Work will transform an old car park and industrial area in the town centre into a new mixed-use scheme.

The £65m project will include a 75,000 sq ft Morrisons foodstore, a further 30,000 sq ft of non-food retail units plus over 230 one to four bed apartments above the store.

The redevleopment site is on South Grove, to the south west of Walthamstow High Street and adjacent to the St James Street railway station.

Work will also include a new community square and significant contributions to local transport infrastructure.

Richard Haynes, development executive at Morrisons said: “This is another rung on the ladder for Morrisons’ expansion in London and the South East, a key area for the 800,000 sq ft of additional sales we plan to open across the country in 2012.

“We are thrilled that Waltham Forest has seen that Morrisons and Willmott Dixon bring a winning formula for the site that will provide tangible benefits and opportunities to Walthamstow.

“Both our companies are very experienced in delivering quality retail and residential schemes and have a strong commitment to jobs, community and sustainability.”

Andrew Telfer, chief executive officer at Willmott Dixon Regen, said: “As the UK’s second largest privately owned contractor and developer, we are joining forces with one of the UK’s biggest names in retail to create new homes and retail space that will attract more people to work and live in Walthamstow.

“This is a key part of our strategy to use our construction and development expertise to partner with a company like Morrisons with complementary skills that can make large mixed-use developments like this a reality.”