Lend Lease and Grosvenor have confirmed their formal agreement to jointly develop the £700m Tithebarn regeneration scheme in Preston.
The pair have created a 50:50 partnership to develop, project manage and market the scheme, anchored by John Lewis. Preston City Council has also formally sanctioned the partnership.
The agreement follows a competitive selection process initiated by Grosvenor, in which Lend Lease was shortlisted in January 2007.
The long-awaited Tithebarn regeneration scheme covers 28 acres and will consist of 1.1m sq ft of retail, catering, leisure and commercial with 400,000 sq ft of residential accommodation.
Lend Lease and Grosvenor expect to submit a planning application late in 2008, with work anticipated to start on site in 2010 and completion provisionally scheduled for 2013.
Nigel Hugill, chairman of Lend Lease Europe, said: "The Tithebarn investment is consistent with our strategy to secure large mixed-use developments in major towns offering significant growth potential. Tithebarn lies at the heart of an affluent and attractive town with a strong demographic profile, but one which has been historically underserved in retail and residential terms."
Grosvenor is currently nearing completion of the main retail element of its £950m Liverpool One project. Cost overruns of £140m in Liverpool forced it reconsider its strategy for progressing Preston and to sell a half share early in the process.