WORK is set to begin this week on a major redevelopment project in Bexleyheath town centre.

A deal was struck between Bexley Council and Tesco on Friday (Feb 15) to pave the way to convert the former Woolwich building into council offices.

Meanwhile, the building of 26 new homes on land at the rear of the building, which Tesco has sold to Bellway Homes, is expected to begin.

When the council moves into the Woolwich building in Watling Street in Spring 2014, it will leave the current Civic Offices and allow space for Tesco to create a superstore which will bring 400 jobs.

Bexley Council say moving to one big site instead of four ageing offices will save around £1million a year.

Council leader Teresa O’Neill, said: “I am delighted that all the formalities are complete, because I believe this project is good news for Bexleyheath and the borough as a whole.

“These developments will help to revitalise the town centre and make other sites available for regeneration.

"The fact that we are re-using the Woolwich building is further justification for our position as London’s number one borough for recycling.”

The Woolwich building has been empty for seven years and its future was in doubt. Tesco’s application for a 10,000-square-metre store with 494 parking spaces got the go-ahead from Bexley Council’s planning committee in July last year.

Three shops, restaurants or cafes will also be built on the site as well as a community area.

At the same meeting, permission was also granted for 126 homes – 48 houses and 78 apartments – at the back of the Woolwich building.