Ballymore, the Irish-based international property company, is set to embark on a major development next to Canary Wharf in the London docklands.

The five million sq ft (464,500 sq m) mixed commercial, residential and retail scheme has an estimated end value of £2 billion (€2.9 billion).

British Waterways Board (BWB) last night announced that Mr Seán Mulryan's company along with Canary Wharf Group plc had been chosen as preferred partners for the redevelopment of the high-profile Wood Wharf site.

It will be one of the largest regeneration projects in London and will create a fashionable new residential and working quarter which, along with Canary Wharf, will extend the city's third business district.

Ballymore's selection for such a prestigious development will be seen as a major coup by Mr Mulryan, whose company is now one of the largest landowners in the docklands.

Ballymore has completed seven major residential and office schemes in the docklands in the past eight years and is currently completing New Providence Wharf, a massive scheme of 720 apartments, a hotel and shopping facilities. The company recently sold, off the plans, 120 of the 260 apartments in the final block which will have 29 storeys, making it the tallest residential block in London.

BWB's choice of its two partners for Wood Wharf was "in recognition of the partnerships' planning, development and construction capabilities", according to the docklands company.

Mr Mulryan said last night that they would be building a world-class development of the highest quality.

The partnership had the experience, expertise, vision and resources to guarantee that this would be achieved, he said.