Muse Developments is set to ink a £50m deal with Lambeth council next month for the redevelopment of its town hall in Brixton.
Muse beat United House and Kajima to the deal and is understood to be poised to sign a development agreement at the start of February.
The company will look for contractors to build the project after signing the agreement, a source close to the deal told Construction News.
The scheme, with a current value of up to £50m, will see the redevelopment of the town hall, including space for start-up businesses; a new energy-efficient council office; 275 new homes, of which 40 per cent hope to be affordable; and “hundreds of construction jobs”, including 45 apprenticeships.
In November, Lambeth cabinet member for finance Paul McGlone said: “This is a good deal for Lambeth – it will save at least £4.5m a year, deliver new affordable homes as well as jobs for local people.”
He added: “It’s a smart deal too because by selling off our old and expensive office buildings we can make the development pay for itself.
“In Clapham we provided a new library, a GP health centre, leisure centre and affordable housing at no cost to the taxpayer by taking a similar approach and working successfully with a development partner.”