Tokyu Corporation and the Western Australian Government see the agreement as a significant document which spells out the good faith and intentions of both sides.

Broad goals include commitments by Tokyu to 'retrofit' the Two Rocks centre, improve the existing marina and work on what is known as the IDEA project to create employment and attract preferred companies to the area.

Tokyu will also agree to do feasibility studies for urban development and to look at access requirements to establish a timetable for transport routes into the area.

The parties both agree to ensure the land is developed in an environmentally, socially, and economically sustainable way, to use world's best practice in urban design and to encourage the use of public transport.

The State Government and the WA Planning Commission also agreed to provide continued support to the jobs project linked with the development.

The signing comes after almost 10 years of negotiation between Tokyu and the Government and is the second formal undertaking by the parties.