Regeneration specialist St Modwen Properties said it signed a contract to redevelop the UK's largest fruit, vegetable and flower market.

The deal with the Covent Garden Market Authority (CGMA) will it see it redevelop the New Covent Garden Market site in Central London, together with its joint venture partner VINCI.

The project has a total development value of around £2bn and will include the overhaul of the entire 57 acre site situated next to Vauxhall Cross, Nine Elms, St Modwen said.

It will include the development of 550,000 sq ft of modern facilities to house the 200 businesses that make up the site.

These new facilities will be funded through the release of 20 acres of surplus land which will then be developed to create a new high quality residential led mixed-use regeneration scheme.

This will provide up to 2,800 new homes and 115,000 sq ft of commercial accommodation.

"Our vision for a modern new market is now significantly closer to being realised and we look forward to working with VSM and the tenant community in taking the plans forward in what will be a major and important part of the new Vauxhall Nine Elms development area," said Brenda Dean, Chairman of CGMA.

Nine Elms is one of London's key development areas, with current projects in the area including the building of a new United States Embassy, as well as the redevelopment of Battersea Power Station.

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