Designers must move to make way for Chelsea 'Corso Como'

Plans to transform part of Chelsea into London's answer to Milan's glamorous Corso Como will lead to the eviction of two leading designer stores.

The Cadogan Estate wants to create 100,000 square feet of retail space and a restaurant, around a piazza inspired by the Italian city's fashion hotspot.

But it has emerged that the multi-million-pound project will force out interior designer Nicky Haslam, whose studio is on the site, and a flagship outlet of Smythson, the leather and stationery firm where Samantha Cameron is a part-time creative consultant.

Two post-war buildings in Sloane Street and Pavilion Road would be demolished and replaced with a single one up to six storeys high. The piazza would be on the site of what is currently a car park between the old buildings.

But when work starts in 2013, businesses now there will have to move. Ruthie Burgess, Haslam's personal assistant, said the firm had not thought "that far ahead" in terms of relocation: "We had heard about this but haven't had anything in writing on the plans."

A spokeswoman for Smythson said: "We will still have a presence in Sloane Street but there is no announcement about where that will be."

Cadogan Estate chief executive Hugh Seaborn said he hoped Smythson and Haslam, who has designed homes for Mick Jagger and Tina Brown, will stay in the area. "We are talking to them about their relocation options but we will not be able to offer everyone that," said Mr Seaborn.

The development will include major designers and more individual shops. "We are talking about Sloane Street-calibre fashion - we have Chloé and Cartier," said Mr Seaborn. "The shops will back onto the courtyard. We have put the restaurant overlooking it. It is very much a social and fashion hub.

"In Pavilion Road at the back we have got smaller shops, an opportunity for more "artisan" stores - things like a baker, if such a thing can be found."

A planning application has been lodged with Kensington and Chelsea council, which is due to rule on the proposal in autumn.

The estate financial report shows the Cadogan family paid itself a £30 million dividend as the estate's value recovered to pre-credit crunch levels of £3 billion. Its Sloane Street and King's Road retail portfolio made £42.3 million profit last year, up 11 per cent on the year before.