The ill-fated millennium dome is to be turned into a 20,000 seat arena, Lord Falconer has said.

Making a statement to peers on Wednesday, the minister announced a multi-million pound deal that the government hopes will bring to an end the long-running saga of how to dispose of the Greenwich development.

Forum Response: London First

Judith Salomon, director of property and planning at London First, told ePolitix.com: "The proposal for the dome and peninsula is a tremendous boost for London and will be the catalyst to regenerate East London. The creation of a vibrant new district on the Greenwich peninsula will contribute to relieving the enormous shortage of housing in London and provide a critical focus for the regeneration of the wider Thames Gateway.

"The significant new investment in the dome and waterfront area will create a world class centre for entertainment and leisure. London will benefit significantly from a state-of-the-art modern arena to host the world's top events.

"The deal itself is an excellent example of how the private and public sectors should be working together. The government is to be congratulated for opting for a joint venture approach, taking a long-term view, rather than just selling the land. Partnerships of this kind are critical to delivering the £110 billion of investment London needs over the next 15 years.

"Whilst not a part of the deal itself, London First also calls for the development of the Silvertown Link as part of the regeneration. The crossing is critical not only to delivering increased development on the Greenwich peninsula, but also to the north of the river. To make the most of the opportunity in the Thames Gateway it is critical to invest in essential infrastructure."