Two leading firms in London have joined forces to drive forward an £8 billion development at Thamesmead Waterfront. Property group Peabody and construction firm Lendlease have formed a 50:50 joint venture partnership to work on the scheme.

The companies will deliver a minimum of 11,500 homes and make a significant contribution to the continuing economic regeneration of east London and the Thames Estuary. They will work with the community to revitalise the existing Thamesmead town centre, creating new cultural, community and commercial space, along with many new homes.

The site, which currently includes 2.5km of river frontage as well as green space and two lakes, will see its full ambition unlocked by the two firms with a new cross-river extension of the Docklands Light Railway to Thamesmead.

Peabody Chief Executive Brendan Sarsfield said: “Thamesmead Waterfront represents an historic opportunity to transform an isolated and underutilised riverside location in London. A new DLR crossing from east London would allow this long-term partnership to create a new waterfront district with thousands of new affordable homes and a new leisure, cultural and commercial offer for the town, for London, and for the wider Thames Estuary. This would unlock huge benefits for existing and new communities, boosting the economy and providing huge opportunities for London and the UK.

“The Waterfront, alongside Peabody’s regeneration of the wider area, can help Thameshead become a sustainable new town – offering all of the benefits of urban living with unparalleled access to green open spaces by the Thames.”

Neil Martin, CEO at Lendlease, Europe, added: “The breadth of opportunity and economic potential that this scheme offers Thamesmead and London, is enormous. Thousands of new homes and jobs can be created, but key to its successful delivery is improving connections for existing and current residents and businesses. Doing so would open up this area of London to new audiences and improve the opportunities for those already living there.

“Improving transport links is a vital part of the long-term regeneration of the area, as it will bring those new homes within reach of the heart of London and help us deliver one of the most exciting new places to live in the capital.”