The deal with the Covent Garden Market Authority will lead to the £2bn transformation of the 57 acre site situated next to Vauxhall Cross, Nine Elms.

The multi-phase scheme will include development of 550,000 sq ft of modern facilities to house the 200 businesses that make up the UK’s largest fruit, vegetable and flower market.

The new market 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, providing up to 2,800 new homes and 115,000 sq ft of commercial accommodation.

Nine Elms is one of London’s key development areas and current projects include the development of the new United States Embassy and the redevelopment of Battersea Power Station.

Bill Oliver, Chief Executive of St. Modwen, said: “The redevelopment of New Covent Garden Market is an incredibly exciting project and one that complements our extensive experience in regenerating complex, brownfield sites.

“Vinci and St. Modwen are very pleased to have now signed contracts with the CGMA and we look forward to engaging with tenants, neighbours and other stakeholders to progress the delivery of this development.”

David Bowler, Director, Vinci PLC, said: “Vinci PLC is delighted to be working alongside St. Modwen and CGMA, not only to provide a modern market for the food and flower trades in London, but also to deliver a world class development that will significantly contribute to the cultural and economic regeneration of Nine Elms.”