Mayor of London backs £1bn Croydon regeneration plans

The announcement follows a resolution to grant planning permission to the scheme by Croydon Council's strategic planning committee on Monday.

Under the plans, the joint venture developers will transform the Whitgift Centre into a 1.5 million square feet retail and leisure destination and build up to 600 new homes. The scheme is expected to create more than 5,000 permanent jobs.

The site forms part of the Croydon Opportunity Area, which has a vision for the creation of up to 10,000 new homes and 7,500 jobs as well as local transport infrastructure improvements, including at East Croydon Station.

Westfield and Hammerson signed a joint venture agreement for the project in January. Prior to the agreement, both developers had produced separate plans for the redevelopment of the Whitgift Centre and had been involved in a dispute over who had the right to go ahead with its plans. Johnson said in a statement that he had been "instrumental" in bringing the agreement to fruition.

“This development will usher in a new era of prosperity for Croydon and help return it to its former glory," said Johnson. "Hammerson has an excellent track record and the recent Westfield developments in London created thousands of jobs and attracted millions of visitors, giving others the confidence to invest."

“I am in no doubt that this new development will have a similar positive impact in Croydon and breathe new life and vitality into the town. There is no doubt that Croydon can once again become one of London's most vibrant town centres and a major driver of our economy and this development will bring that aspiration one step closer to reality,” the Mayor said.

Croydon Council leader Mike Fisher said that the Mayor's decision "means a lot in taking these plans forward". He said that the scheme will "reawaken the town centre and act as a spark in driving new jobs and new investment into the borough".

"The top level support for this scheme reflects the strategic importance of regenerating Croydon and the real benefits that will be created for residents throughout south London,” Fisher added.

The application will now be submitted to the Secretary of State. Subject to his approval, construction is expected to start on site in 2015.