WORCESTER, MA-Berkeley Investments, Inc. is finally divesting half of its redevelopment project to Hanover, quite possibly saving the project, which was proposed six years ago to revitalize downtown Worcester. Hanover acquired the parcel in a purchase-and-sale arrangement which paid out $5 million for its designated half of the redevelopment site.

Berkeley purchased the entire 20 acres originally, but development stalled during the recession and locally-based Hanover joined the process, which jump-started the project. The 10-acre parcel which Hanover has taken over is currently home to the Worcester Outlet mall, which will be razed to make way for the a regional headquarters for Paul Revere Life Insurance Co., an affiliate of Unum.

Meanwhile, Berkely is hanging onto a 10-acre parcel which lies to the west encompassing two office towers, a 1,450-space garage and roughly 300,000 square feet of development space. The redevelopment project was proposed by Berkeley in 2004 and, according to the Telegram & Gazette clocked in at $563 million.

The demolition of a portion of the outlet mall can begin immediately, however this is will happen on an estimated 12 to 15 month timeline. If that timelie holds, office portion would not be set to begin construction than, until around 2012.