March 27 (Bloomberg) -- Vinci SA’s U.K. unit and St. Modwen Properties Plc were chosen to develop the 2 billion-pound ($3.2 billion) New Covent Garden Market mixed-use neighborhood in southwest London.
VSM Estates, a joint venture of St. Modwen and Vinci Plc, was selected to build a 500,000 square-foot (46,450 square-meter) market on a 57-acre site near London’s Battersea Power Station, the companies said in a statement today. The project by the Covent Garden Market Authority will be occupied by about 200 businesses.
“Our focus on developing a solution that enables the market to continue to trade efficiently throughout the construction program has been critical,” Vinci Plc Chief Executive John Stanton said in the statement.
The project will be funded by the development of 20 acres of surplus land for 2,800 homes and other uses, St. Modwen said in an e-mail. Construction will start next year once planning permission is given and businesses will move in starting in 2014.
The land is part of a 195-hectare industrial area allocated by local governments for redevelopment into 16,000 homes as well as offices. Royal Mail Group Ltd. won approval on March 6 to turn a mail-sorting office there into about 1,900 homes and a new U.S. embassy will be built there.
Vinci SA, based in the Paris suburb of Rueil-Malmaison, is Europe’s largest builder. St. Modwen of Birmingham, England, specializes in neighborhood regeneration.
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