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Barratt Developments has exchanged contracts with the Greater London Authority to redevelop Cane Hill, an 83-hectare former hospital site in Croydon.

The housebuilder is proposing to build 650 homes 鈥� including 163 affordable homes 鈥� and 70,000ft² of commercial space including business, leisure and retail.

The scheme is one of the largest housing-led development sites within the M25 and has a gross development value of 拢250m.

Barratt will aim to submit a planning application for the scheme within the next year.

Mark Clare, chief executive of Barratt Developments, said: 鈥淲e are delighted to have secured this outstanding opportunity to develop one of the best sites in the south east of England.  This is a great example of high quality public sector land being brought to the market and largely developed on the 鈥榖uild now pay later鈥� principle. 

鈥淲e are committed to engaging with all the partners and the local community to design and deliver an outstanding place to live and work. Our selection to deliver this project underlines our capability to deliver high quality homes working in partnership with the public sector.鈥�