A £16m sports, health and lifestyle centre is to be built as a Private Finance Initiative (PFI) consortium project in south-east London.

Lewisham Council has signed a contract with sport, leisure and facility management company Leisure Connection, and PFI specialist Linteum. Alfred McAlpine will design and build the facilities.

Located in a 20-acre parkland setting, Downham Lifestyle Centre will include a leisure centre featuring a gym; dance studio; a 25m, six-lane swimming pool with a learner pool; as well as a health centre, community hall and library. It will also act as an access point for council services to allow the local residents to manage and administer their Council Tax and other council issues.

The project will be financed by members of the consortium and by Barclays Bank.

Vital funds for the project will come from the sale of two former council-owned depots to the national house builder, Wates Homes, to be redeveloped into a residential housing estate with a proportion of affordable housing.

The contract between the PFI facility provider, Linteum and Lewisham Council will span 32 years from when the centre opens, and has a total value in excess of £50m.

Leisure Connection’s operating contract will also run for 32 years.

It is the operator’s third PFI project; its first opened three and a half years ago on behalf of Uttlesford District Council and in March this year, Leisure Connection and its consortium of partners signed a PFI with the London Borough of Brent to deliver a sports centre to replace the existing Willesden Sports Centre. The contract will span 25 years also has a total value in excess of £50m.

“As the nation becomes increasingly aware of the benefits of positively managing their health, more and more people are enjoying physical activity as part of their everyday lifestyle,” said Graham Farrant, chief executive of Leisure Connection.

“This new Lifestyle Centre will bring together the facilities and services to complement one another, but most importantly benefit the local people of Downham and the surrounding wards.”

Mayor of Lewisham, Steve Bullock, added: “I am absolutely delighted – this is great news for the people of Lewisham. Downham will be a state of the art centre that everyone can enjoy for years to come.”

Work has already begun on the centre, which is scheduled for completion by February 2007.