Peabody has selected Lendlease for the £8bn Thamesmead Waterfront development in south-east London.

Lendlease will work with Peabody to masterplan and deliver the scheme over the next 30 years.

The 250-acre site is currently undeveloped and underpopulated but it has 2.5km of undeveloped river frontage, with green space, grassed and wooded areas, canals, two major lakes and an existing town centre.

The Peabody and Lendlease plans include a new waterfront district of 11,500 new homes around a proposed new DLR station.

The project will also rejuvenate the existing town centre, creating new cultural, community and commercial spaces for Thamesmead and for London.

Brendan Sarsfield, chief executive at Peabody, said: “Our shared vision is to create thousands of new homes by the Thames and drive the local economy through new jobs and commercial spaces.”

Dan Labbad, CEO at Lendlease, Europe, said: “As one of London’s largest areas of opportunity to develop new housing and to support business and employment growth, Thamesmead can offer a fresh approach to living in London.”

This is the latest phase of Thamesmead’s regeneration which could deliver 20,000 new homes for London. It is being delivered by Peabody, with development partners, alongside the London Borough of Bexley, Royal Borough of Greenwich, Greater London Authority and Transport for London.

The town spans the same distance as central London making the regeneration one of the largest projects in Europe.