AN Eltham shopping arcade which has stood derelict for years should finally be demolished in the summer.

The Grove in Church Grove has dismayed residents by falling into disrepair as the saga over its much-delayed redevelopment rumbled on.

But now site owner Eltham Renaissance has signed a deal with Citygrove Securities to develop the £45m project.

Plans for the site include a supermarket and hotel run along with new homes, 20 per cent of which will be affordable.

Eltham Renaissance director Richard Upton said: "We acquired the Grove Market Place site just as the economy went into freefall in 2007.

"Since then we have been working very hard to secure a future for this important site in the heart of Eltham. The deal we have struck with Citygrove to take the scheme forward does just that.

"I am confident that the exciting future we planned for the site will now be delivered by a partner with considerable experience and commitment to Eltham’s town centre.

"It has been a somewhat painful experience for us to have to write off £7m value from our books, but, we move on and this is the right decision for Eltham."