The Mayor of London, Boris Johnson, has confirmed a £1.5bn plan to transform Silvertown Quays in London's Royal Docks into a new innovation quarter and destination for global brands.

The deal with The Silvertown Partnership, a consortium of Chelsfield Properties and First Base will see the site, currently owned by the Greater London Authority, developed into a cluster of purpose built centres for product innovation.

Johnson said: "The regeneration of London's historic Royal Docks continues apace. The confirmation of this deal to return Silvertown Quays to its former glory will bring thousands of new homes and jobs back to east London.

"It will also make the Docklands a must go visitor destination helping to unlock the economic potential of surrounding areas."

The new quarter will also contain space for incubator and technology businesses as well as more than 1500 new homes, restaurants, cafes, galleries and leisure facilities both on and off the water.

Situated in the heart of the Royal Docks Enterprise Zone, the 50 acre site will also benefit from a new bridge connecting it to ExCel.

The whole development is expected to create £6.5bn of economic benefit for the UK economy over the next 25 years. An outline planning application is being prepared for submission to the London Borough of Newham in the next 12 months.

Elliot Lipton of The Silvertown Partnership, said: "We will create a new waterside destination for London where people can interact with the range of brands, alongside restaurants, galleries, shops and homes all set in a beautifully landscaped and attractive environment which will make the most of the dock's features.

"As a centre for innovation, The Silvertown will also allow global brands to showcase their products and be a thriving place for people to live, work and visit."

Work on the first phase of the site is expected to begin in 2014/15 with the first businesses moving in 2017.