The redevelopment of The Shoreditch Estate in London E1 has moved a step closer after British Land entered into an agreement with The City of London Corporation.

The estate covers three sites which have the potential for around 320,000 sq ft of office, retail and residential accommodation in a mix of new, retained and refurbished buildings.

Tim Roberts, Head of Offices at British Land, said: "We are pleased to have entered into this agreement with The City of London Corporation. The Shoreditch Estate is a growing area of London and plays well to our planning and development skills. With much of our existing development programme completing over the next year, this site further adds to our pipeline. We remain positive about the outlook for development in London and expect this investment to generate good returns for our shareholders."

The City of London chose British Land as preferred development partner to develop a significant part of Shoreditch into offices in May 2013. BL has now entered into an option agreement with The City of London Corporation and will draw down a development agreement subject to securing revised planning consent on the sites. On practical completion British Land will acquire a long leasehold interest in the sites.

Michael Cassidy, Chairman of the City of London Corporation's Property Investment Board, said: "The City of London Corporation is delighted to be involved in this redevelopment with British Land. It will enable the Shoreditch Estate site to be regenerated over the coming years and play a key role as this exciting area of London continues to change."