An £80 million scheme to build more than 300 new homes on a canal-side site in central London has been announced by the A2Dominion Group.

The housing provider has bought the two acre site, alongside the Wenlock canal basin, off the Regents Canal on the borders of Hackney and Islington.

The site comes with planning permission to build 327 one, two, three and four-bedrooms apartments. There will be 232 homes for private sale and 95 affordable properties, complete with 85,000 sq ft of commercial space.

Demolition of the commercial buildings currently on the site is due to start in 2012, with construction of the new homes likely to complete in 2013.

Alan Johnson, managing director (London) of A2Dominion New Homes, said: “We are delighted to have acquired this prime site from Deutsche Bank. This is an exciting project that will help to meet demands for high quality housing and commercial space in this part of London.

“The area is becoming increasingly popular with house-hunters and our site is close to excellent transport links.”

Designed by Stephen Marshall Architects the new homes will be built to meet level 4 of the Code for Sustainable Homes.