Carillion has been selected by the Homes & Communities Agency to deliver a new mixed use development at Tower Works, a key development site within Holbeck Urban Village in Leeds.

The combined development value of the proposed masterplan will be in in the region of £80 million and construction work will start in January 2016.

The brief is to create a mixed-use, sustainable community with a distinctive sense of place, which balances high quality and contemporary design with the existing heritage structures which occupy the site.

The 1.04 hectare site is an old industrial location which houses three Italianate Towers. It is these grade two listed buildings which give the site its name.

Carillion’s developments proposals include 92,000sq ft of commercial office space, 20,000sq ft of A1 and A3 retail restaurant and bar spaces and 147 residential units.

Naz Parkar, executive director at the HCA said: “Today’s announcement marks the start of our partnership with Carillion who will turn this empty space into a vibrant destination, with 147 homes, shops, restaurants and places to work, creating an important link between Holbeck and Leeds City Centre offering a place for local people to live, work and socialise in a spectacular canal side location only 5 minutes away from the city centre, that will help to kick-start the next phase of the regeneration of Holbeck Urban Village.”

Councillor Richard Lewis, Leeds City Council’s executive member for transport and the economy, said: “Tower Works is truly an iconic site and it is very important for the regeneration of the South Bank. As a council we are keen that developments here have high quality designs and that they include housing for families- a first for this area.

“I particularly welcome the quality of the proposed residential elements of the Carillion scheme and the plans for housing suitable for families. This scheme can be a catalyst for more good quality city living and the physical regeneration of Holbeck Urban Village.”