London, Aug 14 (IANS): The 27-hectare Olympic village in London has been sold to a developer for an astounding 557 million pounds. The site will become a new neighbourhood for London following the 2012 games.

The village was sold to property developer Delancey and Qatar's sovereign wealth fund, Sky News said.

Delancey and Qatari Diar, the property arm of the Qatari sovereign wealth fund, topped a rival bid from Hutchison Whampoa, owned by Hong Kong billionaire Li Ka-shing.

They also beat a one billion pound proposal to take over all the Olympic park - rather than just the village.

The site will have a mix of affordable housing, luxury homes, schools, healthcare facilities and open space, according to Delancey.

Olympic bosses say the sale would deliver a "significant return to the public purse" from the development, which cost around one billion pounds.

A further 268 million pounds has already been recouped from the sale of 1,379 affordable housing units on the site.

An Olympic Delivery Authority spokesperson said the government "never expected to make all the money back", the report said.

London Mayor Boris Johnson described the sale as a "great deal" for London that showed the confidence big private investors had in the future of east London.

"It is another big step towards securing a fantastic future for the new neighbourhoods and communities we have always said would be created as a major legacy for the capital after the 2012 Games," he said.