A joint venture between a Meyer Bergman-advised investment fund and Warrior Group aims to give the once grand Grade II-listed department store in Bayswater a new lease of life.

The Foster + Partners designed £1bn mixed-use scheme will see 500,000-plus sq ft of homes and shops built behind the existing 1911 facade.

Under the revised plans two controversial residential towers will be dropped a floor and the number of one and two bedroom flats increased from 44 to 78 while larger four bedroom homes will be reduced from 37 to seven.

Exterior of the existing building will be retained 

A new public courtyard will be at the heart of the new scheme

A hotel is planned to boost footfall and bring the leisure and retail scheme to life

The scheme will open onto Queensway, which is also planned to undergo a £50m revamp.

Under the section 106 agreement the developer has agreed to fund £6m of public realm improvements and £6m for affordable housing.

The vast mixed-use scheme, south the Thames in Rotherhithe, ranks as the London developer’s most ambitious scheme over the next 10 years.

This morning the firm revealed plans were progressing for the 46 acre site as it unveiled a 7% rise in underlying profit for the year to £390m.

British Land is working closely with the London Borough of Southwark, the Greater London Authority, Transport for London on the scheme.

Plans will include 2m sq ft of workspace and 1m sq ft of retail and leisure space alongside educational and cultural uses and up to 3,500 new homes.

These will include a mix of affordable and market priced housing as well as a more targeted provision, including student accommodation.

Chris Grigg, chief executive, said: “Our active programme of engagement with the local community and other stakeholders includes our fourth public consultation which started earlier this month and we are targeting submission of a planning application around the end of the financial year.

“We will evaluate phasing of the project and potential funding structures as we move closer to securing planning.”