Workspace hammers out a deal with Anvil

London's leading landlord for entrepreneurs has struck a development deal that will bring a new business park and 209 flats to spruce up a rundown area of Wandsworth.

Workspace has granted a 999-year lease to developer Mount Anvil, which will build the flats and the new 80,000-square-foot business centre by 2014.

No money is changing hands as part of the deal but Workspace will take a 50% cut of the profits on the flats above £50 million.

Analysts said the new business centre would be worth about £17.5 million, well above the £11 million book value of the currently empty two-acre site. Workspace has two similar schemes in the pipeline for business centres and flats at Bow near the Olympic Park and at Tower Bridge, Southwark.

Chief executive Harry Platt said: "All three of these projects are in key locations and are central to the growth plans of the respective local authorities."

Wandsworth is in line for another boost after builder Galliford Try landed a £38.5 million deal to build 121 luxury flats and commercial space at the Riverside Quarter housing project in South London for international developer Frasers Property.

The flats will be finished in 2013.