The Streatham Hub project is to go ahead, it has been announced.

Tesco yesterday formerly agreed with Lambeth Council to provide the same leisure, housing and supermarket development as originally promised, and hopes to deliver it by December 2012.

But a change to the delivery of the project means the entire site will be knocked down at the same time, meaning the Streatham Ice Arena will be levelled before a new rink is built.

The supermarket giant said it has not broken a promise of "continuity of ice provision" in the area, as a "high quality" temporary ice rink will be built in its place.

A Tesco spokesman said plans for the temporary ice rink are expected to be unveiled in the near future and could open as early as next year.

It is planned that the temporary rink, that will be big enough for ice hockey matches and figures skating, will be on Streatham Common opposite the site.

No temporary pool will be provided, but a temporary gym could also be built on the common, the Streatham Guardian understands.

The new building programme will mean the whole project - which includes some 250 new homes, a major supermarket, leisure centre, 438 space car park, swimming pool and ice rink by Streatham station -can be built two years quicker.

The proposals still need to be rubber-stamped by Lambeth Council's cabinet at its meeting on Monday, March 29.

A start date for construction has yet to be confirmed.

Eoin Dardis, Corporate Affairs Manager at Tesco, said: “This is great news for Streatham and will deliver what the area has been crying out for."

"We will, in the coming weeks, liaise closely with the Council to ensure the local community is fully aware of the detail of the revised scheme and the benefits that will now be delivered in Lambeth.”

He added: “The Streatham Hub is a complex multi-purpose project including retail and leisure uses.Spenhill, our specialist mixed-use development team, have been working extremely hard with Lambeth Council to come up with a revised scheme that is viable and delivers benefits for the local community.”

“We will continue to work with the council to deliver the temporary ice rink while the site is developed, which we appreciate is of great importance to local people.”

Councillor Lib Peck, who said:“I am very pleased that Tesco have given their backing to the scheme and, in particular, they have listened to the need for a quality ice rink while development takes place.

"Streatham needs investment and the work that we have done together with Tesco means that I am optimistic of a positive result at the Cabinet meeting."

The Streatham hub project - which was first given planning permission in 2003, has been racked by delays.

The latest setback came when the project fell victim to a collapse in the housing market caused by the recession. Profits from the residential development are financing the project.

The need for an urgent delivery of the scheme intensified when the delapidated Streatham Leisure Centre was forced to close in November for health and safety reasons.

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