A 26-acre (10.5-hectare) site in Stratford, east London, is to be transformed under plans for a new mixed-use scheme unveiled by Landprop, which is part of the Inter IKEA Group.

Strand East will transform a derelict site with open public spaces, community facilities and a restaurant operated by Graysons, along with a 350-bedroom hotel and 1,200 homes.

A creative zone built around Dane's Yard targeted at the creative industries and the Walk of Chimneys, which will celebrate the area's industrial heritage, are also proposed.

The development site is located to the south of London's Olympic Park and covers the area between Stratford High Street; the Three Mills Wall River; and the River Lea.

Arc-ML are the architects responsible for the proposals, with the first phase comprising the Dane's Yard element having already received approval from Newham Council.

Landprop has also revealed that it has acquired 9.34 acres (3.8 hectares) from the Olympic Park Legacy Company to bring the majority of the site under single ownership.

London mayor Boris Johnson said: "This is yet another great example of the 2012 legacy rippling out of the Olympic Park and across east London.

"It will help create a vibrant quarter within the brand new district we are creating in London, providing much needed family-sized housing and new jobs."

Landprop managing director Harald Müller added: "The completion of the land sale agreement with the OPLC allows us to turn this vision into reality.

"I will shortly be announcing an agreement with an internationally renowned hotel operator to run a high quality 350 bedroom hotel."

A public consultation is now due to take place before a hybrid planning application is lodged with the London Thames Gateway Development Corporation in early 2012.