Development Securities, in partnership with Cathedral Group, has bought a 2.2-acre site in Greenwich town centre for £16m, enabling the development of The MVMT, a 350,000 sq ft mixed-use regeneration scheme.

Development Securities entered into a joint venture with Cathedral Group in September 2010 and secured planning consent in 2011 to regenerate and reposition the derelict industrial site into a mixed-use development.

The land purchase from the Royal Borough of Greenwich will allow the scheme to go ahead.

The companies also announced today that that they have completed the sale of the £50m residential element of the scheme to Willmott Dixon.

Contracts for the sale have also been exchanged with McLaren at £8.3m for the land element of a 358-bed ‘student village’ with the deal due to complete in August.

The partnership will commence enabling and infrastructure works immediately to prepare the site for development.

The hotel element has been pre-leased to Travelodge and negotiations are in hand regarding its long-term institutional funding.