London Tube
London tube stations could be turned in to homes and offices in TfL scheme Reuters

London's latest mega-project has sparked a bidding war as property developers race to convert the capital's network of underground stations, buildings and land into luxury homes and tourist attractions.

The eagerly-awaited £1.1bn project is set to see 50 underground stations, bus stations and adjacent public buildings tuned into profit-making businesses.

TfL has not announced which properties are set to be included in the offer but it is thought that tube stations currently in use will be included along with some bus stations and land above tube stations.

Other potential uses for the sites include supermarkets, restaurants and depots for online retailers.

The revenues from the project will be used to upgrade the city's ailing public transport network and could be used to keep rail fares lower.

London Mayor Boris Johnson has said the scheme will unlock revenues from Transport for London assets. More than two thirds of TfL's 5,700 acre property portfolio is located within central London's zones 1 and 2.

The year-long tender process is set to launch on Monday.

The company decided to make the investment to ensure London's creaking transport network could cope with the city's expanding population, according to TfL's Director of Commercial Development.

"London's population is set to grow from 8.4 million today to 10 million by 2030, the equivalent of one full Tube train arriving every three days," he said.

"To enable this, London needs more homes and office spaces and the transport network needs sustained, long-term investment. Forming joint venture partnerships with property development experts will enable us to generate long-term income that we can invest in improving our network, which carries over 30 million journeys every day."

Overall, TfL is hoping to raise £3.4bn in non-fares revenue in the next ten years. The property investment is expected to bring in £1.1bn of the overall amount.