’ acquisition, the major landowners in the White City Opportunity Area now have an exceptional opportunity to move forward with the comprehensive regeneration of this strategic site. Our new campus there, Imperial West, will anchor world-class research and innovation in the area, creating brand new facilities for the public, and generating major job opportunities.
“We are delighted that St James and neighbouring investors will also make significant contributions to improving the local economy and community. We look forward to working with St James, Hammersmith and Fulham and the GLA to help realise the area’s outstanding potential.”
CBRE acted for M&S on the sale.
CBRE executive director Peter Burns said: “This deal allows M&S time to undertake a relocation, whilst releasing a significant piece of the jigsaw of one of London’s most exciting regeneration areas. The development sits within a larger regeneration zone, and the residential element will attract considerable interest due to its central London location and phenomenal educational, retail and leisure attractions.”
Sir Edward Lister, deputy mayor for planning, added: “This an extremely positive step forward in the regeneration of White City which is set to deliver thousands of new homes. We have ambitious plans for this area’s wider development, seeking to build on its heritage, attract further investment and create jobs. I welcome St James’s Group’s contribution to this exciting vision.”