The City of London have granted Henderson Global investors' Smithfield Quarter mixed-use scheme in Farringdon planning permission.

The £160m scheme will preserve most of the perimeter buildings, inserting new steel and glass office structures in the centre. The ground floors of the market, red house and old engine house will be converted into restaurants and shops, and 230,000 sq ft of new commercial space is proposed.

Geoff Harris, Director of Property Development at Henderson, said: "Henderson has spent more than two and a half years working and consulting with English Heritage, City of London planners and local residents and stakeholders to design a scheme that meets the needs of a growing City, whilst at the same time appreciating the heritage that has shaped it. It's a high quality scheme which achieves the right balance of adding enough density in a way that is sympathetic to retaining as much of the Victorian fabric as is possible.

"The mixed-use and conservation-led scheme will bring a mix of retail, office and enhanced public amenity spaces and much needed new investment to West Smithfield and the Farringdon area. The scheme will provide a valuable retail and restaurant offer to local residents and workers."

Presuming the scheme gets agreement from the Greater London Authority and central government, the developer could commence construction as early as 2015.