By Hugo Gye

Last updated at 5:47 PM on 21st October 2011

Ikea has announced that it is moving into the property business as it reveals a new 26-acre development near the Olympic Park.

Strand East will contain 1,200 new homes, 480,000 square feet of offices and a 350-bedroom hotel in Stratford, east London.

It is the first major British development for LandProp, part of the Inter Ikea Group, which owns the intellectual assets of the furniture chain.

Plans: Strand East will stand in the shadow of the Olympic stadium in east London

Plans: Strand East will stand in the shadow of the Olympic stadium in east London

The company is believed to have paid about 25million for the site, which had previously been in receivership.

It is the second biggest private-sector project in the Olympic Park, after the Westfield Stratford City shopping centre which opened last month.

'Not only does it create a new high quality, waterside destination which provides new homes, jobs and leisure facilities, it is a demonstration of investor confidence in the area's future in a difficult market,' Olympic Legacy Minister Bob Neill said.

The development's canalside location has led to it being called a 'mini Venice', and it will boast a boat taxi service and a floating cocktail bar.

Politicians hope the Games will spark a wider regeneration of the area.

Ikea: The developer is a company linked to the chain of furniture stores

Ikea: The developer is a company linked to the chain of furniture stores

LandProp managing director Harald Muller said: 'We are hugely excited to be bringing forward these plans, we see Strand East as a place for families which contributes to the regeneration of Stratford and takes its place alongside the many neighbourhoods of London.'

He added that although London would be the focus of its UK activities as 'the machine that will always work', the company was already assembling sites in undisclosed locations around the UK.

The development company already operates in Latvia, Lithuania, Poland and Holland among other countries.

A public consultation on Strand East is about to begin and a planning application is due to be submitted to the London Thames Gateway Development Corporation in early 2012.

Here's what readers have had to say so far. Why not add your thoughts below, or debate this issue live on our message boards.

The comments below have not been moderated.

How much money are we the British public loosing at that knock down price and what does the company know of building?

Report abuse

How will they be able to 'Breathe' ? with no Trees to oxygenate the area,its a concrete and asphalt hermetical sealed metropolis,a true nightmare.No Trees,no Birds,no Flowers,no Ducks,no Swans,no Parks,no Playgrounds,no Bike-ways,no Copses,no Woods. It needs a Big Rethink !.

Report abuse

How did they manage to get that lot of land in London for 25 million? Surely that is cheap for London land prices?

Report abuse

the modern methods of construction are second to none - these provide sound solutions both environmentally and economic solutions to the chronic shortage of housing in the UK, whilst maintaining the appeal of traditional build - they don't have to resemble space ships. Also, provides manufacturing jobs in the process to supply these requirements - a win - win from where I sit!

Report abuse

I couldn't care less about the Olympic Park. It means nothing to me pre-Olympics and likewise post Olympics. It's a London games/project, which represents what London is and nothing to do with England or Great Britain even.

Report abuse

Plenty of rat runs to get mugged in. Looks appalling, what's wrong with old fashioned streets and houses? People like to live in them.

Report abuse

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.