The new owner of the development has been confirmed as London Square, who bought the centre from former owners Galliard Homes.
The development has been approved to build 562 homes, comprising 389 private and 173 affordable houses, with 4,538sqm of ground floor commercial space.
In a statement, Gailliard told the News Shopper that it had pulled out from the development due to “shifting market conditions“ and “ongoing uncertainties” surrounding safety regulations.
Proposals to develop the 1960s Leegate Shopping Centre began in 2015 after the site officially closed in the early 2000s, and has remained empty for the past two years.
New buyer London Square purchased the site earlier this year, marking the developer’s 14th purchase since 2023.
The developer, who previously completed a development in Greenwich centre, said that it hopes to develop a mixed use development featuring a mix of residential homes as well as retail and leisure facilities.
It has not yet been confirmed when building works will start, but London Square confirmed in a statement that works are expected to start later in 2025.
Adam Lawrence, London Square’s Chief Executive Officer, said: “This acquisition will herald a new chapter for Lee town centre, with much-needed homes and a new retail and leisure destination to attract the existing community and new residents.
“We look forward to working with the London borough of Lewisham to get the re-development under way later this year.”
A spokesperson for Galliard Homes said: “Galliard Homes remain committed to the delivery of high-quality, sustainable housing that meets the needs of local communities.
“Throughout our tenure, which has spanned a period of unprecedented challenges — including a global pandemic, evolving political landscapes and national economic challenges, we have remained committed to balancing the interests of local stakeholders with commercial viability.
“Following the protracted planning process, we conducted a comprehensive review of the development to determine the best path forward.
“While the scheme’s fundamentals remained strong, shifting market conditions and ongoing uncertainties surrounding Building Safety Regulations introduced risks to delivery.
“To ensure the project can be successfully delivered, we have identified a highly reputable developer with an excellent track record in London Square to take the scheme forward.
“They share our commitment to delivering much-needed, high-quality homes, and we are confident that they will bring the development to fruition in due course, providing an excellent landmark scheme for the Capital.”
